INTERNAL AUDITING CHARTER

Mission and Scope of Work

The mission of the University of Texas at San Antonio Office of Auditing and Consulting Services is to "Provide assurance and consulting services designed to add value and improve UTSA's operations." It helps the institution accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control, operational, and governance processes.

The scope of work of Auditing and Consulting Services is to determine whether UTSA's network of risk management, control, and processes, as designed and represented by management, is adequate and functioning in a manner to help ensure:

• Risks are appropriately identified and managed.

• Significant financial, managerial, and operating information is accurate, reliable, and timely.

• Employee's actions are in compliance with policies, standards, procedures, and applicable laws and regulations.

• Resources are acquired economically, used efficiently, and adequately protected.

• Programs, plans and objectives are achieved.

• Quality and continuous improvement are fostered in the institution's control process.

Opportunities for improving management control may be identified within Auditing and Consulting Services' scope of work. These opportunities will be communicated to the appropriate level of management.

Accountability

The Director of Auditing and Consulting Services, in the discharge of his/her duties, shall be accountable to the UTSA President and the Institutional Audit Committee to:

• Provide assessments on the adequacy and effectiveness of the organization's processes for controlling its activities and managing its risks in the areas set forth under the mission and scope of work.

• Report significant issues related to the processes for controlling the activities of the organization and its affiliates, including potential improvements to those processes, and provide information concerning such issues through resolution.

• Periodically provide information on the status and results of Auditing and Consulting Services' annual work plan and the sufficiency of department resources.

• Coordinate UTSA's interaction with the State Auditor's Office and other external audit entities.

Independence

To provide for the independence of the internal auditing activity, the Director of Auditing and Consulting Services reports directly to the UTSA President and must be free of all operational and management responsibilities that would impair his/her ability to review independently all aspects of the institution (per the Texas Internal Auditing Act, Section 2102, Government Code). The Director of Auditing and Consulting Services also has an indirect reporting relationship to the University of Texas System (UT System) Director of Audits who has responsibility for oversight of the internal auditing activity for the UT System and has the reporting responsibility for all components to the Board of Regents.

The Director of Auditing and Consulting Services is designated as the Chief Audit Executive of UTSA (per the Standards for the Professional Practice of Internal Auditing).

Responsibility

Audit Services has responsibility to:

• Develop a flexible annual work plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the UTSA President, Institutional Audit Committee, and the Board of Regents for review and approval as well as periodic updates.

• Implement the annual work plan, as approved, including as appropriate any special projects requested by executive management of the institution, UT System officials, or the Board of Regents.

• Have and maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this charter and the Texas Internal Auditing Act.

• Evaluate and assess significant merging/consolidating functions and new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.

• Issue periodic reports to the President and Institutional Audit Committee summarizing results of audit activities.

• Keep the President and Institutional Audit Committee informed of emerging trends and successful practices in internal auditing.

• Assist in the investigation of significant issues within the institution and notify appropriate members of executive management of the results.

• Consider the scope of work of the external auditors and regulators, as appropriate, for the purpose of providing optimal audit coverage to the institution.

• Conduct quality assurance reviews in accordance with professional Internal Auditing standards and periodically take part in an external peer review.

• Provide consulting and advisory services as appropriate.

• Guide the institution on control self-assessment by assisting managers with risk self-assessment and conducting self-audits.

• Provide information to the UT System Director of Audits as required or requested to fulfill the System-wide audit oversight and reporting responsibilities.

• File internal audit reports and related responses or action plans with the UT System Audit Office, budget division of the Governor's Office, State Auditor, and the Legislative Budget Board within two weeks after their presentation to the Institutional Audit Committee.

• Prepare the annual report required by the Texas Internal Auditing Act (Section 2102, Government Code) and submit the report to the UTSA President, UT System Audit Office, budget division of the governor's Office, State Auditor, and the Legislative Budget Board.

Authority

Auditing and Consulting Services staff are authorized to:

• Have full, free, and unrestricted access to all functions, activities, records, property, and information systems.

• Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.

• Obtain the necessary assistance of personnel in units where they perform audits, as well as other specialized services from within or outside the institution.

Auditing and Consulting Services staff are not authorized to:

• Perform any operational duties.

• Initiate or approve accounting transactions external to Audit Services.

• Direct the activities of any UTSA employee not employed by Audit Services, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the auditors.

Standards of Audit Practice

The activities of Audit Services will meet or exceed the Standards for the Professional Practice of Internal Auditing of The Institute of Internal Auditors. Audit Services will also abide by generally accepted government auditing standards, the Texas Internal Auditing Act, and University of Texas System guidelines and applicable UT System Policies .