Are there any “red flags” that would alert an auditor to question or further review a space classification? Are there certain items that an auditor would normally review?
Yes, there are certain “suspicious factors” that can trigger “red flags” for the Federal auditors. It is important that you maintain documentation supporting the space classification since an audit is likely to take place more than a year after the Space Survey is completed. These include: Programmatic/functional comparison of departmental salaries/wages and space. The Federal auditors will more closely review large departments that seem to have a disproportionate amount of Sponsored/Organized Research space in comparison to Sponsored/Organized Research salaries/wages. For example, the Federal Auditors would almost certainly seek an explanation and possibly even perform a walk-through audit in a large department that has 30% of its salaries/wages classified as Sponsored/Organized Research, as compared to 60% of its space. The differential, however, often is justifiable and readily explainable, and therefore is appropriate. Comparison of room-use and program classifications. The Federal
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