A recipient of financial assistance shall provide RUS with an audit for each year, beginning with the year in which a portion of the financial assistance is expended, in accordance with the following:
(a) If the recipient is a for-profit entity, a Telecommunications or Electric borrower, or any other entity not covered by the following paragraph, the recipient shall provide an independent audit report in accordance with 7 CFR part 1773, ``Policy on Audits of RUS Borrowers.''
(b) If the recipient is a State or local government, or non-profit organization, the recipient shall provide an audit in accordance with subpart F of 2 CFR part 200, as adopted by USDA through 2 CFR part 400. [64 FR 14357, Mar. 25, 1999; 64 FR 25422, May 12, 1999, as amended at 79 FR 76001, Dec. 19, 2014]