Charter

1. Mission and Scope of Operations

The mission of the internal audit function is to provide independent, objective assurance and consulting services intended to add value to the University’s operations. The internal audit function’s scope of operations is by its very nature quite expansive. The internal audit function assists the University in fulfilling its vision, mission, strategic initiatives, and objectives, while adhering to its core values, by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of enterprise-wide risk management, internal control systems, and governance processes.

Ultimately, the internal audit function helps ensure:

Risks are appropriately identified and managed.
Significant financial, managerial, and operating information is accurate, reliable, and timely.
University resources are used efficiently and adequately safeguarded.
University operations are transacted in accordance with sufficient internal controls, good business judgment, and high ethical standards.
Quality and continuous improvement are fostered in the University’s internal control processes.

Opportunities for improving the University’s internal controls may be identified during internal audits; these opportunities will be communicated to the Audit Committee of the Board of Trustees, the Vice President of Business and Finance, and other appropriate members of University management.

2. Accountability

The Associate Vice President of Tax Compliance and Internal Audit shall be directly accountable to the Audit Committee of the Board of Trustees to:

Provide from time to time an assessment on the adequacy and effectiveness of the University’s processes for controlling its activities and managing its risks on an enterprise-wide basis.
Report significant issues related to the processes for controlling the activities of the University.
Periodically provide information on the status and results of the Annual Internal Audit Plan and the sufficiency of the internal audit function’s resources.
Coordinate with other control and monitoring functions of the University where appropriate.

3. Independence

Independence is absolutely essential to the effectiveness of the internal audit function. To provide for the independence of the internal audit function, the Associate Vice President of Tax Compliance and Internal Audit shall report functionally to the Audit Committee of the Board of Trustees and administratively to the President Moreover, the Associate Vice President of Tax Compliance and Internal Audit shall meet with the Audit Committee of the Board of Trustees periodically to report his plans for internal audit activity, the results of completed internal audit activity, and to provide any other information or assistance which the Audit Committee of the Board of Trustees may require from time to time. In addition, the Associate Vice President of Tax Compliance and Internal Audit shall have direct access at all times to the President and the Audit Committee of the Board of Trustees should matters of immediate significance arise which require their attention.

4. Authority

Internal audit coverage is by necessity enterprise-wide and no function, activity, department, or unit of the University is exempt from audit and review. The Associate Vice President of Tax Compliance and Internal Audit, and anyone engaged or acting on his behalf, is hereby duly authorized without limitation by the Audit Committee of the Board of Trustees to:

Have free, full, unrestricted, and unfettered access to all University functions, records, property, activities, manual and automated systems, and personnel.
Have free, full, unrestricted, and unfettered access to all third-party institutions, organizations, and individuals who have business dealings with the University.
Have free, full, unrestricted, and unfettered access to the Audit Committee of the Board of Trustees and the Vice President of Business and Finance.
Allocate resources, set frequencies, select subjects, determine scopes of work, and apply appropriate techniques required to accomplish the internal audit function’s objectives.
Obtain the necessary assistance of personnel in functions, departments, and/or units of the University where audits are performed, as well as other specialized services from within or outside the University.

The Associate Vice President of Tax Compliance and Internal Audit, and anyone engaged or acting on his behalf, is hereby expressly prohibited from:

Performing any financial or operational duties for the University.
Initiating or approving accounting transactions external to the internal audit function.
Directing University personnel to change work methods or take corrective action in response to audit suggestions; acceptance of audit suggestions is the responsibility of University management.

Notwithstanding the foregoing, it is hereby expressly noted that the Associate Vice President of Tax Compliance and Internal Audit serves the University in a dual role as both its chief internal auditor and chief tax compliance officer. Accordingly, nothing in this Internal Audit Charter shall be construed in any manner which would inhibit the Associate Vice President of Tax Compliance and Internal Audit from performing his assigned duties.

5. Standards of Audit Practice

The Associate Vice President of Tax Compliance and Internal Audit shall at all times conduct all internal audits in accordance with the International Standards for the Professional Practice of Internal Auditing adopted by The Institute of Internal Auditors; these standards are hereby specifically incorporated by reference. Furthermore, it is specifically acknowledged that the International Standards for the Professional Practice of Internal Auditing may change from time to time; the Associate Vice President of Tax Compliance and Internal Audit shall adhere to the most recently adopted version of these standards available at www.theiia.org.

6. Code of Ethics

The Associate Vice President of Tax Compliance and Internal Audit shall at all times meet or exceed the ethical standards delineated by The Institute of Internal Auditors in its Code of Ethics; this code is hereby specifically incorporated by reference. Furthermore, it is specifically acknowledged that the Code of Ethics may change from time to time; the Associate Vice President of Tax Compliance and Internal Audit shall adhere to the most recently adopted version of this code which is available at www.theiia.org.