Title 2

PART 1128 APPENDIX E



Appendix E to Part 1128 - Terms and Conditions for FMS Article V, “Non-Federal Audits”

2:1.2.8.6.13.7.64.7.32 : Appendix E

Appendix E to Part 1128 - Terms and Conditions for FMS Article V, “Non-Federal Audits”

Unless a DoD Component reserves Section B, as permitted by § 1128.605, a DoD Component's general terms and conditions must use the following wording for FMS Article V.

FMS Article V. Non-Federal Audits (DECEMBER 2014)

Section A. Requirements for entities subject to the Single Audit Act. You and each subrecipient under this award that is an institution of higher education, nonprofit organization, State, local government, or Indian tribe must comply with the audit requirements specified in Subpart F of 2 CFR part 200, which is the OMB implementation of the Single Audit Act, as amended (31 U.S.C. chapter 75).

Section B. Requirements for for-profit entities. Any for-profit entity that receives a subaward from you under this award is subject to the audit requirements specified in 32 CFR 34.16. Your subaward terms and conditions will require the subrecipient to provide the reports to you if it is willing to do so, so that you can resolve audit findings that pertain specifically to your subaward (e.g., disallowance of costs). If the for-profit entity is unwilling to agree to provide the auditor's report to you, contact the grants officer for this award to discuss an alternative approach for carrying out audit oversight of the subaward. If the grants officer does not provide an alternative approach within 30 days of receiving your request, you may determine an approach to ensure the for-profit subrecipient's compliance with the subaward terms and conditions, as described in OMB guidance at 2 CFR 200.501(h).