Mission Statement and Charter

The Audit Services Charter identifies the purpose, authority and responsibility of the University of Louisville’s Audit Services Department.    The Charter is approved by the President and the Audit Committee of the Board of Trustees.

Mission

To provide independent and objective assurance and consulting services designed to add value and improve the University’s organization’s operations; and to help the organization accomplish its objectives by bringing a systematic, disciplined approach for evaluating and improving the effectiveness of risk management, control and governance processes.  In doing so, we will be considered among the leaders in our profession by providing an environment rewarding diversity, empowerment, innovation, teamwork and open communication.  All Audit Services’ endeavors are to be conducted in compliance with University objectives and policies, as well as the Code of Ethics and the International Standards for the Professional Practice of Internal Auditing, as defined by the Institute of Internal Auditors.

Authority

Audit Services reports functionally to the Audit Committee of the Board of Trustees and administratively to the Vice President Finance.  These reporting relationships assure departmental independence, promote comprehensive audit coverage and assure appropriate consideration of audit recommendations.  The Audit Committee approves all decisions regarding the appointment or removal of the Director.  Audit Services is authorized to review all records of the University and related organizations and has full and complete access to all University activities, records, property and personnel reasonably necessary to perform the responsibilities of this function. Audit Services has no direct responsibility or any other authority over the areas it reviews.

Responsibilities

• Perform reviews of University operations and programs to ascertain whether University resources are employed efficiently and effectively and results of operations are consistent and aligned with the University’s goals and objectives.

• Assist management in the identification of operational areas where increased efficiency may result in cost savings to the University.

• Perform reviews and evaluations of the University’s system of internal controls to ensure controls are adequate. Determine compliance with relevant State and Federal Regulations and generally accepted accounting principles.

• Provide management advisory services during the planning, design, development and post-implementation of significant computer systems to ensure adequate controls are implemented, documentation is complete, systems are thoroughly tested before implementation and projected benefits are realized.

• Perform reviews of contractual agreements to ensure the propriety of payments and compliance with significant contract provisions. Review the books and records of contractors, where appropriate, to validate charges and identify any potential over payments.

• Provide management advisory services and perform audits and reviews as requested by management. Participate in special projects and problem-solving task teams formed by the University when applicable.

• Performs annual risk assessments and develops an audit plan that considers the results of the risk assessment in the audit plan.

• Consulting services may be provided by Audit Services. These engagements may range from formal to advisory activities such as serving on committees or project teams. Audit Services is expected to use professional judgment to determine the extent to which these services are provided.

• The Director will advise the Audit Committee of significant risks that management is not willing to resolve.

• Audit Services will complete a formal quality assurance program every five years.  In addition periodic internal quality assessment will be completed.

• From time to time Audit Services will be requested to perform special investigations in the areas of fraud or non-compliance with policies and various regulations.  Audit Services will consult with counsel to ensure the appropriate course of these investigations.

• Follow up to ascertain that appropriate action is taken on reported issues.

• Coordinate audit planning and scheduling activities with the external auditors when appropriate.