PwC auditors told the University of Alabama Board’s Audit, Risk and Compliance Committee on Sept. 11, 2025 that their fiscal‑year 2025 audit plan remains unchanged from the plan presented in June and that substantive year‑end audit work is scheduled to begin in mid‑October.

Lead audit partner Drew Wagner reported that planning procedures and walk‑throughs across campuses are complete and that the auditor’s current expectation is to have 3–4 major federal programs in scope under the Uniform Guidance at UAH, with research and development programs in scope across the campuses. PwC intends to perform hybrid on‑campus work (interim and concentrated fieldwork) with a plan to complete and issue Uniform Guidance reporting earlier in the cycle than in some prior years.

The committee was also informed that PwC has been engaged to perform the first‑year audit of the UAB St. Vincent’s Health System Authority. The auditors are coordinating with St. Vincent’s management and an external accounting firm that the management team retained to assist with: (1) the transition from FASB to GASB accounting standards, and (2) an assessment of consolidation and presentation choices for component units.

GASB standard changes: Two standards are effective for FY2025 and two are effective in FY2026, and PwC briefed trustees on the expected impacts.
- GASB 101 (compensated absences): Establishes a consistent approach to accruing liabilities for PTO, vacation and sick time. Auditors said management has completed significant analysis; they do not expect material changes in liability dollar amounts but noted the exercise is substantial.
- GASB 102 (risk disclosures): Standardizes required disclosures about concentrations of risk and material uncertainties; management will perform an annual analysis of concentrations (for example, student funding or supplier concentration) to determine required disclosures.
- GASB 103 (financial reporting model improvements, effective FY2026): Expected to change income‑statement subtotals and require major component‑unit information to appear in primary statements rather than only in notes.
- GASB 104 (disclosure of certain capital assets, effective FY2026): Will require more detailed rollforward disclosures for categories such as leased assets, PPP assets, subscription‑based IT arrangements and intangible assets.

Timing and next steps: PwC executed the FY25 engagement letter, will commence substantive testing in mid‑October with heightened campus presence in November, and expects to finalize Uniform Guidance reports in the spring (PwC said its goal is to issue UG reports before Memorial Day). PwC noted that as audit scoping is finalized it remains possible a program could be added in scope.

Quotes
"At this stage, there have been no changes to the plan that we presented to you back in June," Drew Wagner said, describing planning activities and fieldwork timing.
"The transition from FASB to GASB and the consolidation assessment are the largest audit‑judgment areas for Saint Vincent's this year," the auditor briefing said, noting close coordination with management and its external accounting adviser.

Ending: The committee received the update with no immediate action items; PwC and management will continue coordination as the audit progresses and as the system implements new GASB reporting requirements for FY2025 and FY2026.