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Chief Auditor warns staff leaves could delay parts of FY26 audit plan; remediation rates remain low
Summary
Chief Auditor Gwick told the Audit and Compliance Committee that employee leaves could prevent initiation of up to five tier-2 FY26 audits, reported a 15% remediation rate for open high-risk items this period, and summarized audit ratings including two 'needs improvement' findings in biostatistics and the employee threat-assessment component.
Chief Auditor Gwick told the University of Minnesota Board of Regents’ Audit and Compliance Committee in October 2025 that employee leaves are creating risks to the internal audit schedule and could materially affect the FY26 audit plan.
Gwick said staff absences related to the Minnesota paid family and medical leave program, an extended medical leave and a military deployment could, depending on duration, “result in up to five of our tier 2 audits from the audit plan not being initiated in FY26.” He said the precise duration and impact remain unknown and that the committee will receive updates in February.
Gwick reviewed follow-up and remediation results: only 15% of open high-risk remediation items were completed in the period, though he noted more than half of the open items are from first-time follow-ups and fewer than 25% are past management’s planned implementation date. He identified three audits with items open more than two years: the university health, safety and risk management consolidation (piloting a new safety-training assignment tool with remediation expected by the next follow-up), dentistry accounts receivable (delayed by staffing constraints; college is exploring outside resources), and Bell Museum inventory valuation (delayed by facility issues).
Gwick summarized audit ratings for nine completed audits in the period: four rated good, one adequate, and two needing improvement. Among positive ratings he named the SSBCI venture capital program, institutional animal care and use and athletics drug-testing programs. Audits rated 'needs improvement' included the biostatistics unit (operational compliance and IT issues, notably an independent IT function not meeting university standards for research data) and the employee-focused threat assessment component; management has established a new universitywide threat assessment program in July and begun implementation steps.
Committee members noted that although the overall 15% remediation rate is low, the share of items past management’s planned date (24%) is the lowest in three years, a metric they said shows some progress. Gwick said sustained management attention will be required to prevent a backlog of open items.
Gwick also reported two informational items required by board policy: agreed-upon-procedures work with external auditor CliftonLarsonAllen related to university retirement plans, and tax-consulting work with Ernst & Young; administration concluded neither engagement poses an independence issue.
