UNIVERSITY OF TOLEDO

Internal Audit Charter

Introduction

Internal Audit and Operational Improvement Services at the University of Toledo is an independent appraisal activity established for the review of financial, compliance and operating activities as a service to management and the Board of Trustees. It is the policy of the University to maintain an internal audit function as an integral component of our internal control environment. This charter establishes the Internal Audit and Operational Improvement Services’ purpose, authority, and responsibilities, and is approved by the Board of Trustees.

Purpose 

The overall objective of the Internal Audit and Operational Improvement Services is to assist management in the effective discharge of its responsibilities by providing impartial analyses, appraisals, recommendations, and pertinent comments on the activities reviewed. The services are designed to evaluate the adequacy of controls and practices as they relate to the effective, efficient, economical and lawful use of the University’s resources. The Director of Internal Audit and Operational Improvement Services reports administratively to the Vice President of Finance and Administration and has unrestricted access to the President and the Committee on Finance/Information Technology.

Authority

The Director of Internal Audit and Operational Improvement Services is authorized to conduct comprehensive operational reviews and audits at the University. In addition, the Director will participate in the coordination of all external audits in the University. In carrying out the duties and responsibilities, departmental staff will have a complete and unfettered access to all University records such as properties, personnel records, reports and files in any and all locations, personnel relevant to a review and physical access to areas of operations (except as may be restricted by law). Documents and information given to departmental staff in the course of performing their assigned duties will be treated with confidentiality. To maintain independence, Internal Audit and Operational Improvement Services has no authority or direct responsibility over the activities it reviews or audits. Those activities remain the responsibility of management.

Responsibilities

The scope of services includes the review and analysis of the adequacy and effectiveness of the University's system of internal control. Audits are to be designed to provide reasonable (not absolute) assurance regarding achievement of management’s objectives in the following areas: 

• That information and the means used to gather, classify and report such information are reliable and relevant.

• That applicable laws, regulations, policies and procedures are being complied with.  

• That adequate safeguards over assets are placed in operation.  

• That efficient and effective methods of operation are being applied

In addition, services are to be provided to assist departments in improving operating processes, which will improve customer service as well as internal control.

Reporting

A written report will be prepared and issued by the Director of Internal Audit and Operational Improvement Services following the conclusion of each review. Distribution of that report will be limited as appropriate. On a quarterly basis, executive summaries of audit reports will be forwarded to the Committee on Finance/Information Technology of the Board of Trustees.