Charter

This charter establishes the purpose, authority and responsibilities of the Internal Audit Department of the University of Hartford.

Purpose

Internal auditing is an independent appraisal activity established to evaluate the adequacy and cost effectiveness of the University’s systems of internal control, (administrative and accounting) as well as the efficiency of operations present within the University.

The Internal Audit Department supports members of the University in the effective discharge of their responsibilities of planning, accounting, stewardship and control in accordance with the policies and objectives of University of Hartford Management and the Board of Regents. To this end, internal auditing provides analyses, appraisals, recommendations, counsel and information concerning the activities examined.

All endeavors of the Internal Auditing Department are to be conducted in compliance with objectives and policies established by the board of regents and the officers of the University, as well as the Code of Ethics and the Standards for the Professional Practice of Internal Auditing, which are promulgated by the Institute of Internal Auditors, Inc.

Authority

The Internal Audit Department reports administratively to the vice president for finance and administration and has a direct and unrestricted reporting relationship to both the Audit Committee of the Board of Regents and the Officers of the University. Periodic activity report programming shall be prescribed by the president, the vice president for finance and administration and the audit committee providing the following:

• Written and oral reports, at least semi-annually, of activity including, but not limited to, the annual internal audit plan and summary statement and the status of engagements completed and/or in process
• Written and oral reports at meetings called by the Chair of the Audit Committee of the Board of Regents
• Special written and oral reports as directed by the President and/or the Chair of the Audit Committee of the Board of Regents

These reporting relationships ensure departmental independence, promote comprehensive audit coverage, and assure adequate consideration of the audit recommendations.

Additionally, the Internal Audit Department regularly informs each dean and director of the respective colleges and University departments about audit activities within their areas of responsibility.

In undertaking any audit, subject to any restrictions on privileges at law and with stringent accountabilities of safekeeping and confidentiality, this department is authorized to have unlimited access to all University activities, records, property and employees on a need-to-know basis.

This department is a staff function that has no direct responsibility for or authority over activities that are reviewed. Therefore, the internal audit will neither make financial or operating decisions nor direct personnel to change work methods or take corrective action in response to audit recommendations. Internal audit’s review and appraisal of activities does not relieve other persons in the University of any of their responsibilities and of establishing an adequate system of internal control.

A system of internal control is defined as those elements of an organization including, but not limited to, its resources, systems, processes, culture, structure and tasks that, taken together, support people in the achievement of the organization’s objectives. These objectives may fall into one or more of the following categories:

• Effectiveness and efficiency of operations
• Reliability of internal and external financial reporting
• Compliance with applicable laws, regulations and internal policies

1.  
   • Appraising the effectiveness and application of administrative, financial controls and the reliability and integrity of information that are developed within the University
   • Evaluating the sufficiency of and adherence to University plans, policies, and procedures and compliance with applicable governmental laws, regulations and generally accepted accounting principles
   • Ascertaining the adequacy of controls for safeguarding University assets against loss through inefficiency, waste, negligence or fraud, and when appropriate, verifying the existence of assets
   • Conducting appraisals of effectiveness and efficiency in the use of University resources and making appropriate recommendations to management
   • Reviewing operations or programs to ascertain if results are consistent with established objectives, goals and if the operations or programs are being carried out as planned
   • Assisting in the improvement of operations by making appropriate constructive suggestions and recommendations
   • Participating in manual and automated system design as an advisor of internal controls
   • Investigating reported occurrences of fraud, embezzlement, theft, waste, etc., and recommending controls to prevent or detect such occurrences
   • Performing special reviews requested by University management or the Board of Regents
   • Developing both a long-range plan and an annual audit plan using risk analysis  
   • Obtaining input from University senior management, external auditors, the president and vice president for finance and administration, and the Audit Committee of the Board of Regents for such plans
   • Acknowledging the internal auditing activities as a diagnostic tool for identifying areas requiring improvement
   • Communicating the Charter and Mission of the Internal Audit Department with consistency and clarity to units for which they are responsible
   • Participating in the auditing process in order to make the internal audit function effective
   • Providing effective, consistent and thorough written procedures for all matters of a fiscal nature
   • Advising the Internal Audit Department of all matters affecting the fulfillment of its responsibilities, including the distribution of existing and newly approved policies and procedures, and deviations thereto, within each senior manager’s areas of responsibilities

2. Although adoption of audit recommendations is encouraged, appropriate disposition will be the responsibility of the applicable operating managers and, if necessary, senior management and/or the officers of the University. Management is responsible for ensuring appropriate actions are taken to address audit recommendations.

   Responsibilities

   The professional responsibilities of the Internal Audit Department include assessing the various functions and control systems in the University and advising management concerning their condition. The fulfillment of this accountability includes the following:

   The responsibilities of Senior Management include
   

   This charter is approved by the Audit Committee of the Board of Regents and the Officers of the University of Hartford. The Audit Committee of the Board of Regents reserves the right to modify the Charter when necessary.