The University of Toledo

Internal Audit Charter

Introduction

The Internal Audit Department reports to the Board of Trustees through the Board’s Audit Committee.

Responsibilities

The responsibilities of the Internal Audit Department include:

1. The performance of an independent assessment of the effectiveness of controls and practice, the accuracy of financial records and the effective, efficient and economical use of the University’s resources to insure compliance with the University’s policies and procedures, Federal and State laws and regulations, and generally accepted accounting practices.

1. The investigation, documentation and resolution of fraud claims.

1. The participation in the coordination of all external audits in the University.

1. The performance of an independent assessment that adequately safeguards that the University’s assets are in place.

1. The performance of an independent assessment of the effectiveness of the security measures in place to protect our students, faculty and staff from harm due to human activity or acts of natural disaster.

Authority

The Internal Audit Department shall have unfettered access to all University records and all areas of operation.

All information obtained by the Internal Audit Department staff in the course of performing their assigned duties shall be treated with confidentiality.

The Internal Audit Department has no authority or direct responsibility over the departments or activities it reviews.

Reporting

The Internal Audit Department shall provide the Chairman of the Board of Trustees’ Audit Committee, on an ongoing basis, the following:

1. An assessment of risk factors for all functions of the University subject to audit scrutiny and an assessment of the frequency of audit for each function.

1. Prior to the beginning of each fiscal year, an annual work plan covering a two-year period.

1. All complete audit reports and administrative responses.

1. All complaints received, including anonymous complaints.

1. Annually, a proposed departmental budget for the ensuing year as well as employee performance reviews and salary recommendations.

1. Quarterly, a review of year-to-date expenditures and expenditure-to-budget review.

Inaddition, the Internal Audit Department shall:

• Immediately notify the Committee Chair when significant issues regarding administrative action or functions are called into question. However, where an issue does not involve the President and wherever practical, the President should also be simultaneously notified of any significant issues.
   
• Immediately notify the Committee Chair of any requests for audit made by the administration.
  
  

Approved by the Board of Trustees on June 16, 2008

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