Institutional Compliance & Internal Audit Department Charter

Charter

• Statement of Policy
• Independence
• Authority
• Responsibility

Statement of Policy

The Institutional Compliance & Internal Audit Department was established by a motion that was duly passed by the Board of Trustees at its April 20, 2002 meeting to provide independent appraisals on behalf of the management of the University necessary to measure and evaluate the effectiveness of internal controls and compliance with all applicable laws, regulations, agreements and internal procedures.  The Department of Institutional Compliance & Internal Audit would assist management in the effective discharge of their responsibilities by providing them with analyses, appraisals, recommendations, counsel and information concerning the activities and functions that they review.

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Independence

To ensure the department’s independence, as well as, assure adequate audit coverage and consideration of audit recommendations, the Director of Institutional Compliance & Internal Audit reports to the Chancellor and the Audit Committee of the Board of Trustees.  Administratively, the Director reports to the Vice Chancellor for Business and Financial Affairs.

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Authority

The staff of Institutional Compliance & Internal Audit Department has full and complete access to records (manual or automated), physical property and personnel of the University that they deem pertinent in completing an audit.  The staff will maintain sensitive information as strictly confidential.

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Responsibility

The Institutional Compliance & Internal Audit Department has no direct responsibility for the operations and activities that they review.  Also, while the Department will take an active role in the formulation of policy and procedures or the development of new systems and processes, it will be in an advisory capacity, with final decision and implementation being the responsibility of the appropriate manager or project sponsor.

Audits of the University will be conducted by the staff of Institutional Compliance & Internal Audit Department based upon an annual plan approved by the Chancellor and the Audit Committee of the Board of Trustees.  In the conduct of those audits, the staff of Institutional Compliance & Internal Audit will:

• Appraise the adequacy and soundness of internal controls and operating procedures.  Review controls for cost effectiveness and relevance to the current operating environment.

• Determine compliance with applicable regulatory or contractual requirements.

• Assess the reliability of management information utilized in the decision making process.

• Evaluate the effectiveness of existing policies and/or assist in the formulation thereof, when necessary.

• Determine whether allocated funds are used efficiently and for the purposes for which they were allocated.

• Assure that University assets are properly recorded and adequately safeguarded against loss.

• Identify opportunities for cost savings and recommend improvements.

An annual report of audit activities will be presented to the Chancellor and to the Audit Committee of the Board of Trustees at a regularly scheduled meeting.