[Code of Federal Regulations]
[Title 32, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR266.4]

[Page 608-609]
 
                       TITLE 32--NATIONAL DEFENSE
 
        CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE (CONTINUED)
 
PART 266_AUDITS OF STATE AND LOCAL GOVERNMENTS, INSTITUTIONS OF HIGHER 
 
Sec. 266.4  Policy.

    The DoD Components shall rely on and use financial and performance 
audits performed by non-Federal auditors under OMB Circular A-128 and 
independent auditors under OMB Circular A-133 in the oversight of 
Federal financial assistance provided to State and local governments, 
institutions of higher education, and other nonprofit institutions. 
Public Law 98-502 provides that a non-Federal audit of the operations of 
a State or local government performed under OMB Circular A-128 may 
exclude public colleges and universities, in which case an audit of

[[Page 609]]

the public college or university shall be made in accordance with OMB 
Circular A-133. The DoD Components, however, may request additional 
audits of such assistance when required by regulation or to ensure 
effective use of such assistance as deemed necessary. Any additional 
audit effort shall be planned and carried out in such a way as to avoid 
duplication and shall be separately funded.