Audit Charter

I. POLICY - It is the policy of Slippery Rock University to maintain an internal audit function in order to provide assurance to university management that, within reasonable cost:

A. Financial statements and reports comply with University policy and generally accepted           accounting principles.

B. Internal accounting controls are adequate and effective in promoting efficiency and protecting the assets of the University.

C. Operational policies promoting the well being of the University are enforced.

D. The Internal Audit Department will maintain its independence and objectivity by having no direct responsibility for, nor authority over, any of the activities which it reviews.

II. OBJECTIVE - The objective in the internal audit function as fulfilled by the Internal Audit Department is to assist all members of management in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed.

III. RESPONSIBILITIES

A. The President is responsible for providing direction to the Internal Audit Department in carrying out university policy with regard to the university audit function.

B. The Internal Auditor, the senior officer within the Internal Audit Department, is responsible for the following:

1. Designing and implementing procedural guidelines to assure that:

a. Internal accounting and financial controls of reporting entities are adequate and efficient and can be relied upon to produce meaningful financial information of use to university management in discharging its responsibilities.

b. Internal controls of reporting entities adequately safeguard the assets of the University.

c. Financial statements of reporting entities are complete and accurate and comply with university policy and generally accepted accounting principles.

d. Reporting entities are in compliance with operational policies that promote the well being of the University.

e. Controls over the development, maintenance and operation of electronic data processing systems are sufficient to result in the processing of accurate and complete data.

2. Coordinating coverage with independent outside auditors and others as deemed necessary.

3. Designing an annual plan for audit coverage that fulfills the responsibility of the Internal Audit Department.

4. Performing supervisory functions and staff training and development activities.

5. Providing written reports of audit findings to such levels of management as may be necessary to effect remedial action.

6. Performing and reporting on special reviews as may be required by the President of the University.

7. Discharging the above responsibilities in a manner that is consistent with the Code of Ethics of the Association of College and University Auditors.

IV. AUTHORITY

A. In performing its function, the Internal Audit Department has no direct responsibility for, nor authority over, any of the activities which it reviews. Therefore, the internal audit review and appraisal process does not relieve other persons in the organization of the responsibilities assigned to them.

B. The manager of each operating element, that is each academic department and administrative unit, is responsible for:

1. Providing the Internal Audit Department sufficient access to records, documents, personnel and facilities to enable the department to carry out its function.

2. Providing timely written responses to the Internal Audit Department indicating actions taken or planned regarding the recommendations set forth in the audit report.