Re: A-133 audit engagements John D. Pepe 23 Oct 2001 16:48 EST
Molly - The audit engagement is the responsibility of management, normally with the approval of either/or the Finance/Audit Committee of the Board. I am not aware of any federal agency requiring audit engagement approval prior to the start of audit fieldwork. John D. Pepe Controller Stroud Water Research Center 970 Spencer Road Avondale, PA 19311-9514 VOICE: (610) 268-2153, ext. 253 FAX: (610) 268-0490 E-MAIL: xxxxxx@stroudcenter.org Please visit us on the Web: www.stroudcenter.org -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org]On Behalf Of xxxxxx@SBLHS.ORG Sent: Tuesday, October 23, 2001 5:30 PM To: xxxxxx@HRINET.ORG Subject: [RESADM-L] A-133 audit engagements Hi, all -- Our organization recently crossed the magical threshold of $300,000 federal funds expended in a fiscal year and are therefore taking steps to comply with audit requirements in OMB A-133. One of the agencies which provides federal support to our organization just sent a letter asking us if we really did mean to say "yes" on a form returned to them which asked if federal expenditures "during fiscal year 2002" are projected to total $300,000 or more. (We were required to return this form to them by Oct. 16, 2001.) Their letter points out that if we do indeed expend more than $300k in federal funds that we are required to conduct an audit in compliance with A-133 (no suprise) AND that the funding agency "must approve your audit engagement agreement prior to the start of audit fieldwork." Is this unusual? I do not see language anywhere in our grant agreement with this agency nor in their policies and procedures manual which stipulates that we must obtain approval for the agreement with an audit firm, and it strikes me as intrusive, particularly when the total amount of funds from this agency are a relatively small fraction of our federal annual total. Do agencies typically expect to approve audit agreements of organizations complying with A-133? P.S. our organization actually exceeded the threshold in FY 2001 and has already contracted with an audit firm to complete an A-133 audit for that period. ----------------- Molly Daniel Grants Specialist Planning Dept. Sarah Bush Lincoln Health Center 1000 Health Center Drive Mattoon, IL 61938-0372 tel. 217-258-2195 fax 217-258-4135 email: xxxxxx@sblhs.org <mailto:xxxxxx@sblhs.org> web: www.sarahbush.org <http://www.sarahbush.org> ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================