b201a113_lowability_of_Costs_Activities__Explanation_of_Allowable_Costs
[Items] Audit Services
(a) A reasonably proportionate share of the costs of audits required by, and performed in accordance with, the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507), as implemented by requirements of 45 CFR 75, are allowable. However, the following audit costs are unallowable: (1) Any costs when audits required by the Single Audit Act and Subpart F- Audit Requirements of 45 CFR 75 have not been conducted or have been conducted but not in accordance therewith; and (2) Any costs of auditing a non- Federal entity that is exempted from having an audit conducted under the Single Audit Act and Subpart F-Audit Requirements of 45 CFR 75 because its expenditures under Federal awards are less than $750,000 during the non- Federal entity's fiscal year. (b) The costs of a financial statement audit of a non-Federal entity that does not currently have a Federal award may be included in the indirect cost pool for a cost allocation plan or indirect cost proposal. (c) Pass-through entities may charge Federal awards for the cost of agreed-upon-procedures engagements to monitor subrecipients (in accordance with Subpart D of 45 CFR 75.351 through 75.353) which are exempted from the requirements of the Single Audit Act and Subpart F of 45 CFR 75. This cost is allowable only if the agreed-upon-procedures engagements are: (1) Conducted in accordance with GAGAS attestation standards; (2) Paid for and arranged by the pass-through entity; and (3) Limited in scope to one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; and reporting.
7.9 Allowability of Costs/Activities
Explanation of Allowable Costs