Page:United States Statutes at Large Volume 110 Part 2.djvu/606

 110 STAT. 1398 PUBLIC LAW 104-156—JULY 5, 1996 "(C) uses net proceeds to maintain, improve, or expand the operations of the organization; "(15) 'pass-through entity' means a non-Federal entity that provides Federal awards to a subrecipient to carry out a Federal program; "(16) 'program-specific audit' means an audit of one Federal program; "(17) 'recipient' means a non-Federal entity that receives awards directly from a Federal agency to carry out a Federal program; "(18) 'single audit' means an audit, as described under section 7502(d), of a non-Federal entity that includes the entity's financial statements and Federal awards; "(19) 'State' means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, any instrumentality thereof, any multi- State, regional, or interstate entity which has governmental functions, and any Indian tribe; and "(20) 'subrecipient' means a non-Federal entity that receives Federal awards through another non-Federal entity to carry out a Federal program, but does not include an individual who receives financial assistance through such awards. "(b) In prescribing risk-based program selection criteria for major programs, the Director shall not require more programs to be identified as major for a particular non-Federal entity, except as prescribed under subsection (c) or as provided under subsection (d), than would be identified if the major programs were defined as any program for which total expenditures of Federal awards by the non-Federal entity during the applicable year exceed— "(1) the larger of $30,000,000 or 0.15 percent of the non- Federal entity's total Federal expenditures, in the case of a non-Federal entity for which such total expenditures for all programs exceed $10,000,000,000; "(2) the larger of $3,000,000, or 0.30 percent of the non- Federal entity's total Federal expenditures, in the case of a non-Federal entity for which such total expenditures for all programs exceed $100,000,000 but are less than or equal to $10,000,000,000; or "(3) the larger of $300,000, or 3 percent of such total Federal expenditures for all programs, in the case of a non- Federal entity for which such total expenditures for all programs equal or exceed $300,000 but are less than or equal to $100,000,000. "(c) When the total expenditures of a non-Federal entity's major programs are less than 50 percent of the non-Federal entity's total expenditures of all Federal awards (or such lower percentage as specified by the Director), the auditor shall select and test additional programs as major programs as necessary to achieve audit coverage of at least 50 percent of Federal expenditures by the non-Federal entity (or such lower percentage as specified by the Director), in accordance with guidance issued by the Director. "(d) Loan or loan guarantee programs, as specified by the Director, shall not be subject to the application of subsection (b).

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