§ 3051.5 - Basic requirements.

(a) If not included within the scope of a single audit obtained in accordance with the Single Audit Act of 1984 and OMB Circular A-128, institutions of higher education and other nonprofit institutions that receive $100,000 or more a year in USDA Federal financial assistance or Federal cost-type contracts used to buy services and goods for the use of the Federal Government, shall have an audit conducted in accordance with the requirements of OMB Circular A-133. However, nonprofit institutions and organizations meeting the above criteria but participating in only one program have the option of having an audit in accordance with the provisions of OMB Circular A-133 or a program-specific audit. Such program-specific financial audits shall be performed in accordance with the Government Auditing Standards covering financial audits issued by the Comptroller General of the United States. In addition, the program-specific audit shall be performed in accordance with:

(1) Any applicable USDA audit guide,

(2) Any applicable compliance tests contained in the OMB Compliance Supplement for the specific program involved, or

(3) any program-specific audit regulations.

(4) If the program is not covered by paragraphs (a)(1) through (3) of this section, the auditor shall design appropriate compliance tests in accordance with the Government Auditing Standards.

(b) Nonprofit institutions and organizations that receive $25,000 or more but less than $100,000 in Federal financial assistance or Federal cost-type contracts used to buy services and goods for the use of the Federal Government, may opt for an audit of each Federal award or a program-specific audit. Otherwise, an audit prepared in accordance with the provisions of appendix A of this part prevails.

(c) Nonprofit institutions and organizations that receive direct or indirect USDA Federal financial assistance or Federal cost-type contracts used to buy services and goods for the use of the Federal Government, totalling less than $25,000 are exempt from Federal audit requirements. However, records must be available for review by appropriate officials of USDA, the General Accounting Office (GAO) or a subgranting entity.

(d) USDA OFM may authorize an exception on a case-by-case basis to the requirements of this section for an organizational audit when requested by a nonprofit organization that receives Federal financial assistance under two or more programs that are substantially similar and the requesting organization can demonstrate that a more limited audit would satisfy the purposes of OMB Circular A-133.