; corrective action; withholding, reduction, or elimination of funding (a) Evaluations of States by the Secretary (1) In general The Secretary shall conduct, in not fewer than 1/3 of the States in each fiscal year, evaluations (including investigations) of State compliance with this subtitle, including requirements relating to the use of funds received under this subtitle, and especially with respect to compliance with the requirements of State plans submitted under section 678(b) and the uniform administrative requirements, cost principles, and audit requirements described in section 674(c) as applied to funds received under this subtitle. (2) Report to States The Secretary shall submit, to each State evaluated, a report containing— (A) the results of such evaluation; and (B) (i) recommendations for improvements designed to enhance the benefit and impact of the activities carried out with such funds; and (ii) in the event a serious deficiency is found regarding a State’s compliance with this subtitle, including requirements relating to the use of funds received under this subtitle, a proposed corrective action plan. (3) State response Not later than 45 days after receiving a report under paragraph (2)— (A) a State that received recommendations under paragraph (2)(B)(i) shall submit to the Secretary a plan of action in response to the recommendations