CFR > Title 10 - Energy > CHAPTER II—DEPARTMENT OF ENERGY > SUBCHAPTER H—ASSISTANCE REGULATIONS (parts 600 to 611) > PART 603—TECHNOLOGY INVESTMENT AGREEMENTS > SUBPART F—Award Terms Affecting Participants' Financial, Property, and Purchasing Systems (§603.600 to §603.705) > 603.670—Flow down audit requirements to subrecipients.

603.670—Flow down audit requirements to subrecipients.

(a) In accordance with § 603.610, an expenditure-based TIA must require participants to flow down the same audit requirements to a subrecipient that would apply if the subrecipient were a participant.
(b) For example, a for-profit participant that is audited by the DCAA:
(1) Would flow down to a university subrecipient the Single Audit Act requirements that apply to a university participant;
(2) Could enter into a subaward allowing a for-profit participant, under the circumstances described in § 603.650(a), to use an IPA to do its audits.
(c) This policy applies to subawards for substantive performance of portions of the RD&D project supported by the TIA, and not to participants' purchases of goods or services needed to carry out the RD&D.