; (ii) the Associate Administrator believes that amounts received by the State, territory, or commonwealth under a grant under this subsection are being used for ineligible activities or as part of fraudulent activity; or (iii) the most recent audit report shows evidence of material noncompliance with program requirements, in which case the Associate Administrator may conduct an audit annually until compliance is reestablished. . 4. Funding transparency and predictability (a) Cap on reductions in grants Section 22(l) of the Small Business Act ( 15 U.S.C. 649(l) ) is amended by striking paragraph (4) and inserting the following: (4) Limitations (A) Definitions In this paragraph— (i) the term current fiscal year means the fiscal year for which the Administrator is determining the amount of a grant to be awarded to a State, territory, or commonwealth under the program