A-133 Audit
Lynette Arias
Director, Sponsored Projects
Administration (SPA)
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
Audience
This course is intended for “department
administrative staff”—including department
administrators, division managers,
department fiscal managers, department
effort coordinators, etc.
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?
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
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 nonprofit organizations expending Federal
awards.
 One annual audit, as opposed to each agency
conducting their own individual audits
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
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
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
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
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
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
Report Schedules
See attached sample page from report
“schedules”
FY06 A-133 Audit Report on SPA website:
http://www.ohsu.edu/research/rda/spa/doc
s/ohsu_a133_06.pdf
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
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
General Testing
Service Centers
Fixed Assets
Federal Agency Audits during FY
Cash Transactions
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 #.
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
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
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)
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)
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)
Grant Testing:
Cost Transfers
Copies of all cost transfers on test projects
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
Grant Testing:
Earmarking/Restrictions
Summary listing of all test projects and
indication of if restrictions exist
Restriction supporting documentation on
test projects
Grant Testing:
Fixed Assets
Asset inventory supporting documentation
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
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
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
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/spa
a133.shtml
Questions?