University of Kentucky Internal Audit Charter
Internal Audit is an independent and objective function which assists the University of Kentucky in the effective performance of their operational and fiduciary responsibilities with respect to proper internal controls. By monitoring areas of potential vulnerability and pursuing preventive measures, Internal Audit assists all members of the university community. Internal Audit has no authority over, nor direct responsibility for, any of the activities reviewed. The services performed by Internal Audit are assurance and advisory functions only, and in no way relieve business units of their responsibilities. To this end, Internal Audit will furnish University executive management (President, Executive Vice President for Finance & Administration, Executive Vice President for Health Affairs and Provost) with analyses, recommendations, and information concerning the activities examined.
Internal Audit governs its activity based on The Institute of Internal Auditors' mandatory guidance including the Definition of Internal Auditing, the Code of Ethics and the International Standards for the Professional Practice of Internal Auditing. In addition, the Internal Audit function adheres to the University of Kentucky Ethical Principles and Code of Conduct and other internal professional policies. Each member of the department is expected to consistently demonstrate high standards of conduct as well as appropriate judgment, independence and discretion.
Internal Audit provides assurance and advisory services to all entities and affiliates of the University of Kentucky. Internal Audit activity should be independent and free from interference in determining the scope of audits, performing audit work and communicating results. This independence is ensured through Internal Audit's reporting relationship to the President through the Executive Vice President for Finance and Administration and to the Audit and Compliance Committee (ACC) of the Board of Trustees. In carrying out these responsibilities, Internal Audit personnel have unrestricted access to all data, records, files, property and personnel of the University. University employees are requested to assist Internal Audit in fulfilling its roles and responsibilities.
Responsibilities of Internal Audit
1. Internal Audit Charter — At least annually, Internal Audit will review the Charter with the ACC for possible revisions based on industry standards; all charter revisions will be reviewed and approved by the ACC.
2. Work Plan — At least annually, Internal Audit will submit its Work Plan to the ACC for review and approval; any significant interim changes will also be submitted.
3. Progress Reports — Internal Audit will periodically provide a progress report summarizing audit activity to both University executive management and members of the ACC. In addition, Internal Audit will provide regular updates to the ACC regarding the effectiveness of the University's system of internal controls and compliance with applicable laws, regulations and University policies.
4. Final Audit Reports — Internal Audit will issue final audit reports to a standard distribution list for appropriate communication of results including members of the ACC, University executive management and independent auditors.
5. Quality Assurance — Internal Audit will communicate to both University executive management and the ACC on Internal Audit's quality assurance and improvement program, including results of ongoing internal assessments and external assessments conducted at least every five years.
6. Collaborations — Internal Audit will work collaboratively with the University's independent auditors so that efforts are not duplicated and resources are leveraged. Additional relationships and collaborations will be formed with other University functions to improve synergy.