Dear Business and Grant Managers,
In accordance with the U.S. Office of Management and Budget (OMB) Uniform Guidance 2 CFR 200.501, the University of Vermont is required to have a Single Audit of federal awards each fiscal year. In order to comply with this, UVM engages an outside audit firm to perform the audit, currently KPMG. Uniform Guidance (UG) part 200, Subpart F describes the non-federal entity’s responsibilities for managing federal assistance programs and the auditor’s responsibility with respect to the scope of the audit. Auditors are required to follow the provisions of 2 CFR part 200 Subpart F and the accompanying Compliance Supplement.
An updated Compliance Supplement is issued each year by OMB and identifies compliance requirements that the Federal Government expects to be considered as part of the Single Audit. The Supplement provides information to enable auditors to understand the Federal program’s objectives and compliance requirements and focuses the auditor to test the compliance requirements most likely to cause improper payments, fraud, waste, abuse or generate audit findings for which the Federal awarding agency will take sanctions.
The Compliance Supplement identifies a total of 12 compliance requirements and mandates that a maximum of 6 of the 12 are required to be tested by auditors for certain programs; the maximum mandated for the Research & Development cluster (which includes sponsored projects) is 7. The specific requirements to be tested for R&D include categories such as Allowable Costs/Cost Principles and Activities Allowed or Unallowed (treated as one requirement), Cash Management, Subrecipient Monitoring, and Equipment/Real Property Management among others.
The results of the Single Audit and any findings are contained in the Schedule of Expenditures of Federal Awards (SEFA) which is published each year as part of UVM’s Financial Statement. These results are also uploaded and available in the Federal Audit Clearinghouse and are used by the Federal Government and other institutions as part of the risk assessment process prior to awarding grant funds.
Because UVM’s R&D cluster’s (which includes sponsored projects) audits resulted in no findings and earned “low audit risk” ratings for FY17 and 18, KPMG is auditing other major University federal programs for FY19. So it is an unusually “audit light” summer for us, but SPA is still required to prepare the SEFA, verify that it reconciles to UVM’s accounting system and accurately represents federal award spending for the fiscal year, upload it to the Federal Audit Clearinghouse and publish it with the FY19 Financial Statement.
If you would like more information or have questions please feel free to contact me.
Marcy Whittle | Senior Compliance Analyst
University of Vermont
Sponsored Project Administration
217 Waterman | 85 South Prospect Street
Burlington, VT 05405-0160
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