In defining audit, Circular A-73 emphasizes that its scope should encompass accuracy of financial statements, compliance with applicable laws and regulations, economic use of funds, and program effectiveness. Agencies are responsible for conducting audits of their programs according to standards issued by the Comptroller General. Audit organizations should be located outside the program management structure and report to a high management level in order to preserve their independence. Each agency must establish procedures to periodically review its programs and determine if an audit is required. Factors which should be considered in establishing audit priorities are outlined. In the interest of economy and efficiency, each agency should consider cross-servicing arrangements with other agencies, particularly when two or more agencies may be funding programs in a single organization. Agencies should also coordinate their audit requirements with those of State and local governments and nonprofit organizations. Based on these objectives, agency audit plans should be prepared at least annually and made available to State and local governments to facilitate coordination. Policies on the public release of audit reports must be formulated which comply with applicable laws such as the Freedom of Information Act. A 1979 revision of the circular amended provisions on followup procedures to specify the key elements that each agency's monitoring system must contain to resolve audit recommendation in a prompt and proper manner. These included semiannual reports to an agency head on all audit reports over 6 months old and a maximum of 6 months to determine agency action on audit recommendations. Federal agencies who award grants to State and local governments must submit the State and local portion of their audit plan to OMB prior to the fiscal year it is to be implemented. A 1977 memorandum from the President on sharing Federal audit plans and the text of the 1979 revision are appended.