EXTERNAL AUDITS OF SPONSORED PROJECTS
Purpose: To provide appropriate procedures for external audits.
Source: University Policy.
Policy: NAU, to the maximum extent possible, cooperates with and assists auditors, investigators, and other agency representatives who conduct fiscal or programmatic reviews of externally funded projects. The office of Sponsored Projects Services and the office of Grants and Contract Services (if applicable) shall coordinate reviews involving sponsored grant and contract programs. University personnel contacted by an external agency's representative for an on-site visit to review technical performance and technical reporting need to contact the office of Grant and Contract Services. For a review of financial activity the external parties should be referred to the office of Sponsored Projects Services (SPS).
The Office of the Vice President for Administration is responsible for monitoring all audits. The comptroller has university-wide liaison responsibility for all work relative to the university's annual general purpose financial statement examinations performed by the auditor general or auditor general-appointed external auditors, including the specialized work done for federal grants/contracts and financial aid.
Techniques for Being Interviewed by Auditors, Investigators, and Other Agency Representatives:
Auditors, investigators, and other agency representatives will sometimes interview one or more people who worked on the project(s) being reviewed. These meetings should be scheduled in advance through SPS and conducted with an SPS representative and/or a Grants and Contracts Services staff member present when possible, if appropriate. The following tips are helpful to remember when speaking to auditors, investigators and other agency representatives.
1) Tell the truth.
2) Be sure you understand the question before you start answering it. Ask them to repeat or clarify the question if necessary. Pause for a moment to collect your thoughts.
3) Respond specifically to the question being asked; do not discuss extraneous matters.
4) Verify the question by repeating it before responding, especially if you are not quite sure what information is being sought.
5) Respond as accurately as you can. Stick to the facts, i.e., things that you know from direct experience.
6) Stick to your area of knowledge; if you do not have specific knowledge of the subject, do not guess.
7) If asked a question within your area of responsibility that you are unable to answer, let them know that you will have to look it up and get back to them.
8) Give them your full cooperation; try to adjust your schedule to accommodate theirs. IF you have told them that you would be getting back to them with some information, do it promptly.
9) Do not speculate, hypothesize, pontificate, guess, or make joking comments that could be misinterpreted to NAU's detriment.
Procedure
If contacted by a sponsor representative about a visit or a need for information:
1) University personnel shall refer the person to Sponsored Project Services. If the external agency is reviewing technical performance and technical reporting refer the person to the office of Grants and Contract Services.
2) The responsibility of the office of Sponsored Projects Services and/or the Office of Grant and Contracts Services is as follows:
Confirm the visit request and ask for a formal written request within two weeks' advance notice.
Note: If time is of the essence, immediate arrangements may be made.
Confirm the dates of the visit. Determine what information and records are necessary for the review.
Request the auditor to select the sample for transaction testing before arriving on campus.
Gather supporting documentation for the sample from Purchasing Services or Accounts Payable, the Payroll Office, Travel Reimbursements, and/or on-campus service departments.
Arrange temporary office space for the auditors/reviewers to work.
Schedule an entrance conference with the sponsor representative(s), and schedule meetings with other university personnel as appropriate.
Arrange for one or more staff members to assist the visitors and accompany them to meetings/interviews with other university personnel.
Make available the necessary records and prepare any additional technical information that may be requested.
Conduct exit conferences.
Obtain input from the project director, develop the university's response, and submit it to the external agency representative on behalf of NAU.