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PAYMENT AND AUDITING

Sec. 38. The Commissioner shall certify annually the
apportionment for each State which has complied with the
provisions of this Act to the Secretary of the Treasury, who
shall, through the Division of Disbursement of the Treasury
Department and prior to audit or settlement by the General
Accounting Office, pay to the treasurer of such State the
amount so certified in four equal installments, as soon after
the first day of each quarter commencing April 1, 1941.
Each such treasurer shall account for moneys received as a
trustee of funds of the United States, and shall pay out such
funds only on the requisition of the State educational author-
ity which has been approved by the Commissioner.

Suc. 39. The Commissioner shall cause an audit of the
expenditure of funds apportioned to the States under this Act.
If any portion of such funds shall be expended by any State
in a manner contrary to any provision of this Act, or shall
otherwise be lost or unlawfully used, an equal amount shall,
after reasonable notice, be withheld from the next ensuing
apportionment to any sil State unless such amount is re-
placed by such State. AJl funds expended under the pro-
visions of this Act, shall be expended only dheoual publie
agencies and under public control, as determined by the
respective States: Provided, That nothing in this Act shall be

construed as to limit State legislatures from making such