CFR > Title 32 - National Defense > SUBTITLE A—Department of Defense > CHAPTER I—OFFICE OF THE SECRETARY OF DEFENSE (parts 1 to 399) > SUBCHAPTER M—MISCELLANEOUS (parts 191 to 284) > PART 266—AUDITS OF STATE AND LOCAL GOVERNMENTS, INSTITUTIONS OF HIGHER EDUCATION, AND OTHER NONPROFIT INSTITUTIONS > 266.6—Procedures.

266.6—Procedures.

The costs of audits made by non-Federal auditors under OMB Circulars A-128 and A-133 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 A-87, A-122 and A-21 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 A-128 and A-133 and other applicable cost principles and regulations.

Code of Federal Regulations

Footnote(s): 3 See footnote 1 to § 266.1(b) .