Internal Audit

Mission

The mission of the Office of Internal Audit is to assist the University’s Board of Trustees and management in the discharge of their oversight, management and operating responsibilities. The Office conducts independent audits and consultations, which evaluate the efficiency and effectiveness of University operations. In addition, the Office works with other University entities to develop internal controls in accordance with good business practices on an ongoing basis.

Authority

To ensure independence, the Internal Auditor reports directly to the Audit Committee of the Board of Trustees and administratively on a day-to-day basis to the President of the University. The Internal Auditor has unrestricted access to all sources of information, property and personnel relevant to an area under review.

Specific responsibilities of the Office of Internal Audit include:

• Assess the soundness, adequacy and application of financial and operational processes
• Assess and evaluate risk factors associated with operations and functions of the University
• Ascertain the extent of compliance with established policies, plans, procedures, laws and regulations
• Ascertain the extent to which University assets are accounted for and safeguarded from losses of all kinds
• Serve as a resource to the University community in identifying the need for and characteristics of adequate systems of control

I. Audit Planning

The Internal Auditor will review the files of prior audits (if any), review applicable professional literature, research any applicable policies or statutes, interview appropriate personnel, and prepare an Audit Program.

II. Audit Scheduling

Audits can be announced or unannounced. In cases where notice will be given, the Internal Auditor will contact the management of the area to schedule a beginning date for the audit.

III. Entrance Conference

This meeting is optional upon the condition that the Internal Auditor makes the audited area aware of the audit objectives. If a meeting is held, the managers and other personnel of the area to be audited and the Internal Auditor will discuss the purpose and scope of the audit, the audit program and the audit reporting procedures.

IV. Fieldwork

The fieldwork will include testing of various documents and departmental reports.

V. Conclusion/Report Writing

Upon conclusion of the audit, the Internal Auditor will compile a draft report detailing the audit steps performed, findings, and recommendations for improvement or corrective action.

VI. Management Response

A copy of the draft report will be forwarded to University management. Management of the audited area may choose to comment on the draft report. Any written response should outline the actions taken or to be taken as well as disagreement with the report. This response will be included as an appendix to the final report.

VII. The Final Report

Depending upon the nature of the audit, the audit report is finalized and distributed. The final report may be distributed to the President and Audit Committee of the Board of Trustees, the Provost, the appropriate Vice President, Dean (if applicable) and the Director of the area audited.

VIII. Audit Follow-up

If deemed necessary, the Office of the Internal Auditor will conduct follow-up reviews of the audited area to determine if corrective action has been taken and, if taken, if the action is achieving the desired results.

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