TITLE 32 - NATIONAL DEFENSE

SUBTITLE A - DEPARTMENT OF DEFENSE

CHAPTER I - OFFICE OF THE SECRETARY OF DEFENSE

SUBCHAPTER M - MISCELLANEOUS

PART 266 - AUDITS OF STATE AND LOCAL GOVERNMENTS, INSTITUTIONS OF HIGHER EDUCATION, AND OTHER NONPROFIT INSTITUTIONS

266.6 - Procedures.

The costs of audits made by non-Federal auditors under OMB Circulars A128 and A133 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 A87, A122 and A21 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 A128 and A133 and other applicable cost principles and regulations.

3 See footnote 1 to 266.1(b).