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carry out Its legs1 responsibilities, but requires that the agaric. <br />that performs or contracts for such additional audits must arrang <br /> <br />m <br />m <br /> <br />for funding the cost of such audits. Such additional audits includ <br />economy and efficiency audits, and program results audits. <br /> <br />FUNDING THE COST OF A SINGLE AUDIT <br /> <br />m The office of Management and Budget ts to issue regulations whic <br /> tnclude criteria for determining the appropriate charges to federa <br />m assistance programs for the cost of single audits. Nevertheless <br /> <br />m <br />m <br /> <br />the Act limits the proportion of the total audit cost that th <br />audited government can charge against its federal programs to th <br />same proportion which the amount of its total federal asststanc <br />.expenditures has to its total expenditures for the fiscal year. <br /> <br />Comment= For example, assume that a local government spend <br />$250,000 in federal funds out of total annual expenditures e <br />$],000,000. If the requtred single audit cost $10,000, the govern <br />mental entity could charge the federal programs a total of $2,58 <br />and must pay the remaining $7,500 from ~ts own funds. <br /> <br />WHAT TO EXPECT FROM THE FEDERAL GOVERNMENT IN THE COMING MONTHS <br /> <br />The Office of Management and Budget wtll have a key role In impl$ <br /> <br />m menttng the new requirements. First, it is expected to isst <br /> guidance to all the federal agencies on how the new law should t <br />m <br /> <br /> <br />