Audit

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A-133 Audit Reports

The Federal Government requires an annual audit of non-Federal entities expending $500,000 or more in Federal awards. The standards for this audit are contained in Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The Office of the Auditor General performs an annual audit of Arizona State University as part of the State of Arizona A-133 Single Audit. The results of that audit are posted here as the Single Audit Reporting Package.

The IGnet Single Audit Library provides additional information related to the A-133 Single Audit.

For more information about ASU’s A-133 Audit Report, including SEFA content:
Michele Wrapp, Grant & Contract Accounting
Mail code 3503, Michele.Wrapp@asu.edu or 480.965.4771

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National Audit Trends

View audit findings at other universities across the US.

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Audit readiness

Government Auditing Standards (the "Yellow Book") contains standards followed by auditors of government organizations. These standards pertain to auditors' professional qualifications, the quality of audit effort, and the characteristics of professional and meaningful audit reports. They are also sometimes referred to as "generally accepted government auditing standards" (GAGAS).

Frequently Asked Questions on Payroll Audits

How are sponsored project payroll expenditures audited?

Federal auditors refer to audits of payroll expenditures as labor cost claimed audits. In these audits auditors review university policy and procedure governing payroll and effort certification. They assess the extent to which policy and procedures provide guidance to ensure labor charges claimed meet Federal and sponsored requirements. Then they conduct test work to determine if policy and procedures are followed and are effective at ensuring compliance with requirements.

In an audit, auditors reconcile expenditure reports submitted to the sponsoring agency with accounting system and human resource system records. Specific transactions are selected to determine the validity of the individual charges. The amount charged is recalculated using the employee’s institutional base salary as documented in the personnel file and percentage of effort as certified on the Effort Report. Benefit charges are checked by recalculating charges against university benefit rates schedules.

Do auditors test Effort Reports?

Yes, auditors may verify the validity of the effort certification by reviewing documentation of employee work activities or conducting interviews.

What kind of materials might be reviewed?

  • Faculty class schedules to determine how many classes were taught
  • Research award documents to determine how much time was pledged to funded research
  • Technical report submission to determent how much time was spent working on research projects
  • Proposal submissions to determine how much time was invested in preparing proposals
  • Faculty calendars to determine if work was being conducted

What questions might be asked in an interview to determine the accuracy of effort certification?

  • What classes were taught?
  • What university commitments were conducted?
  • What other project commitments did the employee have?
  • What proposals were prepared during the period?
  • What trips were taken?
  • What time off was taken?
  • And other questions to determine an employee’s ability to have dedicated the time certified.

How should a principal investigator prepare for an audit?

Audit preparation takes place throughout the entire life of the project. It consists of managing the project, reviewing project accounts to ensure all charged costs support the project’s scope of work, becoming familiar with sponsor requirements, and adhering to university policy.

What should employees do in an auditor interview?

  • Answer all questions honestly.
  • Answer questions to the best of your ability. It is ok if you don’t know the answer. The university audit liaison will arrange to have your answer provided to the auditor at a latter date.
  • Ask for clarification if you don’t understand a question.

What should employees not do in an auditor interview?

  • Change documents or provide false information. If a mistake was made the university will accept the consequences and correct processes to avoid the mistake in the future.
  • Agree to speak with an auditor without an ORSPA audit liaison present.

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