[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: 38CFR41.11]

[Page 735-736]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 41--AUDITING REQUIREMENTS--Table of Contents
 
Sec. 41.11  Cognizant agency responsibilities.

    The Single Audit Act provides for cognizant Federal agencies to 
oversee the implementation of OMB Circular A-128:
    (a) The Office of Management and Budget will assign cognizant 
agencies for States and their subdivisions and larger local governments 
and their subdivisions. Other Federal agencies may participate with an 
assigned cognizant agency, in order to fulfill the cognizance 
responsibilities. Smaller governments not assigned a cognizant agency 
will be under the general oversight of the Federal agency that provides 
them the most funds whether directly or indirectly.
    (b) A cognizant agency shall have the following responsibilities:

[[Page 736]]

    (1) Ensure that audits are made and reports are received in a timely 
manner and in accordance with the requirements of these regulations.
    (2) Provide technical advice and liaison to State and local 
governments and independent auditors.
    (3) Obtain or make quality control reviews of selected audits made 
by non-Federal audit organizations, and provide the results, when 
appropriate, to other interested organizations.
    (4) Promptly inform other affected Federal agencies and appropriate 
Federal law enforcement officials of any reported illegal acts or 
irregularities. They should also inform State or local law enforcement 
and prosecuting authorities, if not advised by the recipient, of any 
violation of law within their jurisdiction.
    (5) Advise the recipient of audits that have been found not to have 
met the requirements set forth in these regulations. In such instances, 
the recipient will be expected to work with the auditor to take 
corrective action. If corrective action is not taken, the cognizant 
agency shall notify the recipient and Federal awarding agencies of the 
facts and make recommendations for followup action. Major inadequacies 
or repetitive substandard performance of independent auditors shall be 
referred to appropriate professional bodies for disciplinary action.
    (6) Coordinate, to the extent practicable, audits made by or for 
Federal agencies that are in addition to the audits made pursuant to 
these regulations; so that the additional audits build upon such audits.
    (7) Oversee the resolution of audit findings that affect the 
programs of more than one agency.

(Authority: Pub. L. 98-502)