1. (a) Purpose. This section establishes DoD policy for obtaining audits at closeout of individual grants and cooperative agreements.

2. (b) Policy. Grants officers shall use their judgment on a case-by-case basis, in deciding whether to obtain an audit prior to closing out a grant or cooperative agreement (i.e., there is no specific DoD requirement to obtain an audit prior to doing so). Factors to be considered include:

   1. (1) The amount of the award.

   2. (2) DoD's past experience with the recipient, including the presence or lack of findings of material deficiencies in recent:

      1. (i) Audits of individual awards; or
      2. (ii) Systems-wide financial audits and audits of the compliance of the recipient's systems with Federal requirements, under OMB guidance in subpart F of 2 CFR part 200, where that guidance is applicable. (See § 22.715(a)(1)).

[63 FR 12164, Mar. 12, 1998, as amended at 85 FR 51244, Aug. 19, 2020]