INTERNAL AUDIT CHARTER
internal audit function is established by the Board of Trustees, and its
responsibilities are defined by the Audit Committee of the Board of Trustees. The District’s internal auditor will report
administratively to the Chancellor with an additional direct reporting line to
the Audit Committee of the Board of Trustees.
Authorization and Responsibilities
It shall be the duty of the internal auditor
- Provide additional assurance that City College departments and employees, responsible for
accounting and financial management activities, comply with statutory
requirements and accounting standards;
- Conduct internal audits of all fiscal
transactions of City College including, but not limited to, the examination
and analysis of fiscal procedures and examination, checking, and
verification of accounts and expenditures;
- Provide other analyses of financial and
operating data as directed by the Board of Trustees; and
- Other such duties as the Trustees may by resolution
The internal auditor shall conduct
internal audits in accordance with a schedule approved by the Audit Committee
of the Board of Trustees and may conduct other unscheduled audits from time to
time with the Audit Committee’s approval. The results of these audits shall be reported
in writing to the Board of Trustees, Audit Committee, and the Chancellor.
C. In addition to the audits conducted by the internal
auditor, the Board of Trustees shall authorize a contract with an independent
certified public accounting firm to conduct an annual independent financial
audit, the results of which shall be delivered in writing to the Board of
The office of the internal auditor shall
be under the direction of the San Francisco Community College District’s (the
District) internal auditor who shall be accountable to the Audit Committee of
the Board of Trustees. The internal
- Be knowledgeable in operational and financial
auditing, public administration, and public financial and fiscal
- Be a licensed certified public accountant (CPA)
and/or certified internal auditor (CIA); and
- Recommend the organizational structure
appropriate to carrying out the responsibilities and functions of this
The mission of the office of the internal
auditor is to promote honest, efficient, effective, and fully accountable City College operations. To
fulfill this mission, the office of the internal auditor may conduct audits and
examinations of any City College department, program, service or activity. The purpose of these audits and examinations
is to provide the Board of Trustees and the Chancellor with information and
evaluations regarding the effectiveness and efficiency with which City College resources are employed, the adequacy of the system
of internal controls, and compliance with City College policies and procedures and regulatory
- The internal auditor shall conduct operational
and financial audits and other audit work as requested by the Audit Committee.
This will include independently
determining and evaluating:
soundness, adequacy, and application of accounting, financial, and other
operating controls towards promoting effective control at a reasonable cost.
- The extent of compliance with applicable laws and regulations and with
established policies and procedures.
- The extent to which City College assets are accounted for and safeguarded from
losses of any kind.
- The sufficiency, validity and reliability of accounting and statistical data
developed within the organization.
- The economy, efficiency, and effectiveness of City College departments, programs, services, and activities.
In addition to the aforementioned
responsibilities, the internal auditor shall:
- Assist with the coordination of an annual external
financial audit for the City College with the independent certified public
accounting firm authorized by the Board of Trustees.
- Provide consulting services to City College operating departments as requested by the Audit
Committee or the Chancellor in their efforts to re-engineer their operating
practices and processes.
- Provide consulting services to the Board of
Trustees, as requested, regarding the accuracy and financial impact of
information provided to the Board of Trustees.
- Perform other auditing functions consistent
with the provisions of this section.
At the first Board meeting of each
fiscal year, the internal auditor shall submit an annual audit plan to the Audit
Committee for approval. The plan shall
identify the preliminary objectives of each audit to be performed, reflecting
the purpose of the engagement and a preliminary description of the areas which
may be addressed. The internal auditor
will review the plan and consult with the Chancellor prior to submitting it to
the audit committee for approval. The Board
of Trustees, Audit Committee, and/or the Chancellor shall identify areas where City College will benefit from operational and financial audits.
The internal auditor will review the
plan with and seek the advice of the City College’s General Counsel prior to submitting it to the Audit
Committee for approval. The internal
auditor will issue quarterly reports to the Audit Committee describing the
status and progress towards completing the audits. The annual audit plan may be amended during
the year with the approval of the Audit Committee or the Board of Trustees.
The internal auditor shall prepare a
written report of the results of each audit conducted and will be responsible
for retaining a copy as a permanent record. Each audit report shall include:
- A statement of audit objectives and a
description of the audit scope and methodology.
- A full discussion of audit findings and
- Recommendations for necessary or desirable
- A written response from the appropriate vice
chancellor in charge of the audited activity, except as described below.
Upon completion of the preliminary draft
of an audit report, and prior to submission of the report to the audit
committee, the internal auditor shall transmit a copy of the report to the Chancellor
and the City College’s General Counsel for review and comment, including legal advice
relating to disclosure of information contained in the report. A final draft of the audit report is then presented
to the appropriate vice chancellor in charge of the audited activity, and to
other appropriate officials as determined by the internal auditor.
- Within three weeks of receiving the final draft
report, the vice chancellor in charge of the audited activity will prepare
an official written response to the findings and recommendations contained
within the report and transmit the response to the internal auditor. The final report will be issued to the Audit
Committee and the Board of Trustees within three weeks of receipt of the
- The official written response will be included
verbatim in the audit report issued to the Audit Committee and the Board
of Trustees by the internal auditor.
- If a response is not received within the
established three weeks, as described above, the audit report will be
issued to the Audit Committee and the Chancellor without management
- The audit report may be placed on the agenda of
the Board of Trustees after the audit report is reviewed by the Audit
J. The internal auditor will prepare and issue an
annual report on the status of recommendations made in completed audits. The report will reflect the status as reported
by the department head or the highest official of the audited entity. The report will be issued to the Board of
Trustees in the first quarter of the fiscal year for review by the Audit
Committee. Further follow-up audits will
be conducted as determined and recommended by the internal auditor and approved
by the Audit Committee.
K. The internal auditor will have unrestricted
access to all sources of information, property, and personnel relevant to the
performance of a board-approved audit, unless prohibited by law. Documents and information will be handled with
the same prudence exercised by those normally accountable for them and
consistent with the standards established by the Institute of Internal Auditors. To the
extent possible, the internal auditor will accommodate an area's daily
operations in scheduling and conducting such audits.
Committee of the Board of Trustees Relations
The internal auditor is employed
by the San Francisco Community College District and reports administratively to
the Chancellor with an additional direct reporting line to the Audit Committee
of the Board of Trustees. The Audit
Committee approves the annual audit workplan, reviews audit report findings and
recommendations, and monitors the implementation of recommendations.