Every year UMass is audited by an independent third party. There are a few reasons why an audit is vital to our continued operation as a university, including:
- Access to federal funding - an organization that spends more than $750,000 of federal money in a single year is required to undergo an audit. In FY22, the university spent over $1 billion on federal awards!
- Required by law - an independent audit of the university is mandated every year by Massachusetts General Law.
- Access to bond markets - UMass uses the bond markets to finance large projects (new dorms, buildings, etc.). An independent audit helps inform those lending money on the financial health of an organization. UMass had over $3.6 billion of outstanding debt in FY22.
- Good financial practice - an audit is another financial check on an organization. It helps reassure stakeholders that the financial information presented is accurate.
The Controller's team is grateful for all the work our colleagues in the President's office do to support the important annual audit. Please let us know if you have any questions or want to know more about why an audit is important.