[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: 38CFR41.9]

[Page 735]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 41--AUDITING REQUIREMENTS--Table of Contents
 
Sec. 41.9  Subrecipients.

    State or local governments that receive Federal financial assistance 
and provide $25,000 or more of it in a fiscal year to a subrecipient 
shall:
    (a) Determine whether State or local subrecipients have met the 
audit requirements of these regulations and whether subrecipients 
covered by Circular A-110, ``Uniform requirements for grants to 
universities, hospitals, and other nonprofit organizations,'' have met 
that requirement;
    (b) Determine whether the subrecipient spent Federal assistance 
funds in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subrecipient made in 
accordance with these regulations, Circular A-110, or through other 
means (e.g., program reviews) if the subrecipient has not yet had such 
an audit;
    (c) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instances of non-compliance 
with Federal laws and regulations;
    (d) Consider whether subrecipient audits necessitate adjustment of 
the recipient's own records; and
    (e) Require each subrecipient to permit independent auditors to have 
access to the records and financial statements as necessary to comply 
with these regulations.

(Authority: Pub. L. 98-502)