Audits and Analysis UPPS No. 04.03.01
Issue No. 5
Effective Date: 07/27/2012
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 of The Texas State University System (System) is primarily responsible for providing governance, guidance and oversight of management within the System. Texas State University management (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 System Board of Regents, and to System and component administrations in the effective discharge of their respective responsibilities.
01.03 The purpose, authority and responsibility of Audits and Analysis are defined in System Rules and Regulations, Chapter 3, Paragraph 7, which has been approved by the System Board of Regents and adopted by management. See TSUS Rules and Regulations at http://www.tsus.edu/about/resources.html.
02. AUDITING PROCEDURES
02.01 The component director of Audits and Analysis (component director) will inform the divisional vice president, dean or director, and the account manager prior to conducting a routine internal audit.
02.02 Audits and Analysis 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 system director of Audits and Analysis (system director) for review. Upon approval of the draft, a copy of the report will be provided to management. Management responses are due within two weeks as required by the 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 quarterly to the System Board of Regents. Upon a showing of extenuating circumstances by management and the component director’s recommendation, the system 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 system director also reviews report drafts immediately prior to release.
02.03 If Audits and Analysis and management disagree about the audit results or the appropriateness of the response, both positions may be included in the audit report. The component director will issue the audit report to the president and management upon approval of the system 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:
Component Director of Audits and April 1 E5Y
System Director of Audits and Analysis 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.
Component Director, Audits and Analysis; senior reviewer of this UPPS