Financial Services and Operations

Chapter 12: Audits and Reports

Audits

The property management system at Michigan Tech is routinely reviewed and audited to establish government certification and to assure conformity with laws, regulations, and contracts.

Satisfactory audit results are critical. Compliance with University and Sponsor requirements facilitate the ongoing availability of assets for instruction, research, and administration. Effective property controls and management processes help ensure that research will continue unimpeded and that the potential liability associated with risk of loss is minimized.

Various organizations, both internal and external, perform or participate in the property audits at Michigan Tech. These include but are not limited to:

  • Office of Naval Research (ONR)
  • Defense Contract Audit Agency (DCAA)
  • Independent Auditors
  • Individual Sponsoring Agencies
  • Internal Audit
  • Internal Self-Assessment Reviews

The Office of Naval Research (ONR) conducts a Property Management System Analysis (PMSA) annually to certify our compliance with federal property regulations in order to preserve, protect, account for, and control Government owned property.

Independent audit firms conduct broad property audits on a regular basis at Michigan Tech. These audits include testing of specific property procedures and other property-related transactions as part of their complete accounting system analysis.

Michigan Tech’s Internal Audit Department conducts audits of property to ensure property compliance, database integrity, and training efficiency and accuracy, as well as to assure that the established policy and procedures are both compliant with government and other regulations and followed within the University.

The scope of a property audit may include:

  • Property Management Policies and Procedures
  • Property Awareness and Compliance with Procedures and Standards
  • Pre-Purchase Screening and Approvals
  • Acquisition and Procurement Practices
  • Receiving and Identification
  • Record Completeness, Accuracy and Timeliness
  • Subcontract Management
  • Physical Inventory
  • Utilization of Property
  • Property Reports
  • Excess Property Disposal Process
  • Award Closeout
  • Availability and Completeness of Supporting Documentation and Records Retention
  • Other facets of Property Management (i.e.: Maintenance of Equipment and Subcontractor Property Control, System and Property Security)