The report must include information on what projects have been funded and at what cost, how the funds have been marketed to young people and how they have met the Every Child Matters five outcomes. A Department for Education and Skills spokesman said "satisfactory" meant "meeting the objectives of the fund".
England's local authorities are set to receive a total of 115m over the next two years.
Youth minister Beverley Hughes said she would consider withdrawing funds from authorities that cut their youth service budgets as a response to receiving the extra funding.
"I will be loath to send authorities their second year of (opportunity fund) money if they cut their budgets in the first year," she told Young People Now.
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