§ 164.314(a)(2)(ii): The covered entity is in compliance with paragraph (a)(1) of this section if it has another arrangement in place that meets the requirements of § 164.504(e)(3).

Audit Inquiry

Does the entity have policies and procedures in place regarding other arrangements to have in place (e.g., a Memorandum of Understanding if the covered entity and business associate are government agencies) that meet the requirements of 45 CFR § 164.504(e)(3)?

Obtain and review documentation of the entity’s other arrangements with business associates. Evaluate and determine if the other arrangements meet the requirements of 45 CFR § 164.504(e)(3).