Audit and Compliance UPPS No.
04.03.01
Issue No. 4
Effective Date: 01/15/2008
Review: April 1 E5Y
01. POLICY STATEMENTS
01.01 Internal
auditing is an independent objective, assurance and consulting activity
designed to add value to an organization; improve its operations; and otherwise
assist accomplishment of its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of control, governance, and
risk management processes.
01.02 The
Board of Regents is primarily responsible for providing governance, guidance
and oversight of management within the System. Management is responsible for
establishing and maintaining adequate internal controls to ensure achievement
of System goals and objectives. The internal audit function is designed to
provide positive support to the Board, System and Component administrations in
the effective discharge of their respective responsibilities.
01.03 The
purpose, authority and responsibility of Audit and Compliance are defined in Texas
State University System (TSUS) Policies and Procedures, Chapter 3, Section VII
which has been approved by the Board of Regents of the Texas State University
System and adopted by management. See Attachment
I for TSUS Policies and Procedures.
02. AUDITING PROCEDURES
02.01 The
Director of Audit and Compliance will inform the divisional vice president,
dean or director, and the account manager prior to conducting a routine
internal audit.
02.02 Audit
and Compliance will discuss audit concerns, recommendations and conclusions
with the appropriate levels of management before issuing final written reports.
These discussions help ensure that there have been no misunderstandings or
misinterpretations of fact by providing management the opportunity to clarify
specific items and to express views of the audit issues, recommendations and
conclusions. A draft of the report will be provided to the TSUS Director of Audits
and Analysis for review. Upon approval of the draft, a copy of the report will
be provided to management. Initial management responses are due within two
weeks as required by the Texas State University System's Rules and Regulations.
At that time, management will present its response to the audit issues in final
form, including an action plan that has been approved by the divisional vice
president. If responses are not received in a timely manner, the status of the
audits will be reported to the Board of Regents quarterly. Upon a showing of extenuating
circumstances by management and the Component-housed auditor’s recommendation,
the Director may extend the time for response. Management or administrators may
request an exit conference at any time during this discussion process prior to
release of the final audit report. The TSUS Director, Audits and Analysis also
reviews report drafts immediately prior to release.
02.03 If
Audit and Compliance and management disagree about the audit results or the
appropriateness of the response, both positions may be included in the audit
report. The Director of Audit and Compliance will issue a final audit report to
the President and management upon approval of the TSUS Director.
02.04 The
President, vice presidents, or the Special Assistant to the President will
ensure that there is adequate consideration of the audit report and appropriate
action on audit recommendations.
03. REVIEWERS OF THIS UPPS
03.01 Reviewers
of this UPPS include the following:
Position Date
Director, Audit Review and Compliance April 1 E5Y
Director of Audits and Analysis, TSUS April 1 E5Y
04. 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,
Audit and Compliance; senior reviewer of this UPPS
President