In General. Except as provided in §B of this regulation, the Department's Audit Division shall conduct the audits required by this chapter. Local Governments. Subject to §B(2) of this regulation, the Audit Division need not conduct an audit of contracts with local governments for which audits are conducted in accordance with the federal Single Audit Act, 31 U.S.C. §7501 et seq. If audits conducted under the Single Audit Act do not satisfy the requirements of the Department, the Audit Division shall conduct such further auditing as it considers necessary under the circumstances.