Audits
As a recipient of Federal and other sponsor funds, the University is subject to a variety of audits and reviews. the purpose of these activities is to provide evidence that proper stewardship of sponsor funds is in place. the two principal types of audits are:
- Financial Statement Audit - this type of audit looks at the financial representations of the University's financial system and involves a thorough review of the University's official books of record, financial policies, accounting system transactions, and internal controls.
- Compliance Audit - Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, requires periodic review of the University's ability to comply with a total of fourteen different financial and other areas, as covered in various regulations. the compliance points covered under an A-133 audit are:
| Issue | Test(s) Performed |
|---|---|
Activities allowed or unallowed | Allocability of activities (e.g.,expenses) |
Allowable costs/cost principles | Allowability of expenses |
Cash management | Control over advances & interest income |
Davis-Bacon Act | Prevailing construction wage rates |
Eligibility | Who can participate and at what rate |
Equipment and real property management | Records management, inventory, and dispositions |
Matching, level of effort, earmarking | Achieved levels |
Period of availability of Federal funds | Obligations within award period |
Procurement and suspension and debarment | Conformance with laws, regulations, and OMB Circular A-110 standards |
Program Income | Adherence to usage requirements |
Real property acquisition and relocation assistance | Acquisition, appraisal, negotiation, and relocation requirements followed |
Reporting | Timeliness, accuracy, and completeness |
Subrecipient monitoring | Identification, monitoring, and evaluation |
Special tests and provisions | Adherence to unique program requirements |
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Other Audits and Reviews - Most sponsors reserve the right to undertake additional audits and reviews, which can include pre-award or post-award site visits covering programmatic and/or financial topics, property system reviews, small business utilization reviews, and reviews involving safety issues and animal and human subject usage.
Recipient departments often play a major or supporting role in audit activities by providing required documentation, facility tours, programmatic progress updates, etc. In the event such involvement by academic departments becomes necessary, appropriate prior contact will be made by the Office of Research Administration and/or Research Accounting, whenever possible.
Last modified: September 10, 2007 15:10:07