External Audits and Auditors†††††††††††††††††††††††††††††††††††††††††††† UPPS No. 04.03.03
Issue No. 6

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Effective Date: 06/29/2012
Review: November 1 E4Y





01.01This UPPS establishes expected procedures and protocol for external audits.




02.01An 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.


02.02This definition excludes reviews by accrediting bodies and by consultants hired by the university.




03.01Any 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.


03.02The 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.


03.03If, 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.


03.04The 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.


03.05Upon 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.




04.01The 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 work; and

b.†† external auditors have access to appropriate university information and personnel to ensure that information gathered is relevant, complete, and appropriate.


04.02The director of Audits and Analysis should advise the external auditor of expected protocol (described in Section 05.).


04.03The 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.


04.04The 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.




05.01Departments 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 conference.

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.




06.01Reviewers of this UPPS include the following:


Position†††††††††††††††††††††††††††††††††††††††††††††††††††††††† Date


Director of Audits and Analysis†††††††††††††††† November 1 E4Y



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