Emporia State University
Office of Internal Audit
Administration has the primary responsibility for establishing and maintaining a sufficient system of internal controls. The Office of Internal Audit will evaluate internal control adequacy, operating environment, and related accounting, financial and operational policies, and report the results accordingly so as to support Administration in the effective discharge of their responsibilities. This charter sets forth the purpose, authority and responsibilities of the Office of Internal Audit.
The internal audit function is a continuous, independent appraisal activity established within the University to examine and evaluate accounting, financial and other operations, both manual and electronic, to determine for management:
1) That assets exist, are safeguarded, and are properly accounted for,
2) That adequate managerial and accounting controls exist and function properly so as to provide reliable, timely, and complete data,
3) That management plans, policies and procedures are consistent with established objectives and goals and are carried out with the effective and efficient use of resources, and
4) That existing and proposed systems and operations are adequate and comply with those policies, plans, procedures, laws and regulations in place.
The Office of Internal Audit derives its authority from the Kansas Board of Regents, which receives its authority from the Kansas State Legislature, and serves the University in a manner that is consistent with both the International Professional Practices Framework (IPPF) and the Code of Ethics of the Institute of Internal Auditors. Additional resources, tools and guidance shall be obtained through the Association of College and University Auditors and from the Committee of Sponsoring Organizations.
The Internal Auditor will have complete and timely access to all organizational activities, records, personnel, and physical properties he/she deems relevant to the activity under review. Departments or activities under review are expected to cooperate fully with the Office of Internal Audit in the performance of its duties.
It is the policy of the Office of Internal Audit to audit all department and activities of Emporia State University and, by invitation, related corporations. The scope of work of the Office of Internal Audit shall also include review of University controlled affiliated organizations, including a review of the IRS Form 990 for each such organization, with a focus on potential conflicts of interest and transactions between the University and the University controlled affiliated organizations. The extent and frequency of recurring internal audits depends upon varying circumstances such as conditions found during previous audits, volume of transactions, state requirements, and adequacy of the system of internal control. At a minimum, internal controls for the University’s highest risk units, based upon public funds exposure, should be assessed on a regular basis.
The Office of Internal Audit is to be advised of all external auditors from firms, Federal or State agencies who are performing audits on University records, systems or procedures.
The Internal Auditor is located within the Administration and Fiscal Affairs Division for administrative purposes and has direct reporting access to the President. In any situation where the Internal Auditor perceives a conflict of interest with or on the part of the President’s involvement with the subject of an audit, the Internal Auditor has direct reporting access to the Fiscal Affairs and Audit Committee of the Kansas Board of Regents.
The Office of Internal Audit will prepare an annual audit plan and annually shall summarize the prior year’s activities and audit plans for the coming year, consistent with Board of Regents policies. Each completed internal audit reporting material financial weaknesses or fraud shall be submitted to the President and Chief Executive Officer of the Kansas Board of Regents, who shall be responsible for recommending to the Committee on Fiscal Affairs and Audit any specific audit findings which should be reviewed further by the Committee.
Objectivity is essential to the audit function. Therefore, the Office of Internal Audit is to have no authority over, or responsibility for, the activities they audit. The Internal Auditor should not develop and install procedures, prepare records, or engage in any other activity which he or she would normally review and appraise, and which would reasonably be construed to compromise his or her independence. His or her objectivity need not be adversely affected, however, by his or her determination and recommendation of standards for controls to be applied in the development of systems and procedures under his or her review. The Office of Internal Audit is to function in an advisory capacity only. Audit review and appraisal do not relieve other persons of responsibilities assigned to them.
Michael D. Shonrock
17 January 2012