PART 4 - AGENCY
PROGRAM REQUIREMENTS
INTRODUCTION
For each Federal
program (except R&D and SFA) included in this Supplement, Part 4 provides
"I. Program Objectives" and "II. Program Procedures." Also, Part 4 provides
information about compliance requirements specific to a program in "III.
Compliance Requirements." Finally, Part 4 also provides "IV. Other Information",
when there is other useful information pertaining to the program that
does not fit in sections I - III. For example, when a program allows funds
to be transferred to another program, subsection IV will provide guidance
on how those funds should be treated on the Schedule of Expenditures of
Federal Awards and Type A program determinations.
When any of five
types of compliance requirements ("A. Activities Allowed or Unallowed,"
"E. Eligibility," "G. Matching, Level of Effort, Earmarking," "L. Reporting,"
and "N. Special Tests and Provisions") are applicable to a program included
in this Supplement, Part 4 will always provide information specific to
the program. The auditor should look to Part 3 for a general description
of the compliance requirements, audit objectives, and suggested audit
procedures and to Part 4 for information about the specific requirements
for a program. An exception is that for "N. Special Tests and Provisions;"
all such information is included in Part 4.
The other nine types
of compliance requirements generally are not specific to a program and
therefore are usually not listed in Part 4. However, when one of these
other nine types of compliance requirements have information specific
to a program, this specific information will be provided with the program
in Part 4.
When a requirement
is marked as "Not Applicable," it means either that there are no compliance
requirements or the auditor is not required to test compliance.
In developing the
audit procedures to test compliance with the requirements for a Federal
program, the auditor should first look to Part 2, Matrix of Compliance
Requirements, to identify which of the 14 types of compliance requirements
described in Part 3 are applicable and then look to Parts 3 and 4 for
the details of the requirements. The descriptions of the compliance requirements
in Parts 3 and 4 are generally a summary of the actual compliance requirements.
The auditor should refer to the referenced citations (e.g., laws and regulations)
for the complete compliance requirements.
For R&D and SFA,
Part 5 is the equivalent of Part 4; therefore the auditor will need to
consider Parts 2, 3, and 5 in developing the audit program for these programs
(program clusters).