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The ºÚÁϲ»´òìÈ Internal Audit Office reports functionally to the Board of Trustees Audit Committee with the Vice President for Finance and Administration providing regular operational oversight.ÌýThese reporting relationships ensure departmental independence, promote comprehensive audit coverage, and assure adequate consideration of audit recommendations.

Purpose

Internal Audit is an independent appraisal activity established within the University to examine and evaluate ºÚÁϲ»´òìÈ’s management systems. University administration has the primary responsibility for establishing and maintaining a sufficient system of internal controls.ÌýInternal Audit assists University administration in the effective discharge of its responsibilities by furnishing evaluations of departmental activities, recommendations for improvements in systems and procedures, and other information designed to promote effective controls.

Responsibilities

Meaningful internal auditing requires cooperation among the Internal Audit Office, college administration, and the auditee.ÌýEach party’s responsibilities in this regard include but are not limited to the following:

Internal Audit Office

• Examine and evaluate the controls, policies and procedures, and systems in place to safeguard university assets.
• Evaluate the reliability and integrity of information, and the efficient and effective use of resources.
• Review compliance with policies, procedures, laws and regulations.
• Report results and make recommendations to administration and the Audit Committee.
• Coordinate audit planning and scheduling activities with the external audit or review organizations.

Administration

• Support the Internal Audit Office and communicate this support within their units.
• Participate in the audit process.
• Provide appropriate, clear and consistent direction to the university community through written policies and procedures.
• Follow-up on progress of corrective actions for audit findings within their units.

Auditee

• Cooperate with the audit process by providing unrestricted access to facilities, books and records, information, and personnel.
• Respond in writing, within a reasonable period of time, to all audit recommendations. Each response should contain an estimated implementation date.
• Implement agreed-upon corrective action programs.

Audit Committee

• Review with management and the Internal Auditor the charter, plans, activities of the internal audit function.
• Ensure there are no unjustified restrictions or limitations, and review and concur in the appointment, replacement, or dismissal of the Internal Auditor.
• Provide oversight as to the effectiveness of the internal audit function.
• On a regular basis, meet separately with the Internal Auditor to discuss any matters that the committee or internal audit believes should be discussed privately.
• ÌýResolve any differences between management and the internal auditor regarding audit recommendations.

Authorization

In the course of its work, Internal Audit has full and complete direct access to all University books, records (manual and electronic), physical properties, and personnel relevant to the subject of review.ÌýAll documents and information given to Internal Audit during their work will be handled in the same prudent manner that the University expects of the employees normally accountable for them.

The Internal Audit Office has neither direct responsibility for, nor authority over, any of the activities, functions, or tasks it reviews.ÌýAccordingly, Internal Audit does not develop or write policies or procedures that they may later be called upon to evaluate.ÌýThey may review draft materials, developed by administration, for propriety and/or completeness.ÌýHowever, ownership of, and responsibility for, these materials remains with administration, not Internal Audit.

Audit Standards and Ethics

ÌýIn discharging the duties set forth in this Charter the Internal auditor will be guided by appropriate standards for internal auditing and appropriate Code of Ethics.ÌýThe department is expected to consistently demonstrate high standards of conduct and ethics as well as appropriate judgment, independence, and discretion.ÌýMembers maintain a professional image and protect auditee confidences and confidential information.

Selecting and Scheduling Audits

The University Internal Auditor prepares an annual Internal Audit Plan for review by the Audit Committee of the Board of Trustees.ÌýCandidate projects come from a risk assessment, recommendations by senior administration, regular coverage of large functional operations (cashiering, accounts payable, etc), and special requests.

Reporting

All audit work is summarized in timely written reports distributed to an appropriate list of recipients.ÌýIn general, reports are distributed to the President, the Vice President for Business, Finance and Technology, the Assistant Vice president for Business and Finance, as well as the auditee, their immediate supervisor, and other department heads affected by audit findings.ÌýSpecial request reports may have a more limited distribution.

Internal Audit will provide administration with adequate time to prepare responses to audit report findings before distributing the reports to appropriate recipients outside of University administration.

A summary of all work performed during the current fiscal year will be prepared and presented to the Audit Committee of the Board of Trustees and the external auditor on a regular basis.