[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: 38CFR41.5] [Page 732-733] TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED) PART 41--AUDITING REQUIREMENTS--Table of Contents Sec. 41.5 Definitions. For the purposes of these regulations, the following definitions from the Single Audit Act apply: (a) Cognizant agency means the Federal agency assigned by the OMB (Office of Management and Budget) to carry out the responsibilities described in Sec. 41.11. (b) Federal financial assistance means assistance provided by a Federal agency in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations, but does not include direct Federal cash assistance to individuals. It includes awards received directly from Federal agencies, or indirectly through other units of State and local governments. (c) Federal agency has the same meaning as the term 'agency' in section 551(1) of Title 5 U.S.C. (d) Generally accepted accounting principles has the meaning specified in the generally accepted government auditing standards. (e) Generally accepted government auditing standards means the Standards For Audit of Government Organizations, Programs, Activities, and Functions, developed by the Comptroller General, dated February 27, 1981. (f) Independent auditor means: (1) A State or local government auditor who meets the independence standards specified in generally accepted government auditing standards; or (2) A public accountant who meets such independence standards. (g) Internal controls means the plan of organization and methods and procedures adopted by management to ensure that: (1) Resource use is consistent with laws, regulations, and policies; (2) Resources are safeguarded against waste, loss, and misuse; and (3) Reliable data are obtained, maintained, and fairly disclosed in reports. (h) Indian tribe means any Indian tribe, band, nations, or other organized group or community, including any Alaskan Native village or regional or village corporations (as defined in, or established under, the Alaskan Native Claims Settlement Act) that is recognized by the United States as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (i) Local government means any unit of local government within a State, including a county, a borough, municipality, city, town, township, parish, local public authority, special district, school district, intrastate district, council of governements, and any other instrumentality of local government. [[Page 733]] (j) Major Federal Assistance Program, for State and local governments having Federal assistance expenditures between $100,000 and $100,000,000, means any program for which Federal expenditures during the applicable year exceed the larger of $300,000, or 3 percent of such total expenditures. Where total expenditures of Federal assistance exceed $100,000,000, the following criteria apply: ------------------------------------------------------------------------ Total Expenditures of Federal Financial Major Federal Assistance of all Programs Assistance Program -------------------------------------------------- Means Any Program More Than But Less Than That Exceeds ------------------------------------------------------------------------ $100 million 1 billion $ 3 million 1 billion 2 billion 4 million 2 billion 3 billion 7 million 3 billion 4 billion 10 million 4 billion 5 billion 13 million 5 billion 6 billion 16 million 6 billion 7 billion 19 million over 7 billion 20 million ------------------------------------------------------------------------ (k) Public accountants means those individuals who meet the qualification standards included in generally accepted government auditing standards for personnel performing government audits. (l) State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, any instrumentality thereof, and any multi-State, regional or interstate entity that has governmental functions and any Indian tribe. (m) Subrecipient means any person or government department, agency, or establishment that receives Federal financial assistance to carry out a program through a State or local government, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a direct recipient of Federal financial assistance. (Authority: Pub. L. 98-502)