Code of Federal Regulations Title 2. Grants and Agreements § 2.200.25 Cooperative audit resolution

(a) A strong commitment by Federal agency and non–Federal entity leadership to program integrity;

(b) Federal agencies strengthening partnerships and working cooperatively with non–Federal entities and their auditors;  and non–Federal entities and their auditors working cooperatively with Federal agencies;

(c) A focus on current conditions and corrective action going forward;

(d) Federal agencies offering appropriate relief for past noncompliance when audits show prompt corrective action has occurred;  and

(e) Federal agency leadership sending a clear message that continued failure to correct conditions identified by audits which are likely to cause improper payments, fraud, waste, or abuse is unacceptable and will result in sanctions.