Responding to Audits and Reviews

Generally, Federal government grant programs hold recipients accountable for the efficiency and effectiveness of their grant-supported projects. As such, grantees may be subject to periodic audits or “reviews” designed to ensure that the grantee is meeting certain performance or financial standards.

Audits are conducted by the Offices of the Inspector General (OIGs), and they can occur randomly or as a result of a complaint or whistleblower. The OIGs were created by the Inspector General Act of 1978 to establish independent and objective units to carry out audits and investigations of programs and agencies, to provide leadership and policy recommendations on efficient and economic administration, including the prevention of fraud and abuse, and to keep Congress informed in the administration of executive branch agencies. The OIGs are responsible for carrying out audit and investigation functions objectively and independently.

Organizations can take certain steps to prepare for an audit:

Pre-Audit

Designate a point person to coordinate external audit activities;
If necessary, obtain counsel; and
Develop and establish appropriate response procedures.

Once Notified of an Audit

Request a detailed explanation of the scope and purpose of the audit;
Conduct an entrance conference;
Comply with requests for documents, interviews, and testimony; and
Conduct an exit interview.

After the Audit

Review the Government’s reports;
Address adverse findings; and
Develop and implement corrective action plans.