Audit Charter

1.0 CHARTER

1.1 Function

It is the policy of this university to establish and support an internal auditing department as an independent appraisal function to examine and evaluate university activities as a service to management and the governing boards of the organization as a whole.

The objective of internal auditing is to assist members of management and the boards in the effective discharge of their responsibilities. To this purpose the internal auditor furnishes findings, conclusions, and recommendations concerning the activities reviewed.

1.2 Reporting Relationship

The internal auditing department reports to the Senior Vice President of Operations and Chief Financial Officer. The Director of Internal Auditing shall report periodically to the Audit Committee of the governing boards concerning the accounts of the Officers of the organization. The director Shall also present the annual internal audit results to the Audit Committee.

The Audit committee shall approve the internal audit plans and objectives and the results of audit activities.

1.3 Mission

The purpose of the Office of Internal Auditing is to support and contribute to the University’s mission by providing an independent, objective assurance and consulting activity designed to add value and improve operations.

The mission is accomplished through the following activities by Internal Auditing:

Risk Assessment

Minimize risk to the resources and program objectives of the University

Planned Reviews

Recommendations

For improvements in operational systems and procedures and information technology

1.4 Objectives

Internal Auditing helps the University by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Our main objective is to promote effective and efficient control and use of University assets and information technology at a reasonable cost and to promote growth and savings opportunities.

These objectives are achieved through

• Review of operations and information technology at appropriate intervals to determine whether managers are efficiently and effectively carrying out their functions of planning, organizing, directing, and controlling in accordance with University policies, and procedures and in a manner that is consistent with objectives and high standards of administrative practice;
• Determination of the adequacy and effectiveness of the system of internal controls;
• Review of operations, information systems, and programs to ascertain whether performance is achieved with established objectives and goals;
• Review of compliance standards, ensure the philosophy and mission of the university are maintained; to determine compliance with standards of ethical conduct;
• Appraisal of the economy and efficiency with which resources are employed, identify opportunities to improve operating and technological performance, and recommend solutions to problems where appropriate;
• Review of the reliability and integrity of information and the means and technology used to identify, measure, classify, and report such information;
• Review of the integrity of means of safeguarding assets and, as appropriate, verify the existence of such assets;
• Review of the reliability, integrity, and security of information systems;
• Review of the established operational and information systems to ensure compliance with those policies, plans, procedures, laws, and regulations that could significantly impact on operations and reports and determine whether the organization is in compliance;
• Establishment of an appropriate working relationship with the independent auditors; minimize duplication of effort and reduce the involvement that would have to be expended by outside auditors; and
• Participation in management decisions that involve the development or modifications of operating policies and systems and information technology.

1.5 Values

In carrying out our mission, we share certain beliefs and values.

Our primary focus is to provide excellent service to the University. Our reviews will be preformed in accordance with applicable standards established by the American Institute of Certified Public Accountants and the Institute of Internal Auditors.

We are committed to the highest degree of fairness, integrity and ethical conduct in the performance of our mission. We will adhere to the code of Ethics as established by the Institute of Internal Auditors and the Association of college and University Auditors. We will uphold Tulane’s “core values” as delineated by the President’s Cabinet.

Further, we will not issue a report without first allowing the recipient the opportunity to review, challenge, question and respond to our findings and recommendations.

Our relationship with the University community will be characterized by respect, helpfulness, sharing, patience and openness. We are committed to maintaining our professionalism as internal auditors through continuance of our education and training.

Although we are a part of the University we are committed to maintaining our independence in defining the scope and objectives of our reviews.

1.6 Principal Accountabilities

The principal accountabilities of internal auditing are:

• Establishing procedures and programs for the internal auditing activity and performing its technical and administrative functions;
• Identifying activities requiring internal audit through communication with management and other key personnel and problem areas encountered during the performance of regular assignments;
• Preparing an audit plan before fiscal year-end for the ensuring fiscal year and submitting it to the audit Committee for approval;
• Maintaining a desired level of professional competence in internal auditing principles and practices;
• Undertaking internal audits and reviews in thorough and adequate manner, with a minimum interference with operations, so as to present results and recommendations that are complete and valid;
• Examining all existing systems and functions to evaluate efficient and effective use of resources, the accomplishment of goals and objectives, the reliability of information, the accuracy of records, the compliance with policies and procedures, and the integrity of controls;
• Publishing and distributing reports on the results of audit examinations, including recommendations for improvement; and
• Utilizing resources assigned to maximum advantage.

1.7 Authority

The authority of internal auditing follows:

• In carrying out their duties and responsibilities, members of the internal auditing department will have full, free, and unrestricted access to all university activities, records, property, and personnel.
• Internal auditing is a staff position and as such does not or shall not exercise direct authority over personnel or functions subject to review.

1.7 General Standards

Internal auditing should be independent of the activities audited. (IIA-STANDARD 100)

Internal Audits should be performed with proficiency and due professional care. (IIA-STANDARD 200)

The scope of the internal audit should encompass the examination and evaluation of the adequacy and effectiveness of the organization's system of internal control and the quantity of performance in carrying out assigned responsibilities.

Internal Audit work should include planning the audit, examining, and evaluating information, communicating results, and following up. (IIA-STANDARD 400)

The director of internal auditing should properly manage the internal auditing department. (IIA-STANDARD 500)