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OMB A-133 Audits and Issues NCURA Region VI & VII Spring Meeting April 17-20, 2005 Maureen Rhea, Internal Audit University of Washington.

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Presentation on theme: "OMB A-133 Audits and Issues NCURA Region VI & VII Spring Meeting April 17-20, 2005 Maureen Rhea, Internal Audit University of Washington."— Presentation transcript:

1 OMB A-133 Audits and Issues NCURA Region VI & VII Spring Meeting April 17-20, 2005 Maureen Rhea, Internal Audit University of Washington

2 OMB Circular A-133 Audits & Issues Agenda – A-133/Single Audit – Audit Process Overview – Areas of Audit Scrutiny

3 What is A-133? A-21? A-110? OMB Circular A-133 (Single Audit) – Federal Audit Regulations OMB Circular A-21 – Grantee Cost Principles OMB Circular A-110 – Administration of Grants

4 Purpose of Circular A-133 Establish standards for obtaining consistent and uniform audits of organizations expending Federal awards Annual audit required if entity receives federal funds of $500,000 or more in a year

5 Audit Process Who Audits A-133? External Auditors Governmental Audit Agencies (e.g., State Auditors) Private Audit Firm (e.g., KPMG, PWC)

6 Audit Process Auditor 1. Planning 2. Fieldwork 3. Summary & Final Report 4. Follow up Client 1. Entrance Conference 2. Interviews, provide documents, investigate exceptions 3. Respond to findings (negotiation, corrective action plan) 4. Demonstrate findings have been addressed

7 What Types of Issues are Reported? Inadequate internal controls – Authorization, separation of duties, documentation Noncompliance with laws & regulations – OMB Circulars A-21, A-110, award terms & conditions Questioned costs exceeding $10,000

8 Auditor Focus Allowability of expenses – How does expense benefit the specific grant? – Is there supporting documentation? – Authorized by PI or person with specific knowledge of grant?

9 Auditor Focus Allowability of Expenses – Salaries/Personnel Administrative & Clerical Salaries Level of Effort - if paid on the grant, work on the grant Salary certification and effort reports not signed/filed – Equipment – Travel – Office Supplies

10 Auditor Focus Allocation of Expenses – What is the allocation plan? – Is it documented? – Is it reasonable? – Is it reviewed occasionally?

11 Auditor Focus Allocation of Expenses – Rent – Lab supplies – Gift Certificates

12 Auditor Focus Cost Sharing – Has cost sharing promise been met? Mandatory – required by statute or as a condition of award Committed – not required by statute or as a condition of award – cost sharing is quantified (often as a percentage of effort) in the proposal or budget justification without corresponding funding request

13 Auditor Focus Cost Sharing – Market value vs. depreciation cost (GEAR UP)

14 Auditor Focus Program Income – “Gross income earned by the University that is directly generated by a sponsored activity or earned as a result of an award.” (OMB Circular A-110) – Program income identified in proposal? – Plan in place to use program income? – Use complies with sponsor regulations?


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