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PwC reports clean uniform guidance audits and board reappoints firm; audit fees to rise 2.75% for 2025
Summary
PricewaterhouseCoopers reported largely clean FY24 uniform guidance audits for the system campuses, disclosed one minor administrative finding at UAH, and the board approved PwC’s appointment for fiscal year 2025 and an updated internal audit charter.
PricewaterhouseCoopers (PwC) briefed the University of Alabama System’s Audit, Risk and Compliance Committee and the full board on June 6 about uniform guidance audit results for fiscal year 2024 and presented the proposed audit plan and fees for the 2025 engagement.
PwC lead engagement partner Drew Wagner told trustees the firm completed FY24 uniform guidance testing for research-and-development cluster programs across the three campuses and reported no compliance findings at UA or UAB. PwC reported a single administrative compliance finding at UAH related to procurement rules; Wagner described that issue as administrative in nature with no questioned costs and not indicative of a material control weakness. "All in all, a clean report as it relates to all of these uniform guidance audits," Wagner said.
The nut graf: PwC emphasized the scale of federally funded research in the system and said their audit work included both compliance testing and financial-statement work on the major programs; the firm reported unmodified opinions on compliance and did not find internal control deficiencies over the major programs tested.
On fees, PwC said it proposed a 2.75% fee increase for the 2025 audits, following a 5% increase in 2022–23 and a 3% increase in 2024. Wagner noted the firm is beginning to incorporate generative AI tools for limited accounting research and data analysis but said those tools currently are not driving material fee reductions; he said PwC expects efficiencies could develop over time.
The board approved a resolution to appoint PwC as external auditors for fiscal year 2025 and later approved an updated Office of Internal Audit Charter presented by the system’s chief audit officer, Chip Bivens. The charter was revised to align with the Institute of Internal Auditors’ updated global standards and the system office said it remains consistent with board rule 408.
Ending: Trustees recorded no opposition and approved both resolutions by voice vote; management will continue to coordinate scheduling and any follow-up audit observations with the audit committee.
