10.16 - Annual Audit Policy
When the University expends $750,000 or more of Federal awards during the fiscal year, a single or program-specific audit must be conducted for that fiscal year. The University may simultaneously be a recipient, a subrecipient, and a contractor. Federal awards expended as a recipient or a subrecipient are subject to audit. The determination of when a Federal award is expended is based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the University to comply with Federal statutes, regulations, and the terms and conditions of Federal awards.
Single Audit
When the University expends $750,000 or more in Federal awards during the fiscal year, a single audit conducted in accordance with 2 CFR Part §200.514 Scope of audit must be performed except when it has the option to and elects to have a program-specific audit conducted in accordance with the paragraph below.
Program-Specific Audit
When the University expends Federal awards under only one Federal program (excluding R&D) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of the auditee, the University may elect to have a program-specific audit conducted in accordance with 2 CFR Part §200.507 Program-specific audits.
When the University expends less than $750,000 of Federal awards during the fiscal year in Federal awards, it is exempt from Federal audit requirements for that year, but records will be made available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO).
Schedule of expenditures of Federal awards
The University will be responsible for preparing a schedule of expenditures of Federal awards for the fiscal year, which will include the total Federal awards expended as determined in accordance with 2 CFR Part §200.502. At a minimum, the schedule will:
- List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name.
- For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity will be included.
- Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. For a cluster of programs also provide the total for the cluster.
- Include the total amount provided to subrecipients from each Federal program.
- For loan or loan guarantee programs, identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule.
- Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not The University elected to use the 10% de minimis cost rate.
Audit services
In procuring audit services, the University will follow the procurement standards prescribed by the Procurement Standards in 2 CFR Part §200.317 through §200.327 (See Federal Procurement Standards Policy). In requesting proposals for audit services, the objectives and scope of the audit must be made clear, and the non-Federal entity must request a copy of the audit organization’s peer review report which the auditor is required to provide under GAGAS. Factors to be considered in evaluating each proposal for audit services include the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results of peer and external quality control reviews, and price.
Reporting package submission
As required by 2 CFR Part §200.512, once the audit is completed, it is the responsibility of the University to ensure that the data collection form and the reporting package are electronically submitted to the Federal Audit Clearinghouse. The audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.