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Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 / Rules and Regulations
180 as well as individual Federal agency suspension and debarment regulations in title 2 of the Code of Federal Regulations.

9. In 200.318, revise paragraph e to read as follows:

assistance programs and indirect cost rate proposals are contained in appendices V, VI and VII to this part.

12. In 200.509, revise paragraph a to read as follows:

Deidre A. Harrison, Deputy Controller Acting.

200.509

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200.318

a Auditor procurement. In procuring audit services, the auditee must follow the procurement standards prescribed by the Procurement Standards in 200.317 through 200.327 of subpart D
of this part or the FAR 48 CFR part 42, as applicable. In requesting proposals for audit services, the objectives and scope of the audit must be made clear and the non-Federal entity must request a copy of the audit organizations peer review report which the auditor is required to provide under GAGAS.
Factors to be considered in evaluating each proposal for audit services include the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results of peer and external quality control reviews, and price. Whenever possible, the auditee must make positive efforts to utilize small businesses, minority-owned firms, and womens business enterprises, in procuring audit services as stated in 200.321, or the FAR 48 CFR part 42, as applicable.

13. In 200.514, revise paragraph c4 to read as follow:

General Procurement standards.

e To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or interentity agreements where appropriate for procurement or use of common or shared goods and services. Competition requirements will be met with documented procurement actions using strategic sourcing, shared services, and other similar procurement arrangements.

10. In 200.332, revise paragraph d4 to read as follows:
200.332
entities.

Requirements for pass-through

d
4 The pass-through entity is responsible for resolving audit findings specifically related to the subaward and not responsible for resolving crosscutting findings. If a subrecipient has a current Single Audit report posted in the Federal Audit Clearinghouse and has not otherwise been excluded from receipt of Federal funding e.g., has been debarred or suspended, the passthrough entity may rely on the subrecipients cognizant audit agency or cognizant oversight agency to perform audit follow-up and make management decisions related to cross-cutting findings in accordance with section 200.513a3vii. Such reliance does not eliminate the responsibility of the pass-through entity to issue subawards that conform to agency and awardspecific requirements, to manage risk through ongoing subaward monitoring, and to monitor the status of the findings that are specifically related to the subaward.

11. In 200.416, revise paragraph c to read as follows:
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200.416 Cost allocation plans and indirect cost proposals.

c The requirements for development and submission of cost allocation plans for central service costs and public
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200.514

Auditor selection.

Scope of audit.

c
4 When internal control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described in paragraph c3 of this section are not required for those compliance requirements. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective internal control.

14. Revise Appendix IX to Part 200 to read as follows:
Appendix IX to Part 200Hospital Cost Principles Until such time as revised guidance is proposed and implemented for hospitals, the existing principles located at 45 CFR part 75 Appendix IX, entitled Principles for Determining Cost
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Applicable to Research and Development Under Grants and Contracts with Hospitals, remain in effect.

BILLING CODE 311001P

DEPARTMENT OF AGRICULTURE
Farm Service Agency 7 CFR Parts 761
Docket ID USDA20190007
RIN 0560AA16

Farm Loan Programs, Debt Settlement Farm Service Agency, USDA.
Correcting amendments.

AGENCY:
ACTION:

The Farm Service Agency FSA amended the Farm Loan Programs Debt Settlement regulations in through a final rule published in the Federal Register on June 17, 2020. This correction is to remove a certain word that erroneously appeared in the regulation.

SUMMARY:

DATES:

Effective: February 22, 2021.

Bill Cobb; telephone 202 7204671; email:
Bill.Cobb@usda.gov. Persons with disabilities who require alternative means for communication should contact the USDA Target Center at 202
7202600 voice.
SUPPLEMENTARY INFORMATION: This document corrects the regulations in 7
CFR part 761, which was implemented in the final rule that was published in the Federal Register on June 17, 2020
85 FR 3667036714. This correction is to remove the word or at the end of the sentence and to end the sentence with a period in 7 CFR 761.403c3.
FOR FURTHER INFORMATION CONTACT:

List of Subjects in 7 CFR Part 761
Accounting, Administrative practice and procedure, Loan programsagriculture, Reporting and recordkeeping requirements, Rural areas.
Accordingly, 7 CFR part 761 is corrected by making the following correcting amendment:
PART 761FARM LOAN PROGRAMS;
GENERAL PROGRAM
ADMINISTRATION
1. The authority citation for part 761
continues to read as follows:

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

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