External Audits and Auditors†††††††††††††††††††††††††††††††††††††††††††† UPPS
Issue No. 6
Review: November 1 E4Y
01.†††††† POLICY STATEMENT
01.01† This UPPS establishes expected procedures and protocol for external audits.
02.01† An external audit is any review or investigation regarding compliance, financial or operational information, safeguarding and verification of assets, economical and efficient use of resources, and effectiveness of operations or programs conducted by external agencies such as public accounting firms, governmental auditors, regulatory offices, and funding sources.
02.02† This definition excludes reviews by accrediting bodies and by consultants hired by the university.
03.†††††† PROCEDURES FOR THE MANAGERS OF AREAS AUDITED
03.01† Any university department or operation that is contacted by an external auditor or funding source about an audit is required to refer them to the universityís director of Audits and Analysis.
03.02† The manager of the department or operation audited should submit responses to external audit findings through the director of Audits and Analysis and the appropriate vice president for approval prior to release. The director of Audits and Analysis will not prepare responses for other departments but will review and advise as appropriate.
03.03† If, at any time, the audited or other university departments have questions about the audit or issues raised during the audit, they should consult with the universityís director of Audits and Analysis.
03.04† The audited departmentís manager should keep a copy of all audit responses submitted, as well as copies of the final audit report, in the departmentís master files in accordance with state and university records retention schedules.
03.05† Upon receipt of a final audit report, the manager of the audited department has primary responsibility for ensuring that management responses are implemented within the time frame specified.
04.†††††† PROCEDURES FOR AUDITS AND ANALYSIS
04.01† The director of Audits and Analysis will function as the liaison between the university and external auditors, coordinating audit efforts, and facilitating their work on campus. In carrying out this responsibility, the director of Audits and Analysis will assist the university by ensuring that:
a.†† audit efforts
minimize unnecessary duplication of
b.†† external auditors have access to appropriate university information and personnel to ensure that information gathered is relevant, complete, and appropriate. †
04.02† The director of Audits and Analysis should advise the external auditor of expected protocol (described in Section 05.).
04.03† The director of Audits and Analysis will ensure that copies of all external audit reports are sent to the system director of Audits and Analysis at The Texas State University System Office.
04.04† The director of Audits and Analysis will perform follow-up work to ensure that management implements plans in each external audit by the date provided by management and included in the external auditorís audit report. In the event that management cannot or has not implemented plans, the director of Audits and Analysis shall notify the vice president for the area audited, the system director of Audits and Analysis, and other appropriate administrators to effect implementation or revise procedures, as the circumstances warrant.
05.†††††† PROTOCOL EXPECTED DURING EXTERNAL AUDITS
05.01† Departments that request delegated authority from the State Auditorís Office to procure external audit services need to comply with Texas Government Code Section 321.020. External auditors are expected to follow the protocol described below when conducting an audit of any department or operation of the university. All audit conferences must include managers of the audited areas, as well as a representative of Audits and Analysis. †
a.†† Auditors, representatives from Audits and Analysis,
and officials responsible for the audited areas will hold an entrance
b.†† Representatives of Audits and Analysis and
the audited department will hold interim conferences when significant potential
problems are identified.†
c.†† The parties will hold an exit conference to
review findings prior to preparing the final report.† †
d.†† The divisional vice president will attend or
send a representative to all conferences, as warranted.†
e.†† The auditors will submit a draft audit report to the director of Audits and Analysis prior to preparation of the final audit report.† †
06.†††††† REVIEWERS OF THIS UPPS
06.01† Reviewers of this UPPS include the following:
Director of Audits and Analysis†††††††††††††††† November 1 E4Y
07.†††††† CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director of Audits and Analysis; senior reviewer of this UPPS
Special Assistant to the President