[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR140.805]

[Page 15-16]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 140_REIMBURSEMENT--Table of Contents
 
              Subpart H_State Highway Agency Audit Expense
 
Sec. 140.805  Definitions.

    (a) Project related audits. Audits which directly benefit Federal-
aid highway projects. Audits performed in accordance with the 
requirements of 23 CFR part 12, audits of third party contract costs, 
and other audits providing assurance that a recipient has complied with 
FHWA regulations are all considered project related audits. Audits 
benefiting only nonfederal projects, those performed for SHA management 
use only, or those serving similar nonfederal purposes are not 
considered project related.
    (b) Third party contract costs. Project related costs incurred by 
railroads, utilities, consultants, governmental instrumentalities, 
universities, nonprofit

[[Page 16]]

organizations, construction contractors (force account work), and 
organizations engaged in right-of-way studies, planning, research, or 
related activities where the terms of a proposal or contract (including 
lump sum) necessitate an audit. Construction contracts (except force 
account work) are not included in this group.