[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: 32CFR266.6]

[Page 610]
 
                       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. 266.6  Procedures.

    The costs of audits made by non-Federal auditors under OMB Circulars 
A-128 and A-133 are allowable charges to Federal financial assistance 
programs. The charges may be considered as a direct cost or an allocated 
indirect cost in accordance with OMB Circulars A-87, A-122 and A-21 \3\; 
FAR, part 31 (48 CFR part 31); or the DFARS, part 231 (48 CFR part 231). 
Generally, the percentage of costs charged to Federal assistance 
programs for an audit shall not exceed the percentage of Federal funds 
expended to the total funds expended by the recipient during the fiscal 
year. No cost, however, may be charged to Federal programs for audits 
not made in accordance with OMB Circulars A-128 and A-133 and other 
applicable cost principles and regulations.
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    \3\ See footnote 1 to Sec. 266.1(b).
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