External Audits and Auditors UPPS
No. 04.03.03
Issue No. 5
Effective
Date: 04/30/2009
Review: November 1 E4Y
01. POLICY
STATEMENT
01.01 This
UPPS establishes expected procedures and protocol for external audits.
02. DEFINITIONS
02.01 An
external audit is any review or investigation regarding compliance, financial
or operational information, safeguarding and verification of assets, economical
and efficient use of resources, and effectiveness of operations or programs
conducted by external agencies such as public accounting firms, governmental
auditors, regulatory offices, and funding sources.
02.02 This
definition excludes reviews by accrediting bodies and by consultants hired by
the university.
03. PROCEDURES
FOR THE MANAGERS OF AREAS AUDITED
03.01 Any
university department or operation which is contacted by an external auditor or
funding source about an audit is required to refer them to the university’s
Director of Audit and Compliance.
03.02 The
manager of the department or operation audited should submit responses to
external audit findings through the Director of Audit and Compliance and the
appropriate vice president for approval prior to release. The Director of
Audit and Compliance will not prepare responses for other departments but will
act in a review and advisory capacity.
03.03 If, at any time, the audited or other
university departments have questions about the audit or issues raised during
the audit, they should consult with the university’s Director of Audit and
Compliance.
03.04 The audited department’s manager should keep
a copy of all audit responses submitted, as well as copies of the final audit
report, in the department’s master files in accordance with state and
university records retention schedules.
03.05 Upon
receipt of a final audit report, the manager of the audited department has
primary responsibility for ensuring that management responses are implemented
within the time frame specified.
04. PROCEDURES
FOR AUDIT AND COMPLIANCE
04.01 The
Director of Audit and Compliance will function as the liaison between the
university and external auditors, coordinating audit efforts, and facilitating
their work on campus. In carrying out this responsibility, the Director of
Audit and Compliance will assist the University by ensuring that:
a. unnecessary duplication of work is minimized;
and
b. external auditors have access to appropriate university
information and personnel to ensure that information gathered is relevant,
complete, and appropriate.
04.02 The
Director of Audit and Compliance should advise the external auditor of expected
protocol (described in Section 05.).
04.03 The
Director of Audit and Compliance will ensure that copies of all external audit
reports are sent to the Director of Audits and Analysis at the Texas State
University System Office.
04.04 The
Director of Audit and Compliance will perform follow-up work, to ensure that
the management responses in each external audit are implemented within a
reasonable time frame. In the event that management responses have not or
cannot be implemented, the Director of Audit and Compliance shall notify the
vice president for the area audited, the TSUS Director of Audits and Analysis,
and other appropriate administrators to effect implementation or revise
procedures, as warranted by the circumstances.
05. PROTOCOL
EXPECTED DURING EXTERNAL AUDITS
05.01 Departments that request
delegated authority from the State Auditor’s Office to procure external audit
services need to comply with Texas Government Code Section 321.020.
External auditors are expected to follow the protocol described below when
conducting an audit of any department or operation of the university. All audit conferences must include managers
of the audited areas, as well as a representative of Audit and Compliance.
a. Auditors, representatives from Audit and
Compliance and officials responsible for the audited areas will hold an
entrance conference.
b. Representatives of Audit and Compliance and
the audited department will hold interim conferences when significant potential
problems are identified.
c. The parties will hold an exit conference to
review findings prior to preparing the final report.
d. The divisional vice president will attend or
send a representative to all conferences, as warranted.
e. The auditors will submit a draft audit report
to the Director of Audit and Compliance prior to preparation of the final audit
report.
06. REVIEWERS
OF THIS UPPS
06.01 Reviewers
of this UPPS include the following:
Position Date
Director of Audit and Compliance November 1 E4Y
07. CERTIFICATION
STATEMENT
This
UPPS has been approved by the following individuals in their official
capacities and represents Texas State policy and procedure from the date of
this document until superseded.
Director
of Audit and Compliance; senior reviewer of this UPPS
Special
Assistant to the President
President