One possibility is to ensure that any audit is done by your institutional
auditors, with proprietary information not found germane to any audit
findings to go no farther than the audit team.  FYI, our own auditors are
state employees, and bound by state law not to reveal proprietary
information; you probably do not have this tool to use.

Or have the audit access limited to external, independent auditors; in this
case demand that the cost of such an audit, if undertaken, be born by the
company because it is their insistence on information security which causes
the increased cost.

Or, of course, deal with another supplier!

Chuck

At 05:27 PM 12/2/2002 -0500, you wrote:
>I am currently negotiating a subaward to a well-established nonprofit
>corporation under an NSF grant .  The corporation will not provide audit
>access to my institution but is willing to provide audit access to
>representatives of the federal government.   The justification for denying
>audit access is that salary data and the F&A rate are considered
>proprietary information.   My opinion is we need this access in order to
>carry out our responsibilities as the grantee.   Over the years I have
>never run into trouble around this particular issue when subcontracting to
>a wide range of commercial, nonprofit and educational institutions.
>
>I would very much appreciate hearing any suggestions and the experiences of
>others who have run into this issue.
>
>Thanks as always for your good advice.
>
>Michael Pelletier
>Assistant Director, Office of Sponsored Programs
>Education Development Center, Inc.
>(617)618-2227
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
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VCU will close most faculty and staff offices from December 21, 2002
through January 5, 2003.  OSPA will operate only a skeleton staff, with
some limited hours, during this period.

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