PART 4 - AGENCY PROGRAM REQUIREMENTS
For each Federal program (except R&D and SFA) included in this Supplement, Part 4 provides
"I. Program Objectives" and "II. Program Procedures." Also, Part 4 provides information about
compliance requirements specific to a program in "III. Compliance Requirements." Finally, Part
4 also provides "IV. Other Information", when there is other useful information pertaining to the
program that does not fit in sections I - III. For example, when a program allows funds to be
transferred to another program, subsection IV will provide guidance on how those funds should
be treated on the Schedule of Expenditures of Federal Awards and Type A program
When five types of compliance requirements ("A. Activities Allowed or Unallowed," "E.
Eligibility," "G. Matching, Level of Effort, Earmarking," "L. Reporting," and "N. Special Tests
and Provisions") are applicable to a program included in this Supplement, Part 4 will always
provide information specific to the program. The auditor should look to Part 3 for a general
description of the compliance requirements, audit objectives, and suggested audit procedures and
to Part 4 for information about the specific requirements for a program. An exception is that for
"N. Special Tests and Provisions;" all such information is included in Part 4.
The other nine types of compliance requirements generally are not specific to a program and
therefore are usually not listed in Part 4. However, when one of these other nine types of
compliance requirements have information specific to a program, this specific information will be
provided with the program in Part 4.
When a requirement is marked as "Not Applicable," it means either that there are no compliance
requirements or the auditor is not required to test compliance.
In developing the audit procedures to test compliance with the requirements for a Federal
program, the auditor should first look to Part 2, Matrix of Compliance Requirements, to identify
which of the 14 types of compliance requirements described in Part 3 are applicable and then look
to Parts 3 and 4 for the details of the requirements. The descriptions of the compliance
requirements in Parts 3 and 4 are generally a summary of the actual compliance requirements.
The auditor should refer to the referenced citations (e.g., laws and regulations) for the complete
For R&D and SFA, Part 5 is the equivalent of Part 4; therefore the auditor will need to consider
Parts 2, 3, and 5 in developing the audit program for these programs (program clusters).
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