Description
Federal, State and Other sponsors reserve the right to conduct audits as outlined in the award terms and conditions. Upon reasonable notice, the University shall make records available to sponsoring agency or authorized auditor for inspection and evaluation of award activities. Below is an overview of topics related to compliance with these responsibilities.
Rights to Audit
The Auditor General of the State of Illinois employs a public accounting firm to annually audit federally funded sponsored project expenditures. This audit is conducted in accordance with Uniform Guidance and the Single Audit Act, 1996. In addition, the Office of Naval Research, the University's administrative cognizant federal agency, may engage federal auditors to assist them with their oversight responsibilities.Moreover, federal and non-federal sponsors, if permitted by the terms of their awards to the University, may conduct or have conducted on their behalf, audits or "reviews" of expenditures and/or compliance issues related to their awards.
Audit Coordination and Results
In all cases of audits or "reviews" of sponsored programs, Sponsored Program Administration's (SPA) Audit and Compliance team is the official liaison between the auditors and any University unit. Oversight and coordination of the annual audit of federal expenditures (Single Audit), is overseen by University of Illinois Urbana-Champaign, in collaboration with the equivalent offices at the University of Illinois Chicago and Springfield. Audit fieldwork generally begins in May and concludes in December. Departmental Business Managers are notified if a project in their unit is selected for audit as part of this process. Business managers, principal investigators and staff are expected to cooperate with the audit process and provide timely responses to their Sponsored Program Administration audit liaison.
Sponsors occasionally request a periodic program specific audit, expenditure review or other monitoring activity. Such requests should be referred to Sponsored Program Administration. SPA will coordinate these types of activities, with the participation of the department and the PI.
Findings resulting from audits and monitoring activities can impact the University's ability to obtain future funding. It is imperative that the units and PI’s actively participate in addressing audit recommendations. Disputed and disallowed costs resulting from an audit or review must be removed from the sponsored project account immediately and transferred to other appropriate university accounts.
Access to Records and Retention requirements
The Auditor General of the State of Illinois, the federal awarding agency, the agency Inspector General, Comptroller General of the United States, or any of their duly authorized representatives, have the right of timely and unrestricted access to any books, documents, papers, or other records of recipients that are pertinent to the awards, in order to make audits, examinations, excerpts, transcripts and copies of such documents. This right also includes timely and reasonable access to a recipient's personnel for the purpose of interview and discussion related to such documents.
For sponsored programs, all financial, technical, and other records pertinent to the project must be retained for three years following submission of the final financial report, unless the terms of the award provide for a longer period. Electronic or copied paper versions of records may be used in place of the original records. If any audits, claims or litigation commences within three years of the end of the project or project period, records must be retained until the audit, claim or litigation reaches its final outcome. Other records related to the award may follow an alternate retention period as described inUniform Guidance.
The rights of access are not limited to the required retention period, but shall last as long as records are retained. As a component unit of the State of Illinois, the University is subject to the Illinois State Retention Act and must seek approval before the disposal of any records. Therefore, it is important for university units to review records regularly and determine a disposal protocol. Departments may have records in their files that have longer retention periods than required for sponsored programs. To review retention schedules and seek guidance on appropriate disposal procedures, please visit:Records and Information Management Services.
Freedom of Information Act Responsibilities
The Freedom of Information Act of 1967 requires Federal agencies to provide access to public records upon formal request. Agencies are required to disclose any information requested unless the data falls under certain exemptions meant to protect personal privacy, national security and law enforcement or other recognized exemption.The State of Illinois also has the Illinois Freedom of Information Act meant to allow the citizens of Illinois the ability to stay informed of government affairs and public officials responsible for enacting policy affecting the public interest. Like the federal act, the Illinois act provides for certain exemptions. As an institution who receives public funds from both the Federal government and the State of Illinois, the University of Illinois is subject to both acts.
SPA assists when requests involve sponsored programs. In coordination with the External Relations and Communications Office, the University must provide, within a reasonable time, the requested materials to the public through the procedures established under the applicable FOIA.Should your office receive notification of a FOIA request, your prompt attention to this matter is critical.
