Auditors tell Regents’ committee University of Minnesota had no material findings in key federal and state audits

CliftonLarsonAllen auditors told the University of Minnesota Board of Regents Audit & Compliance Committee that the university’s recently completed single audit and other compliance examinations produced clean results for the major programs tested.

Jake Catrice, the audit manager, said auditors focused on four major programs — notably the research and development cluster and the student financial aid cluster — and found no findings or questioned costs. “Overall, the university was in material compliance with all those major programs,” Catrice said.

Daniel Persad, who reviewed state examinations and other procedures, reported similarly positive results for the Minnesota Office of Higher Education examination and the regenerative medicine procedures tied to state research funds. “We did not have any findings identified as we went through the procedures for those two engagements,” Persad said.

The auditors also reviewed NCAA‑related agreed‑upon procedures for athletic reporting at the Twin Cities and Duluth campuses and reported no exceptions in tested items for either campus.

Jean Bouchong, the engagement principal, emphasized the distinction between opinions and agreed‑upon procedures: federal and state examinations produce auditor opinions, while agreed‑upon procedures report findings from prescribed tests. She noted the single audit is risk‑based and must test programs that exceed federal thresholds.

Committee members asked how common it is for a large R‑1 university to receive no findings on uniform guidance testing. Bouchong said clean reports are uncommon because the regulatory requirements are complex and granular; even small procedural lapses must be reported. “To have a finding when and if we ever do report is not…the end of the world — you want those identified so you can correct it,” she added.

The auditors explained the university’s schedule of expenditures of federal awards is uploaded to the federal clearinghouse and that auditors and controller’s office staff then certify and verify that submission. Bouchong told the committee federal agencies do review those submissions and follow up when exceptions are reported.

The presentation to the committee covered completed FY24 engagements and concluded with auditors characterizing the university’s audit results as clean for the programs tested. The committee did not take formal action on these reports during the meeting.