Purpose

The primary objective of the internal audit activity is to assist members of the Board of Trustees and management in the effective discharge of their responsibilities.  To this end, the Office of Internal Audit provides independent, objective assurance and consulting services designed to add value, improve internal controls and strengthen the University’s operations.  Internal Audit helps the University accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Authority and Independence

The Office of Internal Audit is authorized to direct a broad, comprehensive program of audit activities within the organization.  In accomplishing these activities, the Office of Internal Audit shall have unrestricted access to the University’s records, physical properties, personnel, independent auditors and other individuals as deemed necessary.  The Director of Internal Audit reports administratively to the Executive Vice President for Finance and functionally to the Chair of the Audit Committee of the Board of Trustees.

Internal Audit’s objectivity and independence depends largely on having no operational responsibility for or authority over any of the activities subject to review.  Further, the internal audit review and appraisal does not relieve other personnel in the organization of the responsibilities assigned to them. 

Internal auditors will not perform any operational duties, develop and install systems and procedures, initiate or approve accounting transactions, prepare records, or engage in any other activity which they would normally review and appraise and which could reasonably be construed to compromise in appearance or fact, the independence and/or objectivity of the internal auditor.

Scope of work and responsibilities

The Office of Internal Audit’s responsibilities will be performed in accordance with the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing and the Code of Ethics.

The scope of work of internal audit is to determine whether the University’s network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:

• Risks are appropriately identified and managed.
• Significant financial, managerial, and operating information is accurate, reliable and timely.
• Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
• Resources are acquired economically, used efficiently, and adequately protected.
• Programs, plans, and objectives are achieved.
• Quality and continuous improvement are fostered in the University’s control process.
• Significant legislative and regulatory issues impacting the University are recognized and addressed appropriately.

The Office of Internal Audit has responsibility to:

• Develop and execute a flexible annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, the independent audit firm, or the Audit Committee, and submit that plan as well as periodic updates to the Audit Committee for review and approval.
• Communicate results of internal audits and recommendations for improvement to the most senior management responsible for implementing corrective action.  Obtain written management responses as to corrective action planned or taken within a specified time from the issuance of the audit reports.  Evaluate and follow up on the proposed action.
• Assist in the investigation of significant suspected fraudulent activities within the organization and notify management and the Audit Committee of the results.
• Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this charter.
• Coordinate with the independent audit firm, as appropriate, for the purpose of providing optimal audit coverage to the organization at a reasonable overall cost.
• Use outside service, where appropriate, to obtain specific expertise which is not available internally to meet the requirements of this charter.
• Issue periodic reports to the Audit Committee and management summarizing results of audit activities.  Keep the Audit Committee and management informed of emerging trends and successful practices in internal auditing.