§ 3015.71 - Policy.

(a) OMB Circular A-128, included herein as Appendix B, establishes uniform audit requirements for State, local and Indian Tribal governments, or their subdivisions, that receive Federal financial assistance. The Circular requires recipients and subrecipients of Federal financial assistance to arrange for independent audits of financial operations, including compliance with certain provisions of Federal laws and regulations, and to assure that single audits are made in accordance with Circular A-128.

(b) A State, local, or Indian Tribal government which receives less than $25,000 in Federal assistance is exempt from the requirements contained herein, but shall have an audit made in accordance with State and local law or regulations for any fiscal year in which it receives less than $25,000 in Federal financial assistance.

(c) A single audit in accordance with Circular A-128 and this subpart shall be in lieu of any audit required under individual USDA Federal assistance programs. A single audit should provide USDA agencies with the information they need to carry out their responsibilities and they shall rely upon and use that information. Any additional audits needed by USDA shall be conducted or arranged by the Office of Inspector General in such a way as to avoid duplication of effort. Audit requirements in USDA individual agency regulations and directives for assistance programs administered in cooperation with State, local, and Indian Tribal governments shall be limited to requiring compliance with OMB Circular A-128 and this subpart.

(d) State, local and Indian Tribal governments for which OMB has assigned USDA as the “cognizant agency” shall apply the audit requirements set forth in Circular A-128 and this subpart.

(e) State, local and Indian Tribal governments that receive financial assistance from USDA, and have been assigned a cognizant agency other than USDA, shall follow the audit requirements established by the respective cognizant agency. If the designated cognizant agency has not established Circular A-128 audit requirements, or if OMB has not designated a cognizant agency, those units of governments shall follow the audit requirements contained in Circular A-128, and this subpart.