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PwC reports clean fiscal‑2025 uniform‑guidance audits; board approves firm for FY26 and hears proposed fee increase
Summary
PwC told the University of Alabama System board it found no compliance findings in fiscal‑2025 uniform‑guidance audits across UA, UAB and UAH; the board approved PwC as external auditors for FY26 while PwC proposed a 3% inflationary fee increase and one‑time scope uplift tied to new audit guidance.
PricewaterhouseCoopers reported to the University of Alabama System board on June 12 that uniform‑guidance (UG) audits for fiscal 2025 closed without findings across UA, UAB and UAH.
Drew Wagner, PwC lead engagement partner, said the audits produced a clean (unmodified) opinion on compliance for the major programs in scope and that no independence issues or instances of noncompliance were identified. “We had one additional program at UA this year…there are no findings in any of these audits this year,” Wagner told the committee.
PwC also presented its fiscal‑2026 audit plan. Ryan McIntyre, PwC audit partner, outlined significant audit risks the firm will target: the inherent risk of management override of controls and, for hospital consolidated results, revenue recognition related to patient accounts receivable. McIntyre said PwC performs walkthroughs to verify controls are designed and implemented and will report any control deficiencies to the audit committee if found.
On fees, Wagner said PwC proposed a 3% inflationary increase for fiscal 2026 and described a temporary scope increase tied to new AICPA guidance for uniform‑guidance testing that will require one‑time mapping and additional testing. “We are asking for a 3% increase…in addition to scope changes related to the uniform guidance audits at each of the three campuses,” he said.
The audit risk and compliance committee recommended, and the board approved by voice vote, a resolution appointing PwC as external auditors for fiscal year 2026 and approved an updated Office of Internal Audit charter. The recorded transcript does not include a roll‑call tally for the PwC appointment; the chair called for the voice vote and the board indicated approval.
The board discussion noted PwC’s effort to accelerate audit timing in prior years and emphasized that PwC would report any identified control weaknesses. PwC representatives said the heightened one‑time workload tied to new UG execution guidance should diminish after the mapping and approach updates are complete.
Next steps: PwC will proceed as the board’s external auditor for FY26 and implement the agreed audit scope; any fee adjustments and scope‑related details will be reflected in final engagement documents.
