Internal Audit Office

Internal Audit Charter

Introduction

Internal auditing is an independent, objective assurance, and consulting activity designed to add value and improve the organization’s operations.  The objective of an internal audit activity is to help an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.  The Internal Audit Office furnishes analysis, appraisals, recommendations, counsel, and information concerning the activities reviewed.  The Internal Audit Office is concerned with any phase of University activity were it can be of service to management.

Professional Standards

Internal Audit will serve the University in a manner consistent with the International Professional Practices Framework promulgated by the Institute of Internal Auditors (IIA) and with professional standards of conduct such as the IIA’s Code of Ethics.  The IIA’s International Standards for the Professional Practice of Internal Auditing shall constitute the Office’s operating procedures.  Additionally, Internal Audit will obtain resources, tools, and guidance through the Association of College and University Auditors and the Committee of Sponsoring Organizations.

The IIA’s Practice Advisories, Practice Guides, and Position Papers will also be adhered to as applicable to guide operations.  In addition, the internal audit activity will adhere to the University’s relevant policies and procedures.

Organization

The Internal Auditor reports directly to the President.  The Internal Auditor shall report directly to the Kansas Board of Regents’ Fiscal Affairs and Audit Committee any situation wherein the auditor perceives a conflict of interest with or on the part of the President’s involvement with the subject of an audit.

Authority & Responsibility

Internal Audit shall have full and free access to any and all University and University-controlled affiliate corporation records, physical properties, and personnel relevant to an audit.  Internal Audit is to be advised of all external audits from firms and Federal or State agencies who are performing audits on University or controlled-affiliated corporation records, systems, or procedures.

Independence

The Internal Auditor will have no direct operational responsibility or authority over any of the activities audited.  Accordingly, he or she will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair his or her judgment.

Scope

The scope of Internal Audit shall be unrestricted and encompass the examination and evaluation of the adequacy and effectiveness of the University’s governance, risk management process, system of internal control structure, and the quality of performance in carrying out assigned responsibilities to achieve stated goals and objectives.  It includes:

  • Reviewing the reliability and integrity of financial and operational information and the means used to identify, measure, classify, and report such information.
  • Reviewing the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on operations and reports, and determining whether the University is in compliance.
  • Reviewing the means of safeguarding assets and, as appropriate, verifying the existence of such assets.
  • Reviewing and appraising the economy and efficiency with which resources are employed.
  • Reviewing operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as intended.
  • Reviewing University-controlled affiliated corporations, including a review of the IRS Form 990 for each such corporation, with a focus on potential conflicts of interest and transactions between the University and University-controlled affiliated corporations.

Audit Planning

The Internal Auditor shall report annually to the Kansas Board of Regents’ Fiscal Affairs and Audit Committee, summarizing the prior year’s activities and plans for the coming year.

Reporting

The Internal Auditor shall prepare and issue a written report following the conclusion of each audit and will distribute as appropriate.  The University shall submit each completed internal audit report identifying material financial weaknesses or fraud to the Kansas Board of Regents President and Chief Executive Officer who shall be responsible for recommending to the Fiscal Affairs and Audit Committee any specific findings that should be further reviewed by the Committee.

The internal audit report may include management’s response and corrective action taken or to be taken in regard to the specific findings and recommendations.  Management’s response should include a timetable for anticipated completion of action to be taken and an explanation for any corrective action that will not be implemented.

The internal audit activity will be responsible for appropriate follow-up on audit findings and recommendations.  All significant findings will remain in an open issues file until cleared.

Updated and approved 12/20/2016

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