---
kind: "section"
citation: "20 C.F.R. § 641.821"
title: "20"
number: "641.821"
heading: "What audit requirements apply to the use of SCSEP funds?"
url: "https://uscodex.org/cfr/20/641.821"
---

# §641.821. What audit requirements apply to the use of SCSEP funds?

- (a) Recipients and sub-recipients receiving Federal awards of SCSEP funds must follow the audit requirements in paragraphs [(b)](#b) and [(c)](#c) of this section that apply to their type of organization. As used here, Federal awards of SCSEP funds include Federal financial assistance and Federal cost-reimbursement contracts received directly from the Department or indirectly under awards by SCSEP recipients or higher-tier sub-recipients. (OAA [§ 503(f)(2)](/cfr/20/503.md?p=f-2)).
- (b) All governmental and nonprofit organizations that are recipients or sub-recipients must follow the audit requirements of OMB Circular A-133. These requirements are codified at 29 CFR parts [96](/cfr/29/part96.md) and [99](/cfr/29/part99.md) and referenced in [29 CFR 97.26](/cfr/29/97.26.md) for governmental organizations and in [29 CFR 95.26](/cfr/29/95.26.md) for institutions of higher education, hospitals, and other nonprofit organizations.
- (c)
  - (1) **The Department is responsible for audits of SCSEP recipients that are commercial organizations.**
  - (2) Commercial organizations that are sub-recipients under the SCSEP and that expend more than the minimum level specified in OMB Circular A-133 ($500,000, for fiscal years ending after December 31, 2003) must have either an organization-wide audit or a program-specific financial and compliance audit conducted in accordance with OMB Circular A-133.

## Notes

### Authority

Authority: 42 U.S.C. 3056-3056p.

### Source

Source: 75 FR 53812, Sept. 1, 2010, unless otherwise noted.