THE FOLLOWING COMPLIANCE REQUIREMENTS APPLY TO FEDERAL AWARDS WITH TERMS AND CONDITIONS BASED ON THE OMB CIRCULAR A-102 COMMON RULE, OMB CIRCULAR A-110 (2 CFR PART 215), AND THE OMB COST PRINCIPLES CIRCULARS PART 3.1 A. ACTIVITIES ALLOWED OR UNALLOWED Compliance Requirements The specific requirements for activities allowed or unallowed are unique to each Federal program and are found in the laws, regulations, and the provisions of contracts or grant agreements pertaining to the program. For programs listed in this Supplement, the specific requirements of the governing statutes and regulations are included in Part 4 Agency Program – Requirements or Part 5 Clusters of Programs, as applicable. This type of compliance – requirement specifies the activities that can or cannot be funded under a specific program. In addition, ARRA has established a crosscutting unallowable activity for all funded awards. Pursuant to Section 1604 of ARRA, none of the funds appropriated or otherwise made available in ARRA may be used by any State or local government, or any private entity, for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool. Source of Governing Requirements The requirements for activities allowed or unallowed are contained in program legislation or, as applicable, ARRA, Federal awarding agency regulations, and the terms and conditions of the award. Audit Objectives 1. Obtain an understanding of internal control, assess risk, and test internal control as required by OMB Circular A-133 §___.500(c). 2. Determine whether Federal awards were expended only for allowable activities. Suggested Audit Procedures Internal Control – 1. Using the guidance provided in Part 6 Internal Control, perform procedures to obtain an – understanding of internal control sufficient to plan the audit to support a low assessed level of control risk for the program. 2. Plan the testing of internal control to support a low assessed level of control risk for activities allowed or unallowed and perform the testing of internal control as planned. If internal control over some or all of the compliance requirements is likely to be ineffective, see the alternative procedures in §___.500(c)(3) of OMB Circular A-133,
THE FOLLOWING COMPLIANCE REQUIREMENTS APPLY TO FEDERAL AWARDS WITH TERMS AND CONDITIONS BASED ON THE OMB CIRCULAR A-102 COMMON RULE, OMB CIRCULAR A-110 (2 CFR PART 215), AND THE OMB COST PRINCIPLES CIRCULARS PART 3.1 A. ACTIVITIES ALLOWED OR UNALLOWED Compliance Requirements The specific requirements for activities allowed or unallowed are unique to each Federal program and are found in the laws, regulations, and the provisions of contracts or grant agreements pertaining to the program. For programs listed in this Supplement, the specific requirements of the governing statutes and regulations are included in Part 4 – Agency Program Requirements or Part 5 – Clusters of Programs, as applicable. This type of compliance requirement specifies the activities that can or cannot be funded under a specific program. In addition, ARRA has established a crosscutting unallowable activity for all awards. Pursuant to Section 1604 of ARRA, none of the funds appropriated or otherwise made available in ARRA may be used by any State or local government, or any private entity, for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool. Source of Governing Requirements The requirements for activities allowed or unallowed are contained in program legislation or, as applicable, ARRA, Federal awarding agency regulations, and the terms and conditions of the award. Audit Objectives 1. Obtain an understanding of internal control, assess risk, and test internal control as required by OMB Circular A-133 §___.500(c). 2. Determine whether Federal awards were expended only for allowable activities. Suggested Audit Procedures – Internal Control 1. Using the guidance provided in Part 6 – Internal Control, perform procedures to obtain an understanding of internal control sufficient to plan the audit to support a low assessed level of control risk for the program. 2. Plan the testing of internal control to support a low assessed level of control risk for activities allowed or unallowed and perform the testing of internal control as planned. If internal control over some or all of the compliance requirements is likely to be ineffective, see the alternative procedures in §___.500(c)(3) of OMB Circular A-133, funded