A-133 Audit

1. A-133 Audit Lynette Arias Director, Sponsored Projects Administration (SPA)

2. Introduction • A-133 Audit • “The Annual Review” • This course examines the A-133 audit cycle and explores the distribution of responsibilities and oversight within the Sponsored Projects Administration (SPA) office

3. Audience • This course is intended for “department administrative staff”—including department administrators, division managers, department fiscal managers, department effort coordinators, etc.

4. Summary • What exactly is the A-133 audit? • Why is it important to understand the scope of the A-133 audit? • When is the A-133 audit performed? • What happens during A-133 audit?

5. Annual FY Audit • The A-133 audit is a subset of the annual fiscal year audit • FY audit process begins in April/May with preliminary audit • FY audit includes grant revenue testing

6. What is the A-133 Audit? • OMB Circular A-133: Audits of States, Local Governments and Non-Profit Organizations • Single Audit Act of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156. • Sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of States, local governments, and non-profit organizations expending Federal awards. • One annual audit, as opposed to each agency conducting their own individual audits

7. Why is it important to understand the scope? • The A-133 is submitted to the Department of Health and Human Services (DHHS), OHSU’s cognizant agency • Most of OHSU’s sponsored project dollars come from DHHS • DHHS is expected to scrutinize OHSU business procedures most closely

8. When is the A-133 performed? • Annually • Starts with planning in the Spring • Actually commences during the FY financial audit July/August • Continues into Fall--timing varies slightly each year • Performed by external auditors • Currently KPMG

9. What happens during the A-133 Audit? • Auditors provide list of “control overview documents” • Provide auditors “The Schedule” • Provide auditors set of reports • Provide auditors policies and procedures • Undergo general testing • Undergo grant testing • Review student financial aid • Follow filing process

10. Control overview documents • These documents are provided by independent audit firm, KPMG International, at the beginning of each audit to be reviewed and updated by OHSU • Control overview documents include: • C-AB Activities Allowed • C-C Cash Management • C-F Equipment and Real Property • C-G Matching • C-H Period of Availability • C-I Procurement • C-J Program Income • C-L Reporting • C-M Subrecipient Monitoring

11. What happens during the A-133 Audit? • Provide auditors “The Schedule,” a listing by project of all federal sponsored project expenditures • Direct – received directly from a federal agency • Pass-through – received from an agency that received federal funding and is passing that funding through to OHSU • Subrecipient – “subout” expenditures

12. What happens during the A-133 Audit? • Provide auditors (Cont.) • All projects listed by Catalog of Federal Domestic Assistance (CFDA) Program & Number • Grouped by “clusters”: • Research & Development (R&D) • Student Financial Aid • Other

13. Report Schedules • See attached sample page from report “schedules” • FY06 A-133 Audit Report on SPA website: http://www.ohsu.edu/research/rda/spa/docs/ohsu_a133_06.pdf

14. Provide Reports • Provide auditors set of reports Vendors paid over $100,000 in FY • Listing of all active projects in FY-period of availability • Listing of personnel paid over the cap • Listing of federally funded construction projects • OGA/GL revenue and expenditure reconciliation • Federal cash transaction reports • Fixed Assets disposition reports

15. Provide Updated Policies and Procedures • General OHSU • Affirmative Action • Purchasing and Contracting • Sponsored Projects • Fixed Assets • F&A Rate and Cost Accounting Standards (CAS) DS-2 • Services Centers and Recharging

16. General Testing • Service Centers • Fixed Assets • Federal Agency Audits during FY • Cash Transactions

17. Specific Award Testing • Generally 10-20 projects are selected for detailed grant testing. • Total dollar amount must cover a certain scope of overall federal funding to OHSU. • Judgmental sample selected by auditors. • Relates to major programs – by CFDA #.

18. Grant Testing • Award Documents and Reports, including cost sharing • Expenditures – Overall and Program Income • Expenditures – Payroll / Effort Certification • Subrecipients • Cost Transfers • F&A Reconciliations • Earmarking / Restrictions • Fixed Assets

19. Grant Testing: Award Documents and Reports • Award Notice or Contract • Award Proposed Project Questionnaire (PPQ), indicating Program Income and Cost Sharing • Financial Status Report (FSR) and reconciling Oracle Award or Project Status Report • Award Technical Progress Report • Other reports required by terms and conditions of the award

20. Grant Testing: Expenditures – Overall • OGA Award Status Report • OGA Project Status Report • OGA Project Expenditure Details Report • Program Income OGA Award Status Report • Program Income OGA Project Status Report • Program Income OGA Project Expenditures Detail Report • Expenditure backup on selected non-payroll expenditures (AP detail)

21. Grant Testing: Expenditures – Payroll/Effort • Reconciliation between OGA and Payroll • OGA Project Expenditures Details Report for payroll expenditures • Detail Payroll Expenditures Report (DEPR) • Manual JE’s for Payroll • Payroll expenditure backup • HR File Review • Effort Certification Statements (ECS)

22. Grant Testing: Subrecipients • OGA Project Expenditure Details Report • Summary listing of all subrecipients under test projects • Subrecipient contract document and amendments • Subrecipient invoice(s) • Subrecipient A-133 (if applicable)

23. Grant Testing: Cost Transfers • Copies of all cost transfers on test projects

24. Grant Testing: F&A Reconciliations • F&A reconciliation summary • F&A exclusions • OGA screen shots of F&A rate in system • Reconciliation of F&A on test projects

25. Grant Testing:Earmarking/Restrictions • Summary listing of all test projects and indication of if restrictions exist • Restriction supporting documentation on test projects

26. Grant Testing:Fixed Assets • Asset inventory supporting documentation

27. Student Financial Aid • Annual • Schedule of Federal Financial Assistance Expenditures • US DoEd Funding Authorization Letters and Institutional Worksheets • Program Participation Agreement & US DoEd Approval Letter • Status of Accreditation Letter • There are also test year procedures undergone every three years • For example, SFA procedures, Direct Loan Draw History, or Perkins Cancellations

28. Filing Process • Rep Letter • Final Financials • Final SEFA • Data Collection Form – online submission to clearinghouse • Online submission to clearinghouse • Hard copy submission packet to clearinghouse • EZ Audit submission with final pdf of full A-133 report

29. How can Departments help with the A-133 Audit? • Adhere to all terms and conditions • Adhere to all Federal regulations, policies, and procedures • Adhere to OHSU policies and procedures • Doing this as you go along helps streamline the A-133 process • And ensures a clean audit and compliance with all policies and procedures

30. FY06 Audit • FY06 A-133 Audit recently filed • No findings • No questioned costs • Complete A-133 audit reports are posted on the SPA webpage: http://www.ohsu.edu/research/rda/spa/spaa133.shtml

31. Questions?