Chapter VII - Internal Auditing Division
INTERNAL AUDITING DIVISION POLICY
The Board of Trustees is committed to the proposition that University activities should be independently audited on a periodic basis as a service to management. The Board's goal is that the State Auditor will never report a serious audit finding because the University's internal audit function will have already discovered problems and presented them to management for timely solutions. The Director of Internal Auditing reports functionally to the Board of Trustees through the Executive & Audit Committee and administratively to the Executive Secretary to the Board.
The Executive Secretary shall be responsible for bringing to the immediate attention of the Chairman of the Board and the President any audit, or parts of an audit, that reflect practices, procedures or actions that vary substantially from normal or sound business practices. The Chairman of the Board and the President, alone or in consultation with the Executive & Audit Committee, shall determine whether the President should take corrective actions regarding such audits or whether the Executive Secretary should maintain it as information.
The Executive & Audit Committee of the Board was formed to assist the Board in its oversight function. The Committee meets with various audit constituencies to discuss audit results and other issues relevant to University administration.
The objective of Internal Auditing is to assist all members of the University administration in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations, and pertinent comments concerning the activities reviewed. The Internal Auditing Division is concerned with any phase of activity where it can be of service to management. This involves going beyond the accounting and financial records to obtain a full understanding of the operations under review. The Internal Auditing Division shall have access to all of the University's records, properties and personnel relevant to the subject under review. It shall have the authority to review and appraise policies, plans, procedures, and records. It shall also have the authority to require a written response to its report comments. The Internal Auditing Division has no direct responsibility to, or authority over, any of the activities it reviews. Its review and appraisal process does not relieve University administration of the responsibilities assigned to it.
To meet its objectives, the Internal Auditing Division engages in such activities as:
- Reviewing and appraising the soundness, adequacy and application of accounting, financial, and other operating controls and promoting effective control at reasonable cost.
- Ascertaining the extent of compliance with established policies, plans, procedures, laws, and regulations.
- Ascertaining the extent to which University assets are accounted for and safeguarded from losses of all kinds.
- Reviewing and appraising the economy and efficiency with which resources are employed.
- Ascertaining the reliability of management data developed within the University.
- Addressing the quality of performance in carrying out assigned responsibilities
- Recommending operating improvements.
The recommendations outlined in Internal Auditing Division reports are submitted as constructive suggestions to assist in strengthening controls and procedures.
Any Trustee may review in person any audit in the Office of the Executive Secretary of the Board, but shall not be furnished a copy of any audit.
November, 2001