Section 4.1 Guidelines for the Internal Audit Function
Issued: September 2008
Replaces: October 2001
Pursuant to 5 Policies of the Board E-2, the following guidelines govern the internal audit function of Southern Illinois University.
- Internal Audit Plan
The scheduled program of internal audits will be specified annually in an Internal Audit Plan approved by the President. The Executive Director of Audits will develop a proposed schedule of internal audits to be completed during the following fiscal year. The plan will include an allocation of time for special assignments. The proposed schedule will be transmitted to the Chancellors for their reactions. Following Chancellor reactions, the schedules will be forwarded to the President for review. After review by the President, the plan will be presented to members of the Board of Trustees’ Audit Committee for reactions. Once such reactions have been received, the President will finalize and approve the Internal Audit Plan for the following fiscal year. A copy of that plan will be transmitted by the President to all members of the Board of Trustees and the Chancellors.
During the course of the year, amendments to the plan may be made, after appropriate consultation with the Chancellors and the President; the Audit Committee will be apprised of significant changes. Special audits not included in the plan may be initiated by the Audit Committee, as specified in III Bylaws 6-6, by the President, or by a Chancellor.
When the Executive Director of Audits becomes aware of occurrences or activities believed to constitute possible material violations of law, LAC Guidelines, institutional policy, or generally accepted accounting practices, that Officer will report that awareness to the appropriate Chancellor and the President. In addition, when a possible material violation of law is involved, it will be reported to the Chairperson of the Audit Committee by the President or, when appropriate, by the Executive Director of Audits.
- Internal Audit Report Distribution
Preliminary Report. The Executive Director of Audits will be responsible for reporting in writing on audit findings. Upon completion of the audit, a preliminary report will be prepared and reviewed with the audited department in an exit conference. The purpose of this review will be to resolve any questions of fact and to assure a mutual understanding of the findings and recommendations.
Final Report. Following the preliminary audit report review, a final audit report for each audited function will be prepared. A copy of the final report will be distributed to the head of the audited department, his or her supervisors, other departments affected by the recommendations, and the Chancellor. The Executive Director of Audits will request a response to the audit recommendations from the appropriate Chancellor or that officer’s designee and will include in the request a proposed date for completion. Upon receipt of the response, the Executive Director of Audits will forward a copy of the final report including the response to the President. The Executive Director of Audits will comment as to the adequacy of the response and will indicate an appropriate period of time for follow-up on the response. The follow-up will be to determine if the necessary action as indicated by the response has been taken on the audit recommendations. The Executive Director of Audits will report in writing the results of these follow-up activities to the President, appropriate Chancellor, and others involved in the audit process.
Information contained in internal audit communications is exempt under the Illinois Freedom of Information Act and is for the exclusive use of University-related persons who need the information in order to discharge their institutional administrative or policy-making duties. No use of audit information for other than that exclusive purpose is authorized.
- Quarterly Audit Progress Reports
The Executive Director of Audits will prepare a quarterly report reflecting the progress made toward accomplishment of the Internal Audit Plan. The report shall include a summary for each internal audit report and the affected units’ responses. Copies of the quarterly report will be transmitted to the President, the Chancellors, and to members of the Audit Committee.
- Contracted Audits and Audits by Other Agencies
The Chancellor of each University will be responsible for advising the Executive Director of Audits of any audits, other than the routine annual external audit, being conducted at his or her University by an external agency. In addition, the Chancellors will be responsible for advising the Executive Director of Audits of any requests for contracted audit services and will be responsible for forwarding a copy of such requests and the resulting audit reports to the Executive Director of Audits.
- Audit Committee Involvement
Audit Committee involvement in the Internal Audit function is specified in III Bylaws 6.
Last updated: 16 Feb 2009