The Internal Audit Charter establishes authority and responsibility of the Office of Internal Audit. The Internal Audit Department reports operationally and administratively to the President and has full-unfettered access to records, locations, assets and personnel.
B. Responsibility of the Director of Auditing
The Director of Auditing is responsible for properly managing the department so that
(i) Audit work fulfills the purpose and responsibilities established herein.
(ii) Resources are efficiently and effectively employed.
(iii) Audit work conforms to the standards for the Professional Practice of Internal Auditing.
The Director of Internal Audit will report to the President for approval on audit scope, policy and administration. He will report in writing on internal reviews conducted and will report on significant recommendations and the operation of the Internal Audit functions. The Director of Internal Audit will also have an indirect reporting responsibility to Audit committee of the Board of Trustees.
Independence is essential for effective operation of the internal audit function. It is the policy of the university, therefore, that all audit activities shall remain free of influence by any organizational elements. This shall include such matters as scope of audit programs, the frequency and timing of examination and the content of audit reports.
E. Scope of Audit Services
Audit coverage will encompass, as deemed appropriate by the Director of Auditing independent reviews and evaluations of any and all management operations and activities to appraise:
- Measures taken to safeguard assets, including costs of existence and ownership as appropriate.
- The reliability, consistency, and integrity of financial and operating information reviewed.
- Compliance with policies, plans, standards, laws and regulations that could have significant impact on operations.
- Economy and efficiency in the use of resources.
- Effectiveness in the accomplishment of the mission, objectives and goals established for the institution’s operations and projects.
Audit activities will be coordinated to the extent possible, with the State Auditors so as to enhance audit efficiency.
F. Access and Confidentiality
In accomplishing his activities, the Director of Internal Audit and his staff are authorized to have full free and unrestricted access to all institution’s functions, activities, operations, records, data files, computer programs, property and personnel. Under appropriate circumstances, the Director of Internal Audit is specifically authorized to communicate directly to the President, and/or the Audit Committee of the Board of Trustees.
It is expected that the Director of Internal Audit and his staff will exercise discretion in the review of records to ensure the confidentiality of all matters that come to their attention.
G. Responsibility for Corrective Action
The manager of the division, department unit is responsible for seeing that corrective action on recommendations made or deficient conditions reported by the auditor is either planned or taken. If the proper corrective action is not taken, the Director of Internal Audit is responsible for presenting a report on significant matters to the Chief Finance Officer, the President or the Audit committee of the Board of Trustees.
H. Limitation of Authority and Responsibility
In performing their functions, the Director of Auditing and audit staff members have neither direct authority over, nor responsibility for, any of the activities reviewed. Internal auditors will not develop and install procedures, prepare records, make management decisions or engage in any other activity which could be reasonably construed to compromise their independence. However, in connection with the complementary objectives of this audit function, Internal Audit will recommend accounting policies and procedures for approval and implementation by appropriate management. Therefore, internal audit review and appraisal do not in any way substitute for other activities or relieve other persons in the organization of the responsibilities assigned to them.
Approved by: M. Christopher Brown II President
(Signature on file)