Charter
(Effective September 17, 2009)
Mission and Scope of Work
The Internal Audit Department serves the Board of Trustees and administrators of the University of North Carolina at Charlotte as an independent, objective assurance and consulting activity designed to add value and improve the University’s operations. The Department assists the University in accomplishing its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control, and governance processes.
The scope of work of the internal audit department is to determine whether the University’s network of risk management, internal 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.
- Employee’s 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 properly.
Opportunities for improving management control, efficiency, and the organization’s image may be identified during engagements. They will be communicated to the appropriate level of management.
Accountability
The Director of the Internal Audit Department (Director), in the discharge of his/her duties, shall be accountable to management and the audit committee to:
- Provide annually an assessment on the adequacy and effectiveness of the organization’s processes for controlling its activities and managing its risks in the areas set forth under the mission and scope of work.
- Report significant issues related to the processes for controlling the activities of the organization and its affiliates, including potential improvements to those processes, and provide information concerning such issues through resolution.
- Provide information periodically on the status and results of the annual audit plan and the sufficiency of department resources.
Independence
To provide for the independence of the internal audit department, its personnel report to the Director, who reports functionally to the Chancellor. 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 will include as part of reports to the audit committee a regular report on internal audit personnel. For routine staff administrative matters, the Department is assigned to the Vice Chancellor for Business Affairs.
Responsibility
The Director and staff of the internal audit department 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 audit committee for review and approval.
- Implement the annual audit plan, as approved, including and as appropriate, any special tasks or projects requested by management and the audit committee.
- Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this charter.
- Establish a quality assurance program by which the Director assures the operation of internal auditing activities.
- Perform consulting services, beyond internal auditing’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 audit committee and management summarizing results of audit activities.
- Keep the audit committee informed of emerging trends and successful practices in internal auditing.
- Provide a list of significant measurement goals and results to the audit committee.
- Assist in the investigation of significant suspected fraudulent activities within the organization and notify management and the audit committee of the results.
Authority
The Director and staff of the internal audit department are authorized to:
- Have unrestricted access to all functions, records, property, and personnel.
- Have full and free access to the audit committee.
- 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 audit department are not authorized to:
- Perform any operational duties for the organization or its affiliates.
- Initiate or approve accounting transactions external to the internal audit department.
- Direct the activities of any organization employee not employed by the internal audit department, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors.
Assistance to external auditors
The Director coordinates and assists with the annual financial audit 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 of Audit Practice
In the performance of its responsibilities, the Internal Audit Department adheres to the State Internal Audit Manual published by the Council of Internal Auditing for the State of North Carolina for use by state departments, agencies and institutions in planning and conducting internal audits. The foundation for this manual is the North Carolina Internal Audit Act and International Professional Practice Framework issued by the Institute for Internal Auditors. Guidelines of the Information Systems Audit and Control Association, the Association of College and University Auditors and the National Association of College and University Business Officers are also followed in applicable audits and reviews.
