_________________________________________________________________
SPONSORED PROGRAMS OPERATIONS GUIDE

    
Audit

Periodically, accounts are audited by external agencies. For this reason, it is important to maintain a close working relationship with the University's cognizant audit agency, the Department of Health and Human Services in Dallas .Audits can be one of three types:

• Audit of direct costs under general expenditure systems (e.g., time and effort reporting, prior approval system, consulting system);
• Compliance audit with Office of Management and Budget Circular No. A-133, "Audits of State, Local Governments, and Non-Profit Organizations;" or
• Individual award audit for all award expenditures.

Each audit is coordinated by the Office of Grants & Contracts Administration and the Internal Audit Department. If the audit team requires files, documentation or discussion with other campus personnel, arrangements are made through Grants & Contracts and the Internal Audit Department. All questions regarding allowability of expenditures, contract modifications, etc. are to be directed to Grants& Contracts Administration. This process ensures an accurate audit report.

During the audit it may be necessary for Grants & Contracts Administration to contact departments or principal investigators to request information about a specific contract or grant. It is the responsibility of the principal investigator to keep accurate records supporting all costs for a minimum of three years after the agency has accepted the final report. Copies of progress reports, documentation of the selection process used to hire consultants, and of time and effort expended must be maintained for the same period of time.

If there is a disallowance on a specific grant or contract, a campus review will occur to determine who is responsible for its repayment.

    
Records Retention

Federal and state agencies, as well as many local agencies and foundations, require the University to maintain all project-related records for a minimum of three years after the acceptance of the final report for audit purposes. Consequently, principal investigators and project directors should retain complete grant files for a minimum of four years after the project has been closed out by the sponsoring agency.