ROLE OF EXTERNAL AUDITS, REVIEWS, SITE VISITS, OR INVESTIGATIONS
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As a recipient of government funds, the University is responsible for stewardship of these funds and is therefore subjected to frequent visits by various external agencies. As a public institution, most records of the University are open to external review. The purpose of these visits may vary from providing oversight and technical assistance to ensuring compliance and achievement of stated goals. Unfavorable outcomes resulting from the reviews could result in disallowances of claimed costs, termination of agreement, and/or the University not being awarded future contracts or grants based on contractor responsibility or past performance.
All audits, site visits, reviews, or investigations initiated by the sponsoring agency should be routed through Post-Award. If a PI or department is notified by an external agency of an impending financial audit or investigation, they should immediately contact the Post-Award office. An entrance meeting will be scheduled with the controller to discuss the scope and nature of the audit or investigation. Post-Award office and The Office of the Vice President for Research or HSC Office of the Vice President for Translational Research should be notified immediately of any other audits or investigations.
Financial Compliance Audits
The scope of a financial compliance audit is usually based on compliance with sponsoring agency regulations and guidelines (FAR’s and OMB Circulars A-21, A-110, and A-133) as stipulated in the sponsored agreement. These audits commonly include a review of: internal controls, expenditure supporting documentation, procurement, property control, fiscal management, university business policies and procedures, etc. Reviews are usually performed by an auditor of the awarding agency or cognizant agency. Annually, a financial audit will be performed.
Site Visits
The main focus of a site visit is usually related to technical/programmatic progress and issues. A site visit could involve financial processes as well. A site visit is usually performed by the program office of the sponsoring agency.
Investigations
The focus of an investigation is generally fraud or misconduct in research. The funding agency becomes aware of fraud or misconduct through a whistle blower or a university internal audit. An investigation is usually conducted by an auditor or through the agency’s investigator office or office of the inspector general.