The Internal Audit charter was passed by UCA’s Board of Trustees on February 10th, 2010.
The Office of Internal Audit is an independent organization within the University of Central Arkansas. The objective of Internal Audit is to provide management and the Audit and Finance Committee with analyses, appraisals, recommendations, and information concerning activities reviewed. These audit activities include reviews of administrative and accounting internal controls and the assessment of quality of performance. Internal Audit is committed to providing the University with quality service.
Objectives and Goals
- Reviewing and appraising the soundness, adequacy, and application of accounting, financial and other operating controls and promoting effective control at a reasonable cost.
- Ascertaining the extent of compliance with state and federal law and with Board and Operating Policies and Procedures.
- Ascertaining that University assets are being adequately accounted for and safeguarded from losses.
- Determining the adequacy, reliability, and effectiveness of accounting and reporting systems.
- Appraising the quality of management’s performance in carrying out its assigned responsibilities.
- Recommending procedures that would improve the economy or efficiency of operations.
- Participating in system design as an advisor.
- Testing for evidence of fraud, embezzlement, theft, waste, etc., in the performance of auditing procedures.
Organizational Responsibility, Reporting Relationships, and Authority
The Office of Internal Audit reports directly to the University of Central Arkansas Audit and Finance Committee per Board Policy 213 as amended on May 30, 2014. The Audit and Finance Committee is responsible for reviewing and concurring in the appointment, replacement, reassignment or dismissal of the Director of Internal Auditing or any staff person of such office. The Director will administratively report to General Counsel for salary, budget, travel and other operating expenses subject to the approval of the chair.
The employees of the Office of Internal Audit are granted full, free, and unrestricted access to all manual or electronic records (including medical), policies, physical properties, plans, and personnel relevant to any audit or review. Documents and information given to internal auditors during the course of an audit or review will be handled in a prudent and confidential manner.
To ensure the independence and objectivity, the staff of the Office of Internal Audit has no direct responsibility or authority for activities or operations that may be audited or reviewed. For example, internal auditors do not develop or install procedures, prepare records, make management decisions, or engage in any other activity that could be reasonably construed to compromise their independence. Internal Auditors are not, however, precluded from making recommendations and suggestions for the improvement of internal controls or operating policies and procedures. An audit or review does not substitute or relieve other University personnel from their assigned responsibilities.
Annual and Long Range Plan
An annual risk assessment will be performed by the Office of Internal Audit to determine which auditable areas should be placed on the annual audit plan to be approved by the Audit and Finance Committee.
Scope of Work
The Office of Internal Audit will conduct its activities in accordance with applicable standards for professional practice of internal auditing. The scope of each internal audit will encompass the examination and evaluation of the adequacy and effectiveness of the organization’s system of internal control and the quality of performance in carrying out assigned responsibilities. The scope of each audit will be based on all or any combination of the following:
Reliability and Integrity of Information – reviewing the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
Compliance with Policies, Plans, Procedures, Laws, and Regulations – reviewing the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on operations and reports and determining the extent of the organization’s compliance.
Safeguarding of Assets – reviewing the means of safeguarding assets and, as appropriate, verifying the existence of such assets.
Economical and Efficient Use of Resources – appraising the economy and efficiency with which resources are employed.
Accomplishment of Established Objectives and Goals for Operations or Programs – reviewing operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.
At the conclusion of each audit, the Office of Internal Audit will issue a draft report to which the responsible institutional manager will respond. Once conflicts and differences of opinion are resolved by the appropriate management, Internal Audit will issue a final report to the UCA Audit and Finance Committee with the management responses included. Disagreement with an audit finding or recommendation will be handled by the Audit and Finance Committee.