Code of Federal Regulations Title 29. Labor § 29.99.230 Audit costs

(1) The cost of any audit under the Single Audit Act Amendments of 1996 (31 U.S.C. 7501 et seq.) not conducted in accordance with this part.

(2) The cost of auditing a non–Federal entity which has Federal awards expended of less than $300,000 per year (or $500,000 for fiscal years ending after December 31, 2003) and is thereby exempted under § 99.200(d) from having an audit conducted under this part. However, this does not prohibit a pass-through entity from charging Federal awards for the cost of limited scope audits to monitor its subrecipients in accordance with § 99.400(d)(3), provided the subrecipient does not have a single audit. For purposes of this part, limited scope audits only include agreed-upon procedures engagements conducted in accordance with either the AICPA's generally accepted auditing standards or attestation standards, that are paid for and arranged by a pass-through entity and address only one or more of the following types of compliance requirements:  activities allowed or unallowed;  allowable costs/cost principles;  eligibility;  matching;  level of effort;  earmarking;  and, reporting.