Types of Audits and Reviews on Sponsored Awards
Desk reviews are an evaluation of UMBC’s award administration capacity with a focus on General Management, the Accounting System and Cash Management. The purpose is to ensure UMBC is utilizing sound business and administrative practices in order to achieve the purpose of the sponsored award. Written documentation is submitted, reviewed, and analyzed at the reviewer’s site. After the desk review has been completed a report to senior management will be issued describing any issues identified during the review. A corrective action plan may be required to remedy any identified deficiencies.
In some cases, desk reviews are scheduled in advance of a site visit.
Financial Statement Audit
The Financial Statement audit provides an independent assessment of the University System of Maryland’s (USM’s) financial statement and supplemental schedules. The report by the auditor attests to the fairness in presentation of the financial statements and provides reasonable assurance about USM’s reported financial condition. UMBC’s financial statements are a component of the USM financial statement.
Inspector General (OIG) Audit
An Office of Inspector General (OIG) Audit is when a federal OIG conducts independent audits and investigations on behalf of Congress and the executive branch of the Federal government. Each Federal agency has an OIG that provides independent oversight of the agency’s programs and operations. The office is responsible for promoting efficiency and effectiveness in agency programs and for preventing and detecting fraud, waste, and abuse. They assess internal controls, financial management, information technology, and other systems that affect the operation of federal programs.
Internal Audit – University System of Maryland (USM)
The Office of Internal Audit conducts financial, operational, compliance, investigative, information systems, and follow-up reviews of the USM’s 12 constitute institutions. The purpose of the audit is to ensure each institution is operating effectively, efficiently, and in accordance with applicable policies, standards, regulations, and laws.
A Legislative Audit is an independent, objective audit of State of Maryland agencies and programs to ensure fiscal soundness and compliance with applicable state regulations. Legislative auditors conduct a fiscal compliance audit of UMBC every three to four years. Performance audits may also be performed at the discretion of the Office of Legislative Audit (OLA) or as requested the by the State of Maryland’s Joint Audit Committee or the Executive Director of the Department of Legislative Services.
Fiscal compliance audits are conducted with a primary focus on fiscal operations, information systems, and programs with financial impact on the State of Maryland. Performance audits are designed to evaluate whether the institution is operating in an economic, efficient, and effective manner or to determine whether desired program results have been achieved.
Formerly known as the OMB A-133 audit, the Single Audit is a rigorous, organization-wide audit of an entity that expends $750,000 or more in Federal awards during the entity’s fiscal year. Performed annually, the Single Audit’s objective is to provide assurance to the Federal Government as to the management and use of federal funds by recipients such as states, cities, universities, and non-profit organizations. The audit is typically performed by an independent certified public accounting firm and encompasses both financial and compliance components. The Single Audit must be submitted to the Federal Audit Clearinghouse (FAC) along with a data collection form. UMBC’s single audit is a component of the State of Maryland’s single audit.
Site visits allow Sponsors to assess UMBC’s capability, performance, and compliance against the applicable elements that make up each award. Reviewers assess whether UMBC’s financial management system accurately and completely discloses and documents financial results of Federal awards and if UMBC systems provide effective control and accountability of funds, property, and other assets.
This type of review is conducted at the institution and involves review of written policies and procedures, visual documentation and faculty and staff interviews. Site visits may last several days and include observing facilities, interacting with employees and scrutinizing documents. The results are an assessment in the form of a written report to senior management.