[Weekly Compilation of Presidential Documents Volume 32, Number 27 (Monday, July 8, 1996)]
[Page 1197]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Signing the Single Audit Act Amendments of 1996

July 5, 1996

    Today I have signed into law S. 1579, the ``Single Audit Act 
Amendments of 1996.'' This Act will help make Government work better by 
reducing the burden and cost of Federal audit requirements on State and 
local governments and nonprofit organizations.
    The Single Audit Act of 1984 replaced multiple grant-by-grant audits 
with a single annual or biennial audit process for State and local 
governments that receive Federal assistance. S. 1579 builds on and 
improves upon the 1984 Act in several ways.
    First, it will help save millions of dollars by reducing the need 
for costly audits without reducing essential Federal oversight. The 
threshold that triggers an audit requirement will be raised from $25,000 
to $300,000. This preserves audit coverage for 95 percent of Federal 
assistance.
    Second, the bill will reduce the audit burden for well-managed 
entities. Nonprofits and State and local governments that have put into 
operation management controls that assure the proper use of Federal 
assistance will be subject to less burdensome audit requirements.
    Third, S. 1579 will improve the oversight of Federal assistance 
programs, totaling over $250 billion annually, by focusing on the 
programs presenting the greatest financial risks to Government. Placing 
greater emphasis on program risks will ensure that Federal assistance is 
being used properly, while also ensuring the most effective use of 
Federal audit resources.
    My Administration was actively involved in the development of this 
legislation, and strongly supported its passage. I am pleased to sign 
this important legislation.
                                            William J. Clinton
The White House,
July 5, 1996.

Note: S. 1579, approved July 5, was assigned Public Law No. 104-156.