1200-University of Louisiana System Internal Audit Charter

 

The State Colleges and Universities System supports a System Director of Internal Audit as a staff function and as a coordinator of a System-wide, independent appraisal function to examine and evaluate the business and administrative activities of the System’s Colleges and Universities.  The System supports this staff function as a service to System executive management and the Board of Trustees.  The System Director of Internal Audit reports directly to the System Vice President for Finance and Administration, and indirectly to the System President.  In carrying out his duties and responsibilities, the System Director of Internal Audit will have full, free and unrestricted access to all activities, records, property and personnel of each System institution.

 

The coordination of the System’s internal auditing function is the responsibility of the System Director of Internal Audit.  The System Director is appointed by the Board on recommendation from the System President.  The internal auditing function consists of the Campus Offices of Internal Audit, whose Directors report to their respective Presidents and to the Board of Trustees through the System Director of Internal Audit.  The System Director will prepare, for approval by the System Vice-President for Finance and Administration and the System President, a consolidated System-wide audit plan.  Such plan will incorporate each campus’ proposed audit plans, each of which shall include input from the President and CFO’s as to areas of audit concern, and areas subject to increased risk.  The proposed individual plans will identify the audits to be conducted at each campus during the year.  This system-wide audit plan will identify areas of audit concern on a campus-by-campus basis, as well as a system-wide approach.  The final plan shall be reviewed, and if necessary, revised by the Finance & Audit Committee; and then approved by the Board at an open meeting.

 

The Finance & Audit Committee of the Board of Trustees maintains oversight of the System-wide auditing function.

 

Objective

The primary objective of the System Director of Internal Audit is to coordinate the System-wide internal audit function and to assist members of the System’s Executive management and members of the Board of Trustees in the effective discharge of their responsibilities.  To this end, the System Director will compile analyses, recommendations, counsel and information concerning the activities and records of the campuses resulting from reviews conducted by the College and University Office of Internal Audit; and provide such information to management and to the Board on a regular basis.

 

 

Function

Internal auditing is a management control, which functions by measuring and evaluating the effectiveness of other managerial controls.  The System Director of Internal Audit insures that this control is functioning at all campuses.

 

GUIDELINES

 

General Objectives of Audits and Reviews

The System Director of Internal Audit should insure that the work of the University

Offices of Internal Audit includes the following general objectives:

 

1.      Determining that the University’s overall system of internal control and administrative control and the controls in each department or activity under audit are adequate, effective, efficient and functioning; audits should be conducted on a periodic basis so that all major systems are reviewed every two years.  Such reviews will be coordinated with the State Office of the Legislative Auditor to avoid unnecessary duplication of effort.

2.      Determining the reliability and adequacy of the accounting, financial and reporting systems and procedures.

3.      Determining, on a test basis, that University activities, including the administration of grants and contracts received or made, are in conformance with  the University policies and procedures, State and Federal laws and regulations, contractual obligations, Board Rules and good business practices.

4.      Determining the extent to which University assets are accounted for and safeguarded from losses of all kinds, and, as appropriate, verifying, on a test basis, the existence of such assets.

5.      Evaluating operational procedures to determine whether results are consistent with established objectives and goals and whether the procedures are being carried out as planned.

6.      Evaluating the design of major new electronic data processing systems and major modifications to existing systems prior to their installation to determine whether the system of internal control will be adequate, effective and efficient.

 

When internal auditors are evaluating the design of a new or modified system prior to its installation, sufficient information must be provided to them, before installation, regarding the intended internal controls, so they can complete their evaluation and reach conclusions regarding the system of internal control before the system is actually installed.

 

In addition, the System Director of Internal Audit should insure that University Offices of Internal Audit conduct investigations as required or directed related to the general objectives stated above.

 

 

 

General Scope Of Audit Coverage

The general scope of audit coverage is System-wide and no function, activity or department of the Universities is exempt from audit and review.  Nor may any officer, administrator or staff member prohibit the System Director or the Universities’ internal auditors from examining any University record or interviewing any faculty/staff member or student which the auditors deem to be pertinent to their audits and reviews.  Additionally, the System Director of Internal Audit has the authority to audit or cause to be audited the accounts of all organizations required to submit financial statements to the System or any of its Colleges and Universities.

 

Auditing Procedure

The System Director of Internal Audit insures that University internal auditors conduct audits and reviews according to generally accepted auditing standards using such audit programs, techniques and procedures as are considered necessary under the circumstances.  The operation of the internal audit functions to be carried out consistent with The Statement of Responsibilities and Code of Ethics defined by the Association of College and University Auditors.

 

Standards for the performance of the audit function are developed from the following:

 

·        The Standards for the Professional Practice of Internal Auditing (Institute of Internal Auditors).

·        General Standards for Information Systems Auditing (EDP Auditors Association).

·        Statement on Auditing Standards No.1 (American Institute of Certified Public Accountants).

 

Limitation of Authority and Responsibility

In performing their work, the System Director and University internal auditors have no direct authority over, nor responsibility for, any of the activities reviewed.  Internal auditors will not develop and install procedures, prepare records, make management decisions, or engage in any other activity which could be construed to compromise their independence.  Therefore, internal audit reviews and appraisals do not in any way substitute for nor relieve other persons in the universities of the responsibilities assigned to them.

 

Audit Committee of the Board of Trustees for State Colleges and Universities

To maintain oversight of the auditing function, both internal and external, the Finance & Audit Committee will review the previous year’s System-wide internal audit program and the direction of the System-wide audit program to be followed in the year ahead, and review the annual financial and compliance audits, including any specific issues of concern.  As appropriate, background documents related to specific audit issues will be sent to the Committee during the course of each year.

 

Return to Table of Contents

Return to Office of Internal Audit Main Page