Texas A

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Texas AM UniversityCouncil of Senior
BusinessAdministrators (CSBA)Review of System
Internal Audit Plan

• June 19, 2002

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TAMUS Internal Audit DepartmentTAMU, HSC, SAGO
Group

• Over 150 years of auditing and accounting
  experience
• Four Certified Internal Auditors
• Two Certified Information Systems Auditors
• Six Certified Public Accountants
• Three advanced degrees in Business
• Agriculture Economics, Sociology, Floriculture,
  and Mathematics

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How Are Audits Selected?
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Audit Selection

• Auditable Units
• Risk Factors
• Rankings and Selections
• Annual Audit Plan

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Typical Auditable Units

• Academic Colleges

• Business Functions

• Information Technology

• Human Resources

• Auxiliary Enterprises

• Student Financial Aid

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Audit Selection

• Auditable Units
• Risk Factors
• Rankings and Selections
• Annual Audit Plan

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Risk Factors(High, Medium, or Low)

• Funding Source
• Prior Audit Results
• Complexity
• Joint Appointments
• Change In Mission and/or Management
• Management Expressed Concern

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Audit Selection

• Auditable Units
• Risk Factors
• Rankings and Selections
• Annual Audit Plan

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Audit Selection

• Auditable Units
• Risk Factors
• Rankings and Selections
• Annual Audit Plan

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Annual Audit Plan

• List of Proposed Audits is Provided to CEOs for
  feedback
• Committee on Audit Provides Feedback
• Audit Plan Approved by the BOR
• http//sago.tamu.edu/iaudit/

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What Governs How Auditors Conduct Their Work?
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Texas Internal Auditing Act(Government Code 2102)

• Every State Agency must have a program of
  internal auditing
• Internal Audit must answer directly to the Board
• Requires annual audit plan
• Annual summarized report to the Governors Office
• Distribution of individual audit reports
• Adherence to industry and government auditing
  standards

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Auditing Standards Guidelines

• The Institute of Internal Auditors Standards for
  the Professional Practice of Internal Auditing
• United States General Accounting Office
  Government Auditing Standards
• System Policy Regulation Manual
• University Rules Standard Administrative
  Procedures
• Committee of Sponsoring Organizations (COSO) of
  the Treadway Commission Internal Control
  Integrated Framework

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Planning and Fieldwork

• Entrance Conference
• Risk Assessment
• Audit Program
• End of Planning Meeting
• Complete Audit Program

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Internal Audit Risk Assessment Model

• Environmental Risk
• Policy Management Risk
• Performance Management Risk
• Information Management Risk
• Resource Management Risk

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Ongoing Communication with Management

• Email Notification
• Advance Agendas
• Status Meetings
• Continuous Dialogue
• End of Fieldwork Meeting
• Exit Conference

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Reporting Process

• Disposition of minor observations.
• An ECD (Exit Conference Draft) containing all
  significant observations is issued for review by
  the client. (5-10 working day turnaround)
• Changes are made to the ECD, and a Draft Report
  is prepared.
• The Draft Report is sent out for official
  management responses to the observations. (30
  calendar day turnaround)
• Final Reports, including management responses,
  are issued on a quarterly basis to the Board of
  Regents.

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2003 Audit Plan

• College of Liberal Arts
• College of Science
• College of Architecture
• Physical Plant Operations-Telecommunications
• Financial Processes of the Student Health Center
• NCAA Rules Compliance Program
• ARP/ATP Awards
• TechCom, Inc.
• IRBs Compliance with Federal Regulations
• Contract Administration
• Unannounced Cash Counts
• Follow-up Audits

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Common Themes From Recent Audits

• Information Data Security
• Contract Procurement Compliance
• Grant Compliance
• Cash Handling
• Equipment Management
• Human Resource Issues
• Segregation of Duties

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How to Contact SIAD

• Phone [phone]
• Fax [phone]
• Web http//sago.tamu.edu/iaudit/
• Email
• Charlie Hrncir chrncir_at_siad.tamu.edu
• Bob Cates bcates_at_siad.tamu.edu
• Amanda Dotson adotson_at_siad.tamu.edu
• David Maggard dmaggard_at_siad.tamu.edu
• Sandy Ordner sordner_at_siad.tamu.edu