Charter

Definition

The Charter is a formal written document, approved and signed by the President of the College, that defines the purpose, authority, and responsibility of the Office of Internal Audit. It also establishes the position of the Office of Internal Audit within the College; gives the Office of Internal Audit an authorized unrestricted access to records, personnel, and physical properties relevant to the performance of the audit engagements; and defines the scope of work of the Office of Internal Audit.

Scope of Work

The scope of work of the Office of Internal Audit is to determine whether the organization network of risk management, internal controls, and governance processes, as designed and represented by management, are adequate and functioning in a manner to ensure that:

Risks are appropriately defined 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, rules, procedures and applicable laws and regulations.
Resources are acquired economically, used efficiently, and protected adequately.
Quality and continuous improvement are fostered in the organization's control process.
Significant legislative or regulatory issues impacting the organization are recognized and appropriately addressed.
Opportunities for improving management control, profitability, and the organization's image.

Authority

The staff members of the Office of Internal Audit report to the Director of Internal Audit, who functionally and Administratively reports to the President of the college.

The Director of Internal Audit is authorized to:

Have full and free unrestricted access to the President.
Have full and free unrestricted access to records, personnel, and physical properties relevant to the performance of the audit engagements.
Delegate duties, allocate resources, select subjects, determine scope of works, and select required techniques to accomplish audit objectives.
Obtain necessary assistance of personnel in audited units and other specialized services within or outside the College.

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

Perform any operational duties for the College.
Initiate or approve accounting transactions external to the Office of Internal Audit.
Direct the activities of any staff members who are not employed by the Office of Internal Audit, except those who have been assigned to assist the audit team.

Responsibility

The Director of Internal Audit, in the discharge of his/her duties, has the responsibility to:

Provide annual assessment on the effectiveness of the College's controls in managing its risks and activities.
Report potential improvements to those controls.
Provide periodic information on the status of the annual audit plan and the sufficiency of resources of the Office of Internal Audit.
Present a quarterly report to the Board of Trustees.

The Director and staff members of the Office of Internal Audit, in the discharge of their duties, have the responsibility to:

Develop an annual audit plan based on comprehensive risk assessment approach, including risks identified by the President and his or her leadership team.
Submit the annual audit plan to the President for review and approval, and to the Board of Trustees for acceptance.
Implement the annual audit plan as approved, including special requests by the President.
Issue periodic reports to the President disclosing the results of each audits.
Coordinate with and provide oversight of other controls and monitoring functions related to risk management, compliance, security, ethics, and environmental issues.
Not engage in any activities that would normally be expected to review or appraise.
Assist in the investigation of suspected fraudulent activities within the organization.
Consider the scope of work of the external auditors and regulators to provide wider audit coverage.

The Office of Internal Audit Office will meet or exceed the Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors.

Approved by Dr. Richard Fonte', President, on 09/13/2003.