What you must do
In cases of continued inability or unwillingness to have a required Subpart F audit conducted, Federal agencies and pass-through entities must take appropriate action under § 200.339 (remedies for noncompliance — e.g., withholding payments, cost disallowance, suspension or termination of the award, suspension/debarment referral).
When it applies
Entity required to have a Subpart F audit has continued overdue or missing audits