As you are probably aware of, doing business with the NIH requires a lot of compliance in the area of accounting beyond the normal filing of annual income tax returns. As an NIH grantee, you are required to prepare an annual indirect cost rate proposal and may be required to have either an A-133 program audit or an audit in accordance with Government Auditing Standards of your NIH grants.
Your company’s NIH indirect cost rate proposal must be submitted to NIH within six months of the close of your company’s fiscal year. The indirect cost rate proposal is a complex proposal requiring an understanding of the Federal Acquisition Regulation (FAR) and NIH supplements and regulations. Costs included in the proposal are subject to upcoming fiscal year and adjust current grants. The indirect cost proposal can be even more complex if you are working with multiple government contracting or granting agencies.
As required by 45 Code of Federal Regulations (CFR) 74.26, if your company has expended over $500,000 in NIH grant expenditures, your company is required to have either a financial related audit in accordance with Government Auditing Standards or an audit in accordance with the requirements of OMB Circular A-133. The audit report must be filed with NIH within nine months of the close of your company’s fiscal year. The audit is of your grant awards for compliance with the FAR requirements and OMB Circular A-133 requirements.
Our firm specializes in helping companies to comply with the requirements of their U.S. Government grants or contract awards. We can prepare your indirect cost proposal and support negotiations with NIH. We can determine if your company has had grant expenditures in excess of $500,000 and are required to have an audit. We can perform either a financial related audit or an audit in accordance with the requirements of OMB Circular A-133 to meet your NIH audit requirements.
Our firm has over 20 years of experience working with companies doing business with U.S. Government through contracts and grants. Please feel free to call us at (978) 957- 9665 or e-mail us at pwitts@wittscpa.com to discuss how our firm can help you comply with the accounting and auditing requirements of your grant awards.