32 CFR §22.825

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)).