Internal Audit Division

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University Business Practices

• Internal Audit Division

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Topics To Be Covered

• WHO is Internal Audit?
• WHY are we here?
• WHAT do we do? WHAT do we not do?
• HOW do we select our internal audits?
• Issue trends and helpful information.
• WHERE are we located?
• Questions?

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WHO is Internal Audit?

• Internal to the University
• Independent in nature
• Team background certifications (CPA,CIA, CISA),
  various experience
• Biographies on website

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Organization Chart
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WHY are we here?

• Special Responsibility Constituent Institution
• Mandated by state law
• Session Law 2007-424, The NC Internal Audit Act
• Session Law 2007-520, State Governmental
  Accountability and Internal Control Act
• Risk management
• Internal controls
• Governance and compliance requirements
• Safeguarding assets physical, logical
• Promoting efficiencies and sharing best practices
• Goal
• Keep NCSU out of trouble!

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WHAT do we do?

• Operational, information technology, and
  investigative audits
• Proactive consulting
• Risk assessments
• Participation on committees and team projects
• Work with subject matter experts

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WHAT do we not do?

• Financial statement audits
• Make management decisions
• Establish requirements
• Develop or write policies
• Assume responsibility or ownership of processes
  and procedures
• Goal
• Maintain independence
• Avoid conflict of interest

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HOW do we select our internal audits?

• Responsible for the entire University
• Requests from units and/or management
• Regular risk assessment meetings
• Hotline reporting State Auditors and NCSU
• Result Annual Audit Plan
• Plan is a Living Document

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HOW do we perform our internal audits?

• Contact unit management
• Meet with other staff members
• Develop audit program
• Perform fieldwork (interviews, review data,
  verification)
• Discuss potential issues with managers
• Audit report including kudos and issues
• Follow-up on audit
• Goal
• Auditee constantly involved no surprises!

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Helpful Information Misuse of State Funds

• Resources
• NC G.S. 114-15.1
• REG07.40.2 http//www.ncsu.edu/policies/finance/pr
  operty/REG07.40.2.php
• Collaboration between Internal Audit, Legal
  Affairs, Campus Police, State Auditors, SBI
• Responsibility and how to report
• State Auditors Hotline [phone]-TIPS

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Helpful Information Issue Trends
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Other Helpful Information

• Liaison from Internal Audit
• Policies, Regulations, and Rules (PRRs)
• Training financials, human resources, contracts
  and grants (RAMP)
• IT Computer Training Unit, ITD/RMIS (OIT)
• UBO Meeting www.fis.ncsu.edu/financialsvcs/UBO_In
  formation/UBO_Home_Page.htm
• Personnel Connections
• www.fis.ncsu.edu/hr/pc/

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WHERE are we located?

• Peele Hall, Suite 317
• Website http//www.ncsu.edu/internal_audit/
• Directors phone and email
• 515-8862 cecile_hinson_at_ncsu.edu

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Wrap-up Internal Audit

• Questions ???
• If in doubt.call us!