(a) General. The audit provisions of 41 CFR part 29-70 shall apply
to Native American grantees. Until unified or single audit procedures
are promulgated and implemented for nonprofit entities, the Office of
the Inspector General shall be responsible for arranging and conducting
audits of Native American grantees that are not Indian tribal
governments.
(b) Audit reports. Upon receipt of a final audit report the
Inspector General will promptly transmit the audit report to the grantee
for a comment period not to exceed 30 days.
(c) Initial Determination. After the conclusion of the comment
period for audits provided the grantee, the Grant Officer shall make an
initial determination of the allowability of questioned costs or
activities. Such determination should be based on the Act, regulations
grants or other agreements under the Act.
(d) Informal resolution. Except as provided in section 164(f) of the
Act, the Grant Officer shall not revoke a grant, in whole or in part,
nor institute corrective action or sanctions against a grantee without
first providing the grantee with an opportunity to informally resolve
those matters contained in the Grant Officer's initial determination. If
the matters are informally resolved the Grant Officer shall notify the
parties in writing of the nature of the resolution, which shall
constitute the final determination, and may close the file.
(e) Final determination. The Grant Officer shall, not later than 180
days from the time the Inspector General issues the final approved audit
report, issue a final determination that:
(1) Indicates that efforts to informally resolve matters contained
in the initial determination pursuant to paragraph (a) of the section
have been unsuccessful.
(2) Lists those matters upon which the parties continue to disagree.
(3) Lists any modifications to the factual findings and conclusions
set forth in the initial determination.
(4) Lists any sanctions, and required corrective actions, including
any other alteration or modification of the plan,
grant, agreement or program intended by the Grant Officer.
(5) Sets forth any appeal rights.
