Report | Aug. 29, 2013

Quality Control Review of the PricewaterhouseCoopers, LLP FY 2011 Single Audit of SRI International

DODIG-2013-125

Background

SRI International (SRI) is an independent, nonprofit research institute headquartered in Menlo Park, California. SRI conducts client-sponsored research and development for government agencies, commercial businesses, foundations, and other organizations. SRI expended $424.2 million in Federal awards for the fiscal year ended December 31, 2011, under one Federal program, the research and development cluster. Of the $424.2 million, $295.2 million was expended for Department of Defense programs.

Review Results

The PricewaterhouseCoopers, LLP (PwC) audit generally met auditing standards (1) and Office of Management Budget (OMB) Circular A-133, “Audits of States, Local Governments,and Non-Profit Organizations,” requirements. However, we identified deficiencies related to the review of the special tests and provisions requirement, work paper documentation, and the preparation of the data collection form (Findings A and B). These deficiencies need to be addressed for future single audits. SRI generally met OMB Circular A-133 requirements except the data collection form was not accurate and complete because it did not identify the name of the pass-through entity (Finding B).

Management Comments and DoD IG Response

PwC and SRI agreed to take the recommended actions. Management comments were responsive and no additional comments are needed. Management comments are included in their entirety at the end of the report.