Office of Audits and Analysis - Sam Houston State University
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SAM HOUSTON STATE UNIVERSITY
Office of Audits and Analysis
CHARTER

INCLUDING MISSION STATEMENT, GOALS, AND OBJECTIVES

MISSION AND SCOPE OF WORK

The Office of Audits and Analysis at Sam Houston State University (the Department) is charged with assisting management to more effectively and efficiently control the functions under management’s direction. The Office of Audits and Analysis is an independent, objective, assurance and consulting activity designed to add value and improve Sam Houston State University’s operations. The Department will help Sam Houston State University accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The scope of work of the Department is to determine whether the Sam Houston State University’s network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:

  • Risks are appropriately identified and managed.
  • Interaction with the various governance groups occurs as needed.
  • Significant financial, managerial, and operating information is accurate, reliable, and timely.
  • Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
  • Resources are acquired economically, used efficiently, and adequately protected.
  • Programs, plans, and objectives are achieved.
  • Quality and continuous improvement are fostered in the university’s control process.
  • Significant legislative or regulatory issues impacting the university are recognized and addressed appropriately.

Opportunities for improving management control, profitability, and Sam Houston State University’s image may be identified during audits. They will be communicated to the appropriate level of management.

AUTHORITY

The organizational status of the Office of Audits and Analysis will be sufficient to permit the accomplishment of its audit responsibilities. The Director of Internal Audit at Sam Houston State University shall report directly to the Board of Regents through the Director of Audits and Analysis of the Texas State University System. The Director shall also have direct communication with the Board of Regents through the Chairman of the Audit and Finance Committee. Continued, regular communication with the Board helps assure independence and provides a means for the Board and the Director to keep each other informed on matters of mutual interest.

The Internal Audit Director and staff of the Department are authorized to:

  • Have unrestricted access to all functions, records, property, and personnel.
  • Have full and free access to the audit and finance committee.
  • Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.
  • Obtain the necessary assistance of personnel in units of the university where they perform audits, as well as other specialized services from within or outside the university.

The Internal Audit Director and staff of the Department are not authorized to:

  • Perform any operational duties for the university or its affiliates.
  • Initiate or approve accounting transactions external to the Department.
  • Direct the activities of any university employee not employed by the Department, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors.

ACCOUNTABILITY

The Internal Audit Director, in the discharge of his/her duties, shall be accountable to management and the audit and finance committee to:

  • Provide annually an assessment on the adequacy and effectiveness of the university’s processes for controlling its activities and managing its risks in the areas set forth under the mission and scope of work.
  • Report significant issues related to the processes for controlling the activities of the university and its affiliates, including potential improvements to those processes, and provide information concerning such issues through resolution.
  • Periodically provide information in the status and results of the annual audit plan and the sufficiency of department resources.
  • Coordinate with and provide oversight of other control and monitoring functions (risk management, compliance, security, legal, ethics, environmental, external audit).

RESPONSIBILITY

The primary responsibilities of the Department are:

  • Develop a flexible annual audit plan using an appropriate risk based methodology, including any risks or control concerns identified by management, and submit that plan to the audit and finance committee for review and approval as well as periodic updates.
  • Implement the annual audit plan, as approved, including as appropriate, any special tasks or projects requested by management and the audit and finance committee.
  • Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this Charter.
  • Evaluate and assess significant merging/consolidating functions and new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.
  • Issue periodic reports to the audit and finance committee and management summarizing the results of audit activities.
  • Keep the audit and finance committee informed of emerging trends and successful practices in internal auditing.
  • Provide a list of significant measurement goals and results to the audit and finance committee.
  • Assist in the investigation of significant suspected fraudulent activities within the university and notify management and the audit and finance committee of the results.
  • Consider the scope of work of the external auditors and regulators, as appropriate, for the purpose of providing optimal audit coverage to the university at a reasonable overall cost.

At no time will the Office of Audits and Analysis undertake any activities which would impair its independence in analyzing and reporting on University operations. Additional information regarding the Department’s functions, duties and procedures can be found in the University’s Administrative Procedures, Texas State University System’s Rules & Regulations, and the Internal Audit Policy.

GOALS AND OBJECTIVES

The Office of Audits and Analysis has established the following goals and objectives.

  • To provide adequate audit coverage for the university, while also performing all required functions, reviews, and support.
  • To provide objective advice, special assistance, and information, whether it pertains to a formal audit or special request, that is timely, relevant, and beneficial.
  • To provide support and assistance to outside auditors or cognizant agencies that will satisfy the outside parties, as well as applicable key administrators.

INDEPENDENCE

To provide for the independence of the Department, its personnel report to the Director of Internal Audit, who reports functionally to the audit and finance committee and administratively to the University President in a manner outlined in the above section on Accountability. It will include as part of its reports to the audit and finance committee a regular report on Department personnel.

SUMMARY OF DEPARTMENT STANDARDS

The Office of Audits and Analysis will accomplish its mission, goals, and objectives while adhering to the Standards for the Professional Practice of Internal Auditing. A summary of these standards not included above is detailed below.

  • Professional Proficiency. Internal audits will be performed with proficiency and due professional care.
    • Office of Audits and Analysis.
      • Staffing. The Office of Audits and Analysis will provide assurance that the technical proficiency and educational background of internal auditors are appropriate for the audits to be performed.
      • Knowledge, Skills, and Disciplines. The Office of Audits and Analysis will possess or obtain the knowledge, skills, and disciplines needed to carry out its audit responsibilities.
      • Supervision. The Office of Audits and Analysis will provide assurance that internal audits are properly supervised.
    • The Internal Auditor
      • Compliance with Standards of Conduct. Internal auditors will comply with professional standards of conduct.
      • Knowledge, Skills, and Disciplines. Internal Auditors will possess the knowledge, skills, and disciplines essential to the performance of internal audits.
      • Human Relations and Communications. Internal auditors will be skilled in dealing with people and in communicating effectively.
      • Continuing Education. Internal auditors will maintain their technical competence through continuing education.
      • Due Professional Care. Internal auditors should exercise due professional care in performing internal audits.
  • Performance of Audit Work. Audit work will include planning the audit, examining and evaluating information, communicating results, and following up.
    • Planning the Audit. Internal auditors will plan each audit.
    • Examining and Evaluating Information. Internal auditors will collect, analyze, interpret, and document information to support audit results.
    • Communicating Results. Internal Auditors will report the results of their audit work.
    • Follow Up. Internal Audit will follow up to ascertain that appropriate action is taken on reported audit findings.
  • Management of the Office of Audits and Analysis. The Director of Internal Audit will properly manage the Office of Audits and Analysis.
    • Purpose, Authority, and Responsibility. The Director of Internal Audit will have a statement of purpose, authority, and responsibility for the Office of Audits and Analysis.
    • Planning. The Director of Internal Audit will establish plans to carry out the responsibilities of the Office of Audits and Analysis.
    • Policies and Procedures. The Director of Internal Audit will provide written policies and procedures to guide the audit staff.
    • Personnel Management and Development. The Director of Internal Audit will establish a program for selecting and developing the human resources of the Office of Audits and Analysis.
    • External Auditors. The Director of Internal audit will coordinate internal and external audit efforts.
    • Quality Assurance. The Director of Internal Audit will establish and maintain a quality assurance program to evaluate the operations of the Office of Audits and Analysis.