Audit Requirements

What is an audit?

An audit is a systematic review or appraisal made to determine whether internal accounting and other control systems provide reasonable assurance of the following: 

• Financial operations are properly conducted. Financial reports are timely, fair, and accurately
• The entity has complied with applicable laws, regulations, and other grant terms
• Resources are managed and used economically and efficiently
• Desired results and objectives are being achieved effectively.

Requirements

Per federal regulation, NIH recipients or sub-recipients that expend $750,000 or more in federal awards during the fiscal year are subject to an audit requirement. Organizations expending less than $750,000 during the fiscal year are not required to have an annual audit for that year, but must make their grant-related records available to NIH or other designated officials for review or audit.

Audits shall be completed and submitted to the designated offices shown below within a period that is either the earlier of (1) 30 days after receipt of the auditor's report(s), or (2) nine months after the end of the audit period (i.e., the organization's fiscal year).

Federal Audit Clearinghouse
Bureau of the Census
1201 East 10th Street
Jeffersonville, IN 47132
800-253-0696

For-profit organizations, including for-profit hospitals, and foreign organizations should submit their audit report directly to:

National External Audit Review Center
HHS Office of Audit Services
1100 Walnut Street, Suite 850
Kansas City, MO 64106-2197
800-732-0679/816-426-7725