9.11 Audits
9.11.1. Overview
Sponsors presume that the University will expend funds for the purposes for which they were given and in accordance with any terms and conditions set forth in the award document. Sponsors generally reserve the right to audit the University’s financial records for sponsor awards and, in some cases, may audit the project’s scientific records and data. If a PI/PD or department is contacted directly regarding any type of audit, OSP and the Internal Audit office should be informed immediately.

9.11.2 Pre-Award Audits
Occasionally a sponsor may require an audit before the issuance of an award. Such pre-award audits generally involve responses to federal requests for proposals that will result in the issuance of a contract that is more than $500,000 per year. Faculty should contact OSP if they receive a request for a pre-award audit.

9.11.3 Post-Award and System Audits
The “Single Audit Act of 1984″ and the OMB Circular A-133 require an annual audit by the University’s certified public accountants, as required. Any federal agency, however, can also audit its specific awards. These audits tend to be efforts to determine whether the University is managing grants and contracts in accordance with federal laws and regulations. PAFO is responsible for managing post-award and system audits, with the support of the Internal Audit office and OSP.

9.11.4 Audit Request
PAFO is the focal point for the coordination and conduct of financial audits of sponsored programs. Upon notification of an audit, PAFO will inform the Comptroller, Internal Audit, the Office of General Counsel (if appropriate), OSP, the department business office, and the PI/PD of the anticipated audit. Upon being contacted by PAFO, the Business Office will designate an individual with knowledge of program expenditures for the purpose of answering questions that may arise during the audit. The Business Office must also notify and/or arrange for the PI/PD or other individuals at the department or school-level to be available for an interview, if requested by the auditors.

9.11.5 Entrance Conference
Auditors will often request an entrance conference. If the PI/PD and Business Office representative need to be present, they will be notified by PAFO, and representative from the PAFO will act as the liaison between the auditors and all other University areas for the purpose of retrieving documentation and/or contact with department personnel.

9.11.6 Documentation Requests
Auditors must provide a list of required documentation identifying each transaction to be reviewed.

9.11.7 Exit Conference and Audit Reports
An exit conference is normally conducted at the close of any audit.