As the cognizant Federal agency1 for Advanced Technology International (ATI), we performed a review of the BDO USA, LLP (BDO) single audit and supporting working papers for the audit period of July 1, 2012, through June 30, 2013. Our objective was to determine whether BDO conducted the single audit in accordance with generally accepted government auditing standards, the American Institute of Certified Public Accountants auditing standards, and the auditing and reporting requirements of Office of Management and Budget (OMB) Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations.” Appendix A contains additional details on our criteria, scope, and methodology; and identifies prior quality control reviews. Appendix B lists the compliance requirements that BDO determined to be applicable to the FY 2013 audit.
Advanced Technology International (previously known as Advanced Technology Institute) was organized as a private nonprofit corporation on May 18, 1998, and is a controlled affiliate of South Carolina Research Authority. ATI conducts research and development programs, for both governmental and commercial entities, on a contractual basis. D uring F Y 2013, ATI expended more t han $214.7 million in Federal funds on one major program, the research and development cluster. Of the $214.7 million, ATI expended $210 million on Department of Defense programs. ATI engaged BDO to perform the FY 2013 single audit.
BDO is the United States member of BDO International Limited and provides assurance, tax, financial advisory, and consulting services to a wide range of publicly traded and privately held companies. As required by generally accepted government auditing standards, BDO maintains its own system of quality control for accounting and auditing practices and obtained an external peer review dated November 27, 2012. T he BDO office in R aleigh, North Carolina, performed t he ATI single audit for FY 2013. BDO has been performing ATI’s single audit since 2010.
BDO’s audit contained quality deficiencies that affect the reliability of the audit results and require correction for the audit year under review. Except for the deficiencies on the review of the subrecipient monitoring and the procurement, suspension, and debarment compliance requirements (Finding A), the audit documentation generally supports the opinion contained in the audit report. In addition, we identified a documentation deficiency for the review of the reporting compliance requirement (Finding A) that needs to be addressed in future audits. ATI generally met OMB Circular A-133 reporting requirements except that we noted a deficiency with the preparation of the corrective action plan that should be addressed in future single audit reports.
Management Comments and Our Response
BDO and ATI 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.