Massachusetts Institute of Technology
MIT is a private educational institute located in Cambridge, Massachusetts. Its mission is to advance knowledge and educate students in science, technology, and other areas of scholarship that will best serve the nation and the world in the 21st century. MIT also conducts research, primarily receiving funding from the Federal Government through grants and contracts. In addition, MIT operates the Lincoln Laboratory, a federally funded research and development center1 sponsored by the Department of Defense that uses advanced technology to address problems of national security.
PwC, a member firm of PricewaterhouseCoopers International Limited, provides a wide array of business services. Their services include auditing, business and Government consulting, and tax preparation and planning. PwC maintains its own system of internal quality control over its accounting and auditing practices as required by the AICPA. PwC’s office in Boston, Massachusetts, performed the MIT single audit for FY 2012.
MIT complied with OMB Circular A-133 reporting requirements. PwC generally met auditing standards and Circular A-133 requirements, and no additional work is required for the FY 2012 single audit. However, we identified deficiencies related to the documentation of audit sampling, reliance on financial statement internal control testing, and the review of the special tests and provisions, subrecipient monitoring, and reporting compliance requirements that need to be addressed for future audits.
Management Comments and DoD IG Response
PwC agreed to take 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.