The mission of the Internal Auditing Division is to provide independent, objective assurance and consulting services designed to add value and improve the University’s financial and operational activities and compliance environment. The Internal Auditing Division assists the University’s management in accomplishing their objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control, and governance processes.

The scope of the Internal Auditing Division’s responsibilities includes examining policies, procedures, information systems, and internal controls in place to determine whether they are adequate and functioning in a manner to ensure:

• Risks are appropriately identified and managed.

• Interaction with the various governance groups occurs as needed.

• Significant financial, managerial, and operating information is accurate, reliable, and timely.

• Employee’s actions are in compliance with policies, standards, procedures, and applicable laws and regulations.

• Resources are acquired economically and used efficiently.

• University assets are safeguarded.

• Programs, plans, and objectives are achieved.

• Quality and continuous improvement are fostered in the organization’s internal control process.

• Significant legislative or regulatory issues impacting the organization are recognized and addressed properly.

Opportunities for improving management controls, efficiency, and the University’s image may be identified during audits. They will be communicated to the appropriate level of management.

ACCOUNTABILITY

The Internal Auditing Division Director shall:

• Report significant issues related to the processes for controlling the activities of the University, including planned improvements to those processes, and report on the progress of implementing corrective actions.

• Provide information periodically on the status and results of the annual audit plan and the sufficiency of the Internal Auditing Division’s resources.

• Coordinate with and provide assistance to other control and monitoring functions (risk management, compliance, security, legal, ethics, environmental, external audit) as needed.

INDEPENDENCE

To provide for the independence of the Internal Auditing Division, the University President appoints the Director and maintains the general oversight of the operations of the Division. The Director also reports to the Chief Audit Officer/Associate Vice Chancellor (AVC), thus assuring adequate consideration of audit findings and planned actions.

RESPONSIBILITY

The Director and staff of the Internal Auditing Division have responsibility to:

• Develop a flexible annual audit plan using appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the President and AVC for review and approval.

• Implement the annual audit plan, as approved, including and as appropriate, any special tasks or projects requested by management.

• Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications.

• Establish a quality assurance program by which the Director assures the effective and efficient operations of the Internal Auditing Division.

• Perform consulting services, beyond the Internal Auditing Division’s assurance services, to assist management in meeting its objectives. Examples may include facilitation, process design, training, and advisory services.

• Evaluate and assess significant new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.

• Issue periodic reports to the President and AVC summarizing results of audit activities.

• Keep the President informed of emerging trends regarding risk management, internal controls, and successful practices in internal auditing.

• Provide a list of the Division’s significant measurement goals and results to the President and AVC.

• Assist in the investigation of significant suspected fraudulent activities within the University and notify the appropriate management members of the results.

• Consider the scope of work of the external auditors and regulators, as appropriate, for the purpose of providing optimal audit coverage to the University at a reasonable overall cost.

AUTHORITY

The Director and staff of the Internal Auditing Division are authorized to:

• Have unrestricted access to all functions, records, property, and personnel of the University.

• Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.

• Obtain the necessary assistance of personnel in units of the organization where they perform audits, as well as other specialized services from within or outside the organization.

The Director and staff of the Internal Auditing Division are not authorized to:

• Perform any operational duties for the University.

• Initiate or approve accounting transactions external to the Internal Auditing Division.

• Direct the activities of any organization employee not employed by the Internal Auditing Division, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors.

STANDARDS OF AUDIT PRACTICE

The Internal Auditing Division will meet or exceed the Standards for the Professional Practice of Internal Auditing and Code of Ethics of The Institute of Internal Auditors.