MISSION AND SCOPE OF WORK
Internal auditing is an
independent, objective, assurance and consulting activity
established within the district, designed to add value and improve
an organization’s operations. It helps an organization accomplish
its objectives by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control
and governance processes.
The objectives of internal auditing
are to assist the board, superintendent, and management of the
district in the effective discharge of their responsibilities by
furnishing them with analyses, appraisals, recommendations, counsel,
and information concerning the activities reviewed and by promoting
effective control at reasonable cost.
The scope of internal auditing
encompasses the examination and evaluation of the adequacy and
effectiveness of the organization’s system of internal control and
the quality of performance in carrying out assigned
responsibilities. It includes:
·
Reviewing the
reliability and integrity of financial and operating information and
the means used to identify, measure, classify, and report such
information.
·
Reviewing the systems
established to ensure compliance with those policies, plans,
procedures, laws, and regulations which could have a significant
impact on operations and reports and whether the organization is in
compliance.
·
Reviewing the means
of safeguarding assets and, as appropriate, verifying the existence
of such assets.
·
Reviewing and
appraising the economy and efficiency with which resources are
employed.
·
Reviewing operations
or programs to ascertain whether results are consistent with
established objectives and goals and whether the operations or
programs are being carried out as planned.
RESPONSIBILITY
The internal audit department is
established by the board of trustees, and its responsibilities are
defined by the board of trustees. Responsibilities include, but are
not limited to, the following:
·
Establishing policies
for the auditing activity and directing its technical and
administrative functions.
·
Developing a flexible
annual audit plan using an appropriate risk-based methodology.
·
Examining the
effectiveness of all levels of management in their stewardship of
district resources and their compliance with established policies
and procedures.
·
Evaluating the
economy and efficiency with which resources are employed, identify
opportunities to improve operating performance, and recommend
solutions to problems where appropriate.
·
Recommending
improvement of management controls designed to safeguard district
resources, and ensure compliance with government laws and
regulations.
·
Authorizing the
publication of reports on the results of audit examinations,
including recommendations for improvement.
·
Performing and
reporting on special reviews as may be requested by the
Superintendent of Schools, the Board of Trustees, or others (i.e.
TEA, state auditors, school attorney, etc.).
INDEPENDENCE
To provide for the independence of
the internal audit department, the internal auditor will report
administratively to the superintendent and functionally to the board
of trustees. Administrative issues might include personnel issues
such as leave, time and attendance, performance reviews, etc.
Functional issues might include the carrying out of specific
responsibilities as those mentioned in the foregoing paragraph.
AUTHORITY
Authorization is granted for full
and complete unrestricted access to any of the district’s records
(either manual or electronic), physical properties, and personnel
relevant to a review. Documents and information given to internal
auditors during a periodic review will be handled in the same
prudent manner as by those employees normally accountable for them.
The internal auditor shall have
access to the superintendent and take directly to the superintendent
matters he/she believes to be of sufficient magnitude and importance
to require immediate attention.
Internal auditors have no direct
responsibility or any authority over any of the activities or
operations that they review. They should not develop and install
procedures, prepare records, or engage in activities which would
normally be reviewed by internal auditors. This does not preclude
internal auditors from serving in an advisory capacity in the
implementation of improvements or the establishment or re-designing
of activities, policies, or information systems. Additionally, this
restriction shall not prevent internal auditors from performing
analysis and recommending alternative courses of action to
management.
PROFESSIONAL STANDARDS
The operating practices and
procedures of the internal audit department will be in accordance
with the International Standards for the Professional Practice of
Internal Auditing, established by the Institute of Internal
Auditors.
REPORTING
A preliminary written report will
be prepared and issued by the internal auditor following the
conclusion of each audit and will be distributed to appropriate
administrative and management officials. The manager of the
activity or department receiving the internal audit report will be
provided an opportunity to respond to the preliminary report. That
response will indicate what actions were, or will be, taken in
regard to the specific findings and recommendations in the internal
audit report. If appropriate, a timetable for the anticipated
completion of these actions will be included.
Subsequently, a copy of the full
report with management’s response will be issued to the board of
trustees, superintendent and appropriate administrators responsible
for the area audited.
Approved: March 26, 1997
Amended: March 25, 1998
July 28, 2004
Original signatures on file.
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