Audit Charter

The authority and responsibilities of the Florida Agricultural and Mechanical University’s
(FAMU) Division of Audit (DoA/Division) are defined in this charter.

DoA is led by the Vice President for Audit who serves as the University’s Chief Audit
Executive\Inspector General and the Director of Audit.

The Division is committed to enhancing FAMU’s ability to serve the public interest and its reputation and credibility with its stakeholders. DoA enhances and protects
organizational value by providing risk-based and objective audits and consulting engagements; and investigating instances of fraud, waste, and abuse as follows:

• Audit: Provides independent, objective audit (assurance) and consulting (advisory)
  activities designed to add value and improve university operations. The Division helps
  the university accomplish its objectives by bringing a systematic, disciplined approach to
  evaluate and improve the effectiveness of risk management, control, and governance
  processes.
• Investigations: Investigates allegations of fraud, waste, and abuse. Additionally, the
  Inspector General, reviews statutory whistle-blower information, designates
  whistleblowers, and coordinate all activities of the university as required by the Florida
  Whistle-blower’s Act.

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DoA provides insight on the mitigation of strategic, performance, and business risk to assist the Board of Trustees (BOT) and University management in the effective discharge of their responsibilities as they relate to the University policies, processes, programs, information
systems, internal controls, and management reporting. DoA is a point of coordination of and responsibility for activities that promote accountability, integrity, and efficiency in university operations.

 

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DoA’s mission is to enhance and protect the value of FAMU and its stakeholders by
providing excellence in risk-based and objective assurance, advice, and insight through the
promotion of accountability, integrity, and efficiency.

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Audit and consulting activities will conform to the International Professional Practices Framework published by the Institute of Internal Auditors, Inc. and/or the Information Systems Auditing Standards published by ISACA. DoA shall uphold the principles of integrity, objectivity, confidentiality, and competency as defined in the Institute of lnternal Auditors' Code of Ethics. DoA is to utilize the Committee of Sponsoring Organizations (COSO) as the model for evaluating the adequacy of internal controls. Additionally, the Division will adhere to the University's regulations, the Division's standard operating procedures manual, and Florida Board of Governors regulations and standards.

Investigation activities will conform to standards found in the Principles and Standards for Offices of Inspector General published by the Association of Inspectors General, and professional standards issued for the State University System of Florida entitled Standards for Complaint Handling and Investigations for the State University System of Florida.

The Chief Audit Executive will report periodically to the BOT and senior management regarding the internal audit function’s conformance with these standards.

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DoA provides audit and investigative services to all entities of FAMU, including schools,
colleges, administrative departments, auxiliary enterprises, and direct support organizations.
Accordingly, the Division is authorized to:

• Have timely, unlimited, and unrestricted access to all data, books, records, files, property,
  information systems, and personnel of FAMU as necessary to carry out the Division’s
  duties and responsibilities;
• Allocate resources, establish schedules, select subjects, determine scopes of work, and
  apply the techniques required to accomplish objectives;
• Obtain the essential assistance and cooperation of personnel in areas of the University
  where audits and investigations are performed, as well as other specialized services from
  within or outside the University; and
• Have free and unrestricted access to the BOT.

The Vice President of the Division of Audit serves as the University’s Chief Audit Executive, as
described in the International Standards for the Professional Practice of Internal Auditing, and
as Inspector General as authorized in Section 112.3189(1), Florida Statutes. The Chief Audit
Executive shall notify the chair of the BOT’s audit committee or the President, as appropriate, of any unresolved restriction or barrier imposed by any individual on the scope of an inquiry, or the failure to provide access to necessary information or people for the purposes of such inquiry. The Chief Audit Executive shall work with the BOT and university management to remedy scope or access limitations. If the university is not able to remedy such limitations, the Chief Audit Executive shall timely notify the Board of Governors, through the Office of Inspector General and Director of Compliance (OIGC), of any such restriction, barrier, or limitation.

Circumstances may arise that necessitate a review or amendment of the Division’s charter. Such circumstances include, but are not limited to:

• Significant changes in internal audit standards.
• Major acquisitions or reorganizations within the university.
• Changes in the university’s risk profile, objectives, or regulatory environment.
• The appointment of a new Chief Audit Executive, Board of Trustees members, or senior
  management.

In such cases, the Chief Audit Executive, in consultation with the BOT and senior management, will discuss and document any required changes to the charter to ensure it continues to reflect the needs and objectives of the university.

Board Oversight: The BOT will actively participate in discussions with the Chief Audit
Executive and senior management to ensure that the Division has the necessary authority,
resources, and independence to fulfill its duties effectively. The BOT will review and approve
the internal audit charter periodically to ensure that it remains aligned with the university’s
strategic objectives and risk profile. The BOT will also ensure that the Chief Audit Executive has direct and unrestricted access to the BOT, including the ability to meet privately with the BOT without senior management present.

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The Chief Audit Executive reports functionally to the Chair of the BOT and to the Chair of the
BOT’s Audit, Risk and Compliance Committee, and therefore communicates and interacts
directly with the BOT, including at BOT meetings and between BOT meetings as appropriate.
The Chief Audit Executive reports administratively to the President of the University.

