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© Oregon University System, 2008
[ Internal Audit Charter ] [ Oregon State Board of Higher Education Audit Charter ]
Internal auditing is an independent, objective, assurance and consulting activity designed to add value and improve the organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. The objectives of internal auditing are to assist members of the organization in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed and by promoting effective control at reasonable cost.
The Oregon State Board of Higher Education and the Chancellor established the Internal Audit Division and its responsibilities. The responsibilities are defined in this charter, which is approved by the Oregon State Board of Higher Education. The Executive Director of Internal Audit reports administratively to the Chancellor and functionally to the Finance and Administration Committee of the State Board of Higher Education.
Authorization is granted for full and complete access to any of the organization's records (either manual or electronic), physical properties, and personnel relevant to an audit engagement. Documents and information given to internal auditors during a periodic review will be handled in a confidential and prudent manner as required by the International Institute of Internal Auditors code of ethics.
Internal auditors have no direct responsibility or any authority over any of the activities or operations that they review. They should not develop and install procedures, prepare records, or engage in activities, which would normally be reviewed by internal auditors.
Recommendations on standards of control to apply to a specific activity may be included in the written report of audit findings and opinions, which is given to the operating management for review and implementation. Copies of final reports will be distributed to university management and the Chancellor.
The scope of internal auditing encompasses the following activities
A written report will be prepared and issued by the Executive Director of Internal Audit following the conclusion of each audit and will be distributed as appropriate.
The manager of the activity or department receiving the internal audit report will respond within 30 days. This response will indicate what actions were taken or are planned in regard to the specific findings and recommendations in the internal audit report. If appropriate, a timetable for the anticipated completion of these actions will be included.
The Executive Director of Internal Audit will meet with the Chancellor quarterly or more frequently as deemed necessary.
A summary of audit results will be provided to the Chancellor and Finance and Administration Committee of the State Board of Higher Education semi-annually and more frequently as deemed necessary.
The Oregon State Board of Higher Education has oversight responsibility to ensure that Oregon University System (OUS) management is performing their duties of financial reporting, effective and efficient internal controls, and compliance with laws, regulations, and ethics. As part of this oversight responsibility, the Oregon State Board of Higher Education shall have the following responsibilities and powers and shall perform the following functions as it relates to audits.
Board Approved: September 10, 2004.