Final answer:
Under OMB A-133, an institution of higher education must have an annual financial audit to ensure accountability for federal funding. This requirement has been carried over under the newer Uniform Guidance, although OMB A-133 itself has been superseded.
Step-by-step explanation:
If an institution of higher education is subject to OMB A-133, it must have an annual financial audit. This requirement ensures that institutions that expend a significant amount of federal funding are held accountable and their financial statements and spending meet specific federal standards. The regulation, which is now superseded by the Uniform Guidance (2 CFR 200), established audit requirements to manage and monitor federal funds provided to non-federal entities.
The purpose of the audit is not only to maintain transparency and accountability but also to evaluate the effectiveness of internal controls, confirm compliance with laws and regulations, and identify areas where operational improvements could be achieved. While OMB A-133 has indeed been replaced by Uniform Guidance, the need for regular audits as stipulated under the new standards remains. Institutions are not required by this regulation to have a specific technology infrastructure, quarterly performance reports, or monthly budget revisions, although these might be separately implemented as part of organizational best practices or other specific grant terms.