[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR41.12]

[Page 736]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 41--AUDITING REQUIREMENTS--Table of Contents
 
Sec. 41.12  Illegal acts or irregularities.

    If the auditor becomes aware of illegal acts or other 
irregularities, prompt notice shall be given to recipient management 
officials above the level of involvement. (See also Sec. 41.13(a)(3) for 
the auditor's reporting responsibilities.) The recipient, in turn, shall 
promptly notify the cognizant agency of the illegal acts or 
irregularities and of proposed and actual actions, if any. Illegal acts 
and irregularities include such matters as conflicts of interest, 
falsification of records or reports, and misappropriations of funds or 
other assets.

(Authority: Pub. L. 98-502)