PwC reports clean OMB uniform-guidance results; trustees reappoint firm and approve internal audit charter

PricewaterhouseCoopers on June 6 reported the results of the fiscal year 2024 OMB uniform-guidance audits to the University of Alabama System audit, risk and compliance committee and presented the proposed audit plan and fees for fiscal 2025.

Drew Wagner, lead engagement partner for PwC in Birmingham, told the committee the firm issued unmodified opinions on compliance for the campuses and reported no compliance findings at UA or UAB; PwC reported one administrative procurement finding at UAH that the firm described as "benign" and not indicative of material noncompliance or control weakness. Wagner stated the research-and-development cluster was in scope across the campuses this year and emphasized the work required to test federal research expenditures.

Wagner disclosed the total federally funded expenditures cited in the presentation: approximately $516,000,000 at UA, $751,000,000 at UAB and $142,000,000 at UAH. He also presented the proposed 2025 audit fees and said PwC proposed a 2.75% fee increase for 2025, following prior increases of 5% in 2022–23 and 3% in 2024.

Trustees discussed PwC's nascent use of generative AI in audit work; in response to a trustee question, Wagner said current AI uses are limited to minimal tasks such as accounting research and that the firm expects AI may create efficiencies over time but was not yet a material driver of fee reductions.

The audit, risk and compliance committee forwarded two resolutions for board action. The full board approved a resolution appointing PricewaterhouseCoopers as independent external auditors for fiscal year 2025 and approved an updated Office of Internal Audit Charter that the chief audit officer said aligns with the Institute of Internal Auditors' updated standards issued in January 2024.

The board approved both resolutions by voice vote during the June 6 meeting.