Last week, State Auditor Dave Boliek sent out a clear message to chief financial officers within the UNC System: buckle down and get ready for the shifts in the National Institutes of Health's (NIH) grant policies. According to a memorandum uncovered by North Carolina Office of the State Auditor, Boliek's alert comes as a preemptive call to ensure that financial reports accurately reflect any impacts from these changes.
Financial complications are nothing new, but with the NIH policy revisions looming, Boliek urged university finance leaders to avoid possible pitfalls. "Our financial statement audits stick to the numbers, and that’s exactly what our universities need to be doing," Boliek emphasized. Issued by the State Auditor, the memorandum was a warning to schools about the seriousness of correct financial statement reporting and the consequences of failure to comply.
The OSA, which is charged with auditing UNC System schools, also delivers a statewide Single Audit Report that scrutinizes federal funds flowing into North Carolina. This keen eye on the NIH grants in the university's purse strings ensures that federal dollars are accounted for with needlepoint precision. The importance of these audits is not just about bureaucratic box-checking; it's about maintaining a clear financial bill of health that can, in turn, support the continuing influx of federal research dollars.
As it stands, the North Carolina universities are finding themselves at a critical juncture—a point where the accuracy of financial statements can either open doors or close them. "The last thing we want to report are findings that could have been avoided," said Boliek in a statement obtained by North Carolina Office of the State Auditor, driving home the imperative to exercise due diligence. This is a call to action as much as an assurance—universities are expected to align with these updated NIH provisions to ensure their ledgers remain blot-free.
While the full extent of the NIH policy changes has not been publicly detailed, the State Auditor's memorandum serves as a critical heads-up. University CFOs, now forewarned, will undoubtedly be putting their accounting teams on alert to navigate the new terrain that lies ahead. The future funding for countless research projects may well depend on their ability to adapt—and swiftly.
