December 11, 2025 - Audit & Compliance Committee, University of Minnesota Board of Regents

The University of Minnesota Board of Regents Audit & Compliance Committee met on December 11, 2025, to review audit work completed for fiscal year 2025 and discuss the audit plan for fiscal year 2026. The external auditor, CliftonLarsonAllen LLP, reported a clean financial statement audit opinion with no material weaknesses, though one significant deficiency was noted related to a late reporting of a student financial aid disbursement, attributed to administrative challenges with FAFSA changes. The committee also reviewed other audit engagements including state aid examinations and NCAA agreed-upon procedures, all with no major exceptions. Planning for the FY26 audit was discussed, highlighting new accounting standards (GASB 103 and related implementation guides) affecting financial statement presentation, especially around state appropriations and leases. Internal audit updates included deferrals of two tier-two audits due to staffing, ongoing remediation of high-risk audit issues, and recent audit ratings ranging from good to needs improvement. Additional information items covered external engagements related to retirement plan procedures and consulting on energy projects. The committee emphasized the importance of audit transparency and legislative communication regarding compliance and preventative audit work.