ORGANIZATIONAL RELATIONSHIP

     The Department is headed by the Director who has unrestricted access to the Chancellor.  This relationship ensures the independence of the Department,

promotes comprehensive audit coverage and assures adequate consideration of audit recommendations. Additionally, the Director has a clear and recognized reporting relationship with the Chair of the Executive and Audit Committee of the Board of Trustees.  The Director and Chancellor will meet at least prior to each Board of Trustees meeting to discuss any proposed audit presentations, and more frequently as required.  The Director regularly briefs the Executive and Audit Committee of the Board of Trustees and attends meetings of the full Board. The Internal Audit Department is directly responsible to the Chancellor for all audit-related activities.  The Director serves as an advisor to the Vice Chancellors and Chancellor on financial and management issues. For routine staff functional matters, the Department is assigned to the Vice Chancellor for Business Affairs.

  AUTHORITY AND RESPONSIBILITY

     The Internal Audit Department, in the performance of its official duties and with stringent accountabilities of safekeeping and confidentiality, is granted unlimited access to all facilities, personnel and records maintained, either electronically or manually, by all units of the university and its affiliated organizations.

INDEPENDENCE

     It is understood that the Internal Audit Department is independent of the areas audited. It does not participate in the direct operation of any activity of the university other than internal auditing. The independence and objectivity of the internal auditing function must be maintained at all times.

SCOPE OF AUDITS

     Internal audits and reviews are not limited in scope by campus management. Audit responsibilities extend to all campus-managed entities, all areas of operations and include all systems (manual and electronic, in use or under development) that support the activities of the campus. The scope of work of the Department is to determine whether the organization’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.

• Interaction with the various governance groups occurs as needed.

• 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 organization’s control

process.

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

ASSISTANCE TO EXTERNAL AUDITORS

     The Director coordinates and assists with the annual financial audits upon request and is on call to assist with interim audit work during the year as a result of issues submitted to the State Auditor's fraud and abuse hotline and to handle other audit and investigative requests as needed.

STANDARDS

     In the performance of its responsibilities, the Internal Audit Department adheres to the Standards for the Professional Practice of Internal Auditing, Code of Ethics, and Statement of Responsibilities of The Institute of Internal Auditors.