Policy 1301: Internal Audit: Charter  Responsible Office: Internal Auditor Responsible Area: President's Office

I.     PURPOSE

The purpose of this policy is to establish the role of the Internal Audit Office at Longwood. This charter identifies 
the purpose, authority, and responsibilities of the Office of Internal Auditor.

II.     POLICY  

A.  Mission and Reporting Relationship: Internal Audit is an independent appraisal activity established within the institution to examine and evaluate Longwood’s management systems. The University's administration has the primary responsibility for establishing and maintaining a sufficient system of internal controls. Internal Audit assists University administration in the effective discharge of its responsibilities by furnishing evaluations of departmental activities, recommendations for improvements in systems and procedures, and other information designed to promote effective controls.  The Longwood Internal Audit Office reports functionally to the Board of Visitors (BOV) and administratively to the President. Performance problems with the Internal Audit Department will be reported by the President to the BOV immediately. These reporting relationships ensure departmental independence, promote comprehensive audit coverage, and assure adequate consideration of audit recommendations.

B.  Responsibilities: Meaningful internal auditing requires cooperation among the Internal Audit Office, University administration, and the auditee. Each party’s responsibilities in this regard include but are not limited to the following:

1.  Internal Audit Office:

a.  Examine and evaluate the controls, policies and procedures, and systems in place to safeguard assets of the University.  

b.  Evaluate the reliability and integrity of information, and the efficient and 
effective use of resources.

c.  Review compliance with policies, procedures, laws and regulations.

d.  Report results and make recommendations to administration and the Audit Committee.

e.  Coordinate audit planning and scheduling activities with the Auditor of Public Accounts (APA) , Joint Legislative Audit and Review Commission, and other external audit or review organizations.

2.  Administration:

a.  Support the Internal Audit Office and communicate this support within their units.

b.  Participate in the audit process.

c.  Provide appropriate, clear and consistent direction to the Longwood community through written policies and procedures.

d.  Follow-up on progress of corrective actions for audit findings within their units.

3.  Auditee:

a.  Cooperate with the audit process by providing unrestricted access to facilities, books and records, information, and employees.

b.  Respond in writing, within thirty (30) days, to all audit recommendations.

c.  Disagreements with recommendations or alternative solutions to identified findings are often acceptable.

d.  Each response should contain an estimated implementation date.

e.  Implement agreed-upon corrective action programs.

C.  Authorization: In the course of its work, Internal Audit has full and complete direct access to all Longwood books, records (manual and electronic), physical properties, and employees relevant to the subject of review. All documents and information given to Internal Audit during their work will be handled in the same prudent manner that the University expects of the employees normally accountable for them.  The Internal Audit Office has neither direct responsibility for, nor authority over, any of the activities, functions, or tasks it reviews.  Accordingly, Internal Audit does not develop or write policies or procedures that they may later be called upon to evaluate. They may review draft materials, developed by management, for propriety and/or completeness. However, ownership of, and 
responsibility for these materials remains with management, not Internal Audit.

D.  Audit Standards and Ethics: All audit work meets the Standards for the Professional Practice of Internal Auditing and Code of Ethics promulgated by the Institute of Internal Auditors, Inc.  The department is expected to consistently demonstrate high standards of conduct and ethics as well as appropriate judgment, independence, and discretion.  Members maintain a professional image and protect auditee confidences and confidential information.

E.  Selecting and Scheduling Audits: The Director prepares an annual Internal Audit Plan for approval by the BOV. Candidate projects come from a risk assessment questionnaire, recommendations by senior administration, regular coverage of large functional operations (cashiering, accounts payable, etc), and special requests.

F.  Reporting: All audit work is summarized in timely written reports distributed to an appropriate list of recipients. In general, reports are distributed to all members of the BOV, the President, the Chief Administration and Finance Officer, the APA, as well as the auditee, their immediate supervisor, and other department heads affected by audit findings. Special request reports may have a more limited distribution.

1.  Internal Audit will provide administration with adequate time to prepare responses to audit report findings before distributing the reports to appropriate recipients outside of the University's management.

2.  A summary of all work performed during the current fiscal year will be prepared and presented to the BOV on a quarterly basis.

Approved by the Board of Visitors January 29, 1999.
Revised and approved by the Board of Visitors, September 7, 2002.

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