[Code of Federal Regulations]

[Title 45, Volume 3]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR602.26]



[Page 52-53]

 

                        TITLE 45--PUBLIC WELFARE

 

                 CHAPTER VI--NATIONAL SCIENCE FOUNDATION

 

PART 602_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 

AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 602.26  Non-Federal audit.



    (a) Basic rule. Grantees and subgrantees are responsible for 

obtaining audits in accordance with the Single Audit Act Amendments of 

1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of 

States, Local



[[Page 53]]



Governments, and Non-Profit Organizations.'' The audits shall be made by 

an independent auditor in accordance with generally accepted government 

auditing standards covering financial audits.

    (b) Subgrantees. State or local governments, as those terms are 

defined for purposes of the Single Audit Act Amendments of 1996, that 

provide Federal awards to a subgrantee, which expends $300,000 or more 

(or other amount as specified by OMB) in Federal awards in a fiscal 

year, shall:

    (1) Determine whether State or local subgrantees have met the audit 

requirements of the Act and whether subgrantees covered by OMB Circular 

A-110, ``Uniform Administrative Requirements for Grants and Agreements 

with Institutions of Higher Education, Hospitals, and Other Non-Profit 

Organizations,'' have met the audit requirements of the Act. Commercial 

contractors (private for-profit and private and governmental 

organizations) providing goods and services to State and local 

governments are not required to have a single audit performed. State and 

local governments should use their own procedures to ensure that the 

contractor has complied with laws and regulations affecting the 

expenditure of Federal funds;

    (2) Determine whether the subgrantee spent Federal assistance funds 

provided in accordance with applicable laws and regulations. This may be 

accomplished by reviewing an audit of the subgrantee made in accordance 

with the Act, Circular A-110, or through other means (e.g., program 

reviews) if the subgrantee has not had such an audit;

    (3) Ensure that appropriate corrective action is taken within six 

months after receipt of the audit report in instance of noncompliance 

with Federal laws and regulations;

    (4) Consider whether subgrantee audits necessitate adjustment of the 

grantee's own records; and

    (5) Require each subgrantee to permit independent auditors to have 

access to the records and financial statements.

    (c) Auditor selection. In arranging for audit services, Sec. 602.36 

shall be followed.



[53 FR 8080, 8087, Mar. 11, 1988, as amended at 62 FR 45939, 45946, Aug. 

29, 1997]



                    Changes, Property, and Subawards