[Code of Federal Regulations]

[Title 34, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 34CFR80.26]



[Page 211-212]

 

                           TITLE 34--EDUCATION

 

PART 80_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 

AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  80.26  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 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



[[Page 212]]



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

local governments should use their own procedures to ensure that the 

contractors has complied with laws and regulations affecting the 

expenditures 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, OMB Circular A-133, 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.  80.36 

shall be followed.



(Authority: 20 U.S.C. 1221e-3(a)(1) and 3474, OMB Circulars A-102, A-128 

and A-133)



    Note: The requirements for non-Federal audits are contained in the 

appendix to part 80--Audit Requirements for State and Local Governments.



[53 FR 8071 and 8087, Mar. 11, 1988, as amended at 53 FR 8072, Mar. 11, 

1988; 56 FR 1698, Jan. 16, 1991; 62 FR 45939, 45943, Aug. 29, 1997]



                    Changes, Property, and Subawards