The BOT will:

• Approve the charter of the Division;
• Approve the risk-based internal audit plan;
• Receive communications from the Chief Audit Executive on the internal audit activity’s
  performance relative to its plan and other matters;
• Provide input to senior management to support the performance evaluation, appointment, removal, and annual compensation and salary adjustment of the Chief Audit Executive; and
• Make appropriate inquiries of management and the Chief Audit Executive to determine
  whether there is inappropriate scope or resource limitations.

The Chief Audit Executive shall report directly to the Chair of the BOT and Chair of the BOT’s
Audit, Risk, and Compliance Committee any allegations about the University President. Any
allegations related to the Chief Audit Executive shall be reported to the University President and Chair of the BOT’s Audit, Risk, and Compliance Committee. Any allegations against BOT members shall be reported to the Board of Governors. These allegations are not to be handled internally and are not to be investigated by the Division. 

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The Chief Audit Executive will have the authority to disclose to the BOT any instances of
interference encountered during the execution of internal audit activities. Such disclosures will
include the nature of the interference, its impact on the internal audit function's effectiveness, and any actions taken to mitigate its effects. The BOT will support the Chief Audit Executive in
maintaining the independence and objectivity of the internal audit function, ensuring that the
function can operate without undue influence from management.

The Division will remain free from interference by any element in the University, including
matters of audit and investigation selection, scope, procedures, frequency, timing, or report
content to permit maintenance of a necessary independent and objective mental attitude.
Division staff must have no personal and external impairments to their independence, and have no direct responsibility or authority over any of the activities audited. Accordingly, they will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair their judgment.

Division staff will exhibit the highest level of professional objectivity in gathering, evaluating,
and communicating information about the activity or process being examined. Division staff
will make a balanced assessment of all the relevant circumstances and not be unduly influenced by their own interests or by others in forming judgments.

The Chief Audit Executive will confirm to the BOT, at least annually, the organizational
independence of the internal audit activity.

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Responsibility 

The scope of internal audit encompasses, but is not limited to, providing assurance to
management by examining and evaluating of the adequacy and effectiveness of the university’s governance, risk management, and internal controls as well as the quality of performance in carrying out assigned responsibilities to achieve the University’s stated goals and objectives.

• The Chief Audit Executive is responsible for fulfillment of the following activities:
  Provide direction for, supervise, and coordinate audits, investigations, and risk
  management activities which promote economy, efficiency, and effectiveness in the
  administration of university programs and operations including, but not limited to,
  auxiliary facilities and services, direct support organizations, and other component units;
• Conduct, supervise, or coordinate activities for the purpose of preventing and detecting fraud and abuse within university programs and operations including, but not limited to, auxiliary facilities and services, direct support organizations, and other component units;
• Maintaining a professional audit staff with sufficient knowledge, skills, abilities,
  experience, and professional certifications;
• Perform consulting and advisory services related to governance, risk management and control as appropriate for the University. Such services include management requests, and participation in institutional committees;
• Review statutory whistle-blower information and coordinate all activities of the
  university as required by the Florida Whistle-blower’s Act;
• Address significant and credible allegations relating to waste, fraud, or financial
  mismanagement as provided in Board of Governors Regulation 4.001;
• Keep the President and BOT informed concerning significant and credible allegations
  and known occurrences of waste, fraud, mismanagement, abuses, and deficiencies
  relating to university programs and operations; recommend corrective actions; and report on the progress made in implementing corrective actions;
• Promote, in collaboration with other appropriate university officials, effective
  coordination between the university and the Florida Auditor General, federal auditors,
  accrediting bodies, and other governmental or oversight bodies. Consider the scope of their work for the purpose of providing optimal audit coverage to the University at a reasonable overall cost;
• Review and make recommendations, as appropriate, concerning policies and regulations related to the university’s programs and operations including, but not limited to, auxiliary facilities and services, direct support organizations, and other component units;
• Evaluate the systems established to ensure compliance with policies, plans, procedures, laws and regulations which could have a significant impact on the University;
• Evaluate the reliability and integrity of information and the means used to identify,
  measure, classify, and report such information;
• Evaluate risk exposures relating to achievement of the university’s strategic objectives;
• Evaluating the means of safeguarding assets and, as appropriate, verifying the existence of such assets;
• Communicate to the president and the board of trustees, at least annually, the office’s
  plans and resource requirements, including significant changes, and the impact of
  resource limitations;
• Provide training and outreach, to the extent practicable, designed to promote
  accountability and address topics such as fraud awareness, risk management, controls, and other related subject matter;
• Coordinate or request audit, financial- and fraud-related compliance, controls, and
  investigative information or assistance as may be necessary from any university, federal, state, or local government entity;
• Develop and maintain a quality assurance and improvement program for the office of
  Chief Audit Executive. This program must include an external assessment conducted at least once every five (5) years. The external assessment report and any related
  improvement plans shall be presented to the BOT, with a copy provided to the Board of Governors;
• Establish policies that articulate the steps for reporting and escalating matters of alleged misconduct, including criminal conduct, when there are reasonable grounds to believe such conduct has occurred;
• Inform the BOT when contracting for specific instances of audit or investigative assistance; and
• Report routinely to the BOT on matters including significant risk exposures, control issues, fraud risks, governance issues, and other matters requested by the President and the BOT.

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Available Upon Request

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