When receiving financial assistance from the Department of Energy (DOE) there are certain regulatory rules that must be followed. One important regulation for for-profit financial assistance recipients is 10 CFR 600.316. This regulation states that any for-profit assistance that exceeds $500,000 or more in a year under Doe Financial Assistance awards must have a compliance audit made for that year by independent auditor, regardless of when the expenditures are presented to DOE for reimbursement. Other stipulations include:
- The $500,000 includes any pre-award costs
- When determining whether the $500,000 is met , recipients should assess the amount of DOE fund expended under the award and shall not include any cost-sharing amounts
- If a for-profit has multiple DOE awards and one or more of the awards have expenditures of $500,000, only the awards with $500,000 in expenditures need a compliance audit
- If a for-profit has total expenditures of $500,000 or more but do not have a single award with expenditures totaling $500,000 they are required to have a compliance audit of the awards in the aggregate
- These audit requirements are effective for all for-profit recipients’ 2011 fiscal years and beyond
- Audits for fiscal year 2011 only are due September 30, 2012
- Compliance audits must be submitted within 6 months of the recipients fiscal year-end dates, to the appropriate DOE Contracting Officer as well as the DOE Office of the Chief Financial Officer
For any other questions regarding Regulation 10 CFR 600.316 feel free to contact our office or click on the links below to get a more in depth explanation.
DOE Audit Guidance: For-Profit Financial Assistance Awards Part 1
DOE Audit Guidance: For-Profit Financial Assistance Awards Part 2
DOE Audit Guidance: For-Profit Financial Assistance Awards Part 3
DOE Audit Guidance: For-Profit Financial Assistance Awards Part 4