Charter

Approved by the Binghamton University Audit Committee on June 4, 2019

This Charter identifies the purpose, authority, responsibilities, and reporting procedures of the Office of Internal Audit at Binghamton University.

Purpose

Internal Audit is an independent appraisal activity established within the organization to evaluate the effectiveness, efficiency, and application of accounting, financial reporting, operational, and other internal controls necessary to accomplish University objectives in compliance with established policies, procedures, regulatory requirements, and sound business practices. Internal Audit activities are conducted in compliance with the Standards for the Professional Practice of Internal Auditing promulgated by The Institute of Internal Auditors.

Authority

Internal Audit has a direct reporting relationship to the President of Binghamton University as well as to the Binghamton University Audit Committee, comprised of risk and financial managers from throughout the University, BU Research Foundation, and the BU Foundation. Internal Audit also has direct access to the State University of New York Office of the University Auditor and the Research Foundation Office of Internal Audit and Management Advisory Services. These reporting relationships ensure Internal Audit's independence, promote comprehensive audit coverage, and assure adequate consideration of audit recommendations.

Internal Audit personnel will be granted full and complete access to all institutional records (physical properties, electronic media, and employees) and the records of organizations associated with Binghamton University in the performance of audits and other related services. This includes, but is not limited to, the records of the following organizations: BU Foundation (including its affiliates), BU Research Foundation, Binghamton Auxiliary Services Corporation, Student Association, Graduate Student Association, and Alumni Association. This access requires the audit staff to maintain the highest levels of confidentiality and standards to safeguard information and institutional assets.

In conducting these activities, Internal Audit has neither direct responsibilities for, nor authority over, any of the operations or activities, which are subject to review or audit. Additionally, the Internal Audit shall not install systems or procedures, prepare records, or engage in any other operational capacity.

Responsibility

The responsibilities of Internal Audit encompass the examination and evaluation of the adequacy and effectiveness of the University's internal control structure to achieve the stated goals and objectives of Binghamton University. These responsibilities include:

  • Prepare and submit an annual audit plan to the University President and Audit Committee.
  • Develop and execute a comprehensive audit program for the evaluation of internal controls to include the following:
    • Review the reliability and integrity of financial and operating information; the means used to identify measure, classify, and report such information.
    • Review operations or programs to determine if results are consistent with established objectives and goals.
    • Evaluate compliance with University plans, policies, and procedures and with governmental or other regulatory agency laws or regulations.
    • Appraise the adequacy of internal controls established to safeguard Binghamton University assets.
  • Prepare and submit audit reports documenting the results of examinations, including findings and recommendations, to the administrator of the unit audited, and senior administrators as deemed necessary.
  • Monitor the implementation of audit recommendations.
  • Perform special reviews as requested by the University President, Audit Committee, or other Senior Administrators.
  • Perform reviews of the campus-affiliated organizations as required.
  • Perform reviews as a member of the fraud investigation team, compiling evidence and reporting on the audit findings.
  • Attend entrance and exit conferences for audits and other reviews performed by external audit groups, such as the SUNY Office of the University Auditor, the Research Foundation Office of Audit and Management Advisory Services, the Office of the State Comptroller, Public Accounting firms, and federal, state, and other regulatory audit agencies.
  • Notify the President, Chair of the Audit Committee, and Internal Control Officer of emerging critical issues.

Reporting Procedures

Following the conclusion of each audit, a preliminary audit report will be prepared and issued by the Campus Auditor to the Vice President and Director of the area audited. The Vice President and the Director will be required to respond to the preliminary report in writing to the Campus Auditor within 30 days of receipt of the report. These departmental responses will be incorporated in the final audit report. The final report will be forwarded to the University President, the Audit