Division Of Audit and Compliance Charter
In 2005, the Florida A&M University Board of Trustees (BOT) approved Resolution 14-05 adopting a university-wide compliance program as the foundation of the internal control and compliance environment. In support of the compliance program, the BOT maintains an institution–wide internal compliance and audit function that is an integral component of the governance structure. Through its annual program of risk-based audits and compliance assessments, the Division of Audit and Compliance provides insight on the mitigation of business risk to assist the BOT and management in the effective discharge of their responsibilities as they relate to the University policies, processes, programs, information systems, internal controls, and management reporting.
MissionThe Division of Audit and Compliance serves as a proactive business partner with Florida A&M University management to upgrade business processes, controls, compliance mechanisms, and technologies to:
· Anticipate and aggressively manage business risks.
· Ensure strong stewardship and management accountability at all levels.
· Ensure the integrity of operational and financial information.
The Division of Audit and Compliance serves Florida A&M University by cultivating a culture of compliance and nurturing core values of efficiency, effectiveness, integrity, accountability, and respect; upholding the highest professional standards; recruiting, training and developing future managers for the institution; providing high quality, cost effective audit and management services; and communicating value-added outcomes to the BOT and senior management.
Responsibilities within the Organization
The position of Vice President for Audit and Compliance is one of significant trust and responsibility. The Vice President for Audit and Compliance is hired by the University President. The Vice President may be terminated by the University President in consultation with the Chair of the Audit Committee of the Board of Trustees. The Vice President for Audit and Compliance as the University Compliance Officer and Chief Audit Executive, reports functionally to the Chair of the Board of Trustees, the Chair of the Audit and Compliance Committee of the Board of Trustees, and the University President and reports administratively and operationally to the University President. The Vice President is responsible for leading and managing the development and execution of institution-wide compliance and audit plans that focus on assessing and enhancing internal control and compliance infrastructures that support and advance Florida A&M University’s core mission of inspirational teaching, exemplary research, and meaningful public and community service.
In particular, the duties and responsibilities of the Division of Audit and Compliance (Division) include:
· Conduct periodic university-wide risk assessments.
· Guide the development of policies and procedures, identify internal controls, create self-assessment tools, conduct ongoing monitoring, and develop training in furtherance of a risk-based compliance action recommended by the University President and approved by the Board of Trustees.
· Provide internal audit and consulting services in accordance with a risk-based work plan recommended by the University President and approved by the Board of Trustees.
· Investigate allegations of fraud, waste, abuse, and other wrongdoing that may violate the University Code of Conduct.
· Assist the University Police with criminal financial investigations.
· Monitor the disposition of planned corrective actions that result from significant observations or recommendations of the Division or from external regulatory agencies.
· Keep the University President, senior management, and the Audit Committee of the BOT apprised of significant results of the activities of the Division.
· Provide training to the University community on matters for which the Division has expertise.
· Ensure effective coordination and cooperation with external auditors with a view toward avoiding any duplication of effort.
· Support the University President and senior management, as requested, in any manner that improves the overall performance of the University.
· Maintain a proper balance among audits, investigations, consulting services, and other activities of the Division.
Scope of Authority
The Division provides institutional-wide services to all entities and subsidiaries of Florida A&M University and including all schools, colleges, responsibility centers, central administrative departments, auxiliary enterprises, centers, and institutes. Consequently, the Division has authority to act with respect to the above-mentioned entities and subsidiaries of Florida A&M University. All Division personnel have unlimited and unrestricted access to all data, books, records, files, property, and personnel of Florida A&M University as necessary to carry out their duties and responsibilities.
In order to maintain an effective spirit of independence and objectivity, the Division shall have no day-to-day authority or operating responsibilities for the management processes, activities, or the internal controls that is audits or reviews. Thus, compliance and audit activities do not relieve University administrators, staff and faculty of the responsibilities assigned to them.
The Division communicates to senior and operating management in the form of written reports, consultation, or advice. Written reports include both recommendations and management comments itemizing specific actions taken or planned to mitigate identified risks and to ensure that operational objectives are achieved. These outcomes are also communicated to the Board of Trustees Audit and Compliance Committee as appropriate.
The Vice President for Audit and Compliance shall report to the University President and Chair of the Audit and Compliance Committee any allegations of significant wrongdoing, including any wrongdoing for personal financial gain, by or about a Vice President or any other employee, or any other allegations that if true could cause significant harm or damage to the reputation of the University. Any such matters will be reported to the Chair of the Board of Trustees at the discretion of the University President or Chair of the Audit and Compliance Committee.
The Vice President for Audit and Compliance shall report directly to the Chair of the Audit and Compliance Committee and Chair of the Board of Trustees any allegations by or about the University President. Any such matters will be reported to the full Board of Trustees at the discretion of the chairs.
Any allegations of significant wrongdoing against the University President are not to be handled internally and are not to be investigated by the Division of Audit and Compliance. Instead, the Vice President for Audit and Compliance must refer that investigation to another State University’s investigative unit or a state agency’s investigative unit. The Vice President for Audit and Compliance may serve as the University contact to assist the external entity in its investigation. The external investigator reports to the Chair of the Board of Trustees and the Chair of the Audit Committee. The results of the investigation should be reported directly to Chair of the Board of Trustees and the Chair of the Audit Committee.
Any allegations related to the Vice President for Audit and Compliance shall be reported to the University President and Chair of the Audit and Compliance Committee.
Any allegations of significant wrongdoing against the Vice President for Audit and Compliance are not to be handled internally and are not to be investigated by the Division of Audit and Compliance. Instead, the University President and/or Chair of the Audit and Compliance Committee must refer that investigation to another State University’s investigative unit or a state agency’s investigative unit. The President may appoint a University contact to assist the external entity in its investigation. The external investigator reports to the University President and the Chair of the Audit Committee. The results of the investigation should be reported directly to University President and the Chair of the Audit Committee.
Professional Standards and EthicsAudit and compliance activities shall be performed according to appropriate professional standards, including but not limited to, generally accepted auditing standards as advocated by the Institute of Internal Auditors in Standards for the Professional Practice of Internal Auditing, the General Accounting Office in Standards for Audits of Governmental Organizations Programs Activities and Functions, and the American Institute of Certified Public Accountants in Statement on Auditing Standards. Members of the Division have the responsibility to maintain exemplary ethics, integrity and objectivity in the performance of their duties.