University of Wyoming Internal Audit Charter

 

Internal Audit Mandate

The University of Wyoming Board of Trustees empowers the internal audit function to provide the board and senior management with objective assurance, advice, insight, and foresight. The internal audit function will carry out this mandate by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of governance, risk management, and control processes throughout the organization.

Purpose, Process, and Mission

The purpose of the University of Wyoming’s Internal Audit department is to provide independent, objective assurance and consulting services designed to add value and improve university operations. This purpose is established by the Institute of Internal Auditors and reciprocated in the Internal Audit Charter of the University of Wyoming. Internal auditing strengthens the University's ability to create, protect, and sustain value by providing the board and management with independent, risk-based, and objective assurance, advice, insight, and foresight.

Audits are performed based on a risk-based audit plan that is flexible so that Internal Audit can respond to emerging risks to include being one point of contact for addressing violations of laws, misuse of university resources, fraud, waste, abuse, etc., and cooperate with other units to coordinate a review of those concerns as deemed appropriate. 

The process of performing audits includes an initial risk assessment, the development of an audit program, testing, communication of results, collaboration, finalization of recommendations, obtaining management’s action plan to mitigate risks, and reporting to the board for evaluation of management’s response relative to the board’s risk tolerance.

The mission of Internal Audit is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight. The Internal Audit department helps the University of Wyoming accomplish its strategic objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.

Commitment to Adherence to the Global Internal Audit Standards

The Internal Audit department will govern itself by adherence to the mandatory elements of The Institute of Internal Auditors (IIA) Global Internal Audit Standards. 

Authority

The Director of Internal Audit will report functionally and administratively to the Fiscal and Legal Affairs Committee of the Board of Trustees.  Administrative tasks (i.e., approval of leave, and expenditures) will be provided by the Office of the President.

To establish, maintain, and assure that the University of Wyoming’s Internal Audit department has sufficient authority to fulfill its duties, the Fiscal and Legal Affairs Committee will:

• Approve the Internal Audit department’s charter.
• Approve the risk-based Internal Audit plan.
• Approve the Internal Audit department’s budget and resource plan.
• Receive communications from the Director of Internal Audit on the Internal Audit department’s performance relative to its plan and other matters.
• Approve decisions regarding the appointment and removal of the Director of Internal Audit.
• Approve the remuneration of the Director of Internal Audit.
• Make appropriate inquiries of management and the Director of Internal Audit to determine whether there is inappropriate scope or resource limitations.

The Director of Internal Audit will have unrestricted access to, and communicate and interact directly with, the Fiscal and Legal Affairs Committee, including in private meetings without management present.

The Fiscal and Legal Affairs Committee authorizes the Internal Audit department to:

• Have full, free, and unrestricted access to all functions, records, property, and personnel pertinent to carrying out any engagement, subject to accountability for confidentiality and safeguarding of records and information.
• The Internal Audit coverage may extend to all areas of the University of Wyoming, including all separately appropriated budgets and related blended component units.
• Allocate resources, set frequencies, select subjects, determine scopes of work, apply techniques required to accomplish audit objectives, and issue reports.
• Obtain assistance from the necessary personnel of the University of Wyoming, as well as other specialized services from within or outside the University of Wyoming, to complete the engagement.

Independence and Objectivity

The Director of Internal Audit will ensure that the Internal Audit department remains free from all conditions that threaten the ability of Internal Auditors to carry out their responsibilities in an impartial and unbiased manner, including matters of audit selection, scope, procedures, frequency, timing, and report content. If the Director of Internal Audit determines that independence or objectivity may be impaired in fact or appearance, the details of impairment will be disclosed to appropriate parties.

Internal Auditors will maintain an impartial and unbiased mental attitude that allows them to perform engagements objectively and in such a manner that they believe in their work product, that no quality compromises are made, and that they do not subordinate their judgment on audit matters to others.

Internal Auditors will have no direct operational responsibility or authority over any of the activities audited. Accordingly, Internal Auditors will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair judgment, including:

• Assessing specific operations for which they had responsibility within the previous year.
• Performing any operational duties for the University of Wyoming or its affiliates.
• Initiating or approving transactions external to the Internal Audit department.
• Directing the activities of any University of Wyoming employee not employed by the Internal Audit department, except to the extent that such employees have been appropriately assigned to auditing teams or to otherwise assist Internal Auditors.

Where the Director of Internal Audit has or is expected to have roles and/or responsibilities that fall outside of Internal Auditing, safeguards will be established to limit impairments to independence or objectivity.

Internal Auditors will:

• Disclose any impairment of independence or objectivity, in fact or appearance, to appropriate parties.
• Exhibit professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
• Make balanced assessments of all available and relevant facts and circumstances.
• Take necessary precautions to avoid being unduly influenced by their own interests or by others in forming judgments.

The Director of Internal Audit will confirm to the Fiscal and Legal Affairs Committee, at least annually, the organizational independence of the Internal Audit department.   The Director of Internal Audit will disclose to the Fiscal and Legal Affairs Committee any interference and related implications in determining the scope of Internal Auditing, performing work, and/or communicating results.

Scope of Internal Audit Activities

The scope of Internal Audit activities encompasses, but is not limited to, objective examinations of evidence for the purpose of providing independent assessments to the Fiscal and Legal Affairs Committee, management, and outside parties (as requested and approved by General Counsel) on the adequacy and effectiveness of governance, risk management, and control processes for the University of Wyoming. Internal Audit assessments include evaluating whether:

• Risks relating to the achievement of the University of Wyoming’s strategic objectives are appropriately identified and managed.
• The actions of the University of Wyoming’s officers, directors, employees, and contractors are in compliance with the University of Wyoming’s policies, procedures, and applicable laws, regulations, and governance standards.
• The results of operations or programs are consistent with established goals and objectives.
• Operations or programs are being carried out effectively and efficiently.
• Established processes and systems enable compliance with the policies, procedures, laws, and regulations that could significantly impact the University of Wyoming.
• Information and the means used to identify, measure, analyze, classify, and report such information are reliable and have integrity.
• Resources and assets are acquired economically, used efficiently, and protected adequately.

The Director of Internal Audit will report periodically to senior management and the Fiscal and Legal Affairs Committee regarding: 

• The Internal Audit department’s purpose, authority, and responsibility.
• The Internal Audit department’s plan and performance relative to its plan.
• Any changes that may affect the Internal Audit department’s charter or mandate.
• The Internal Audit department’s plan and budget, as well as resource requirements.
• Results of internal audit services, including conclusions, significant risk exposures and control issues, including fraud risks, governance issues, and other matters requiring the attention of, or requested by, the Fiscal and Legal Affairs Committee.
• Progress towards and results of a quality assurance and improvement program.
• Any response to risk by management that may be unacceptable to the University of Wyoming Board of Trustees.

The Director of Internal Audit also coordinates activities, where possible, and considers relying upon the work of other internal and external assurance and consulting service providers as needed.

Internal Audit will serve as one point of contact for the receipt of reports regarding suspected violations of laws, misuse of university resources, fraud, waste, abuse, etc., and cooperate with other units to coordinate a review of those concerns as deemed appropriate.

The Internal Audit department may perform advisory and related client service activities, the nature and scope of which will be agreed with the client, provided that the FLAC is aware of the allocation of resources, and the Internal Audit department does not assume management responsibility. Opportunities for improving the efficiency of governance, risk management, and control processes may be identified during engagements. These opportunities will be communicated to the appropriate level of management.

Responsibility

The Director of Internal Audit has the responsibility to:

• Submit, at least annually, to senior management and the Fiscal and Legal Affairs Committee a risk-based Internal Audit plan for review and approval.
• Communicate to senior management and the Fiscal and Legal Affairs Committee the impact of resource limitations on the Internal Audit plan.
• Review and adjust the Internal Audit plan, as necessary, in response to changes in the University of Wyoming’s business, risks, anonymous reports, operations, programs, systems, and controls.
• Communicate to senior management and the Fiscal and Legal Affairs Committee any significant interim changes to the Internal Audit plan.
• Ensure each engagement of the Internal Audit plan is executed, including the establishment of objectives and scope, the assignment of appropriate and adequately supervised resources, the documentation of work programs and testing results, and the communication of engagement results with applicable conclusions and recommendations to appropriate parties.
• Follow up on engagement findings and corrective actions, and report periodically to senior management and the Fiscal and Legal Affairs Committee any corrective actions not effectively implemented.
• Ensure the principles of integrity, objectivity, confidentiality, and competency are applied and upheld.
• Ensure the Internal Audit department collectively possesses or obtains the knowledge, skills, and other competencies needed to meet the requirements of the Internal Audit charter.
• Ensure trends and emerging issues/risks that could impact the University of Wyoming are considered and communicated to senior management and the Fiscal and Legal Affairs Committee as appropriate.
• Ensure emerging trends and successful practices in Internal Auditing are considered.
• Establish and ensure adherence to policies and procedures designed to guide the Internal Audit department.
• Ensure adherence to the University of Wyoming’s relevant policies and procedures, unless such policies and procedures conflict with the Internal Audit charter. Any such conflicts will be resolved or otherwise communicated to senior management and the Fiscal and Legal Affairs Committee.

Quality Assurance and Improvement Program

The Internal Audit department will initiate and maintain a quality assurance and improvement program that covers all aspects of the Internal Audit department. The program will include an evaluation of the Internal Audit department’s conformance with the Standards and an evaluation of whether Internal Auditors apply The IIA’s Code of Ethics.

The program will also assess the efficiency and effectiveness of the Internal Audit department and identify opportunities for improvement.  The Director of Internal Audit will communicate to senior management and the Fiscal and Legal Affairs Committee on the Internal Audit department’s quality assurance and improvement program, including results of internal assessments (both ongoing and periodic) and external assessments conducted at least once every five years by a qualified, independent assessor or assessment team from outside the University of Wyoming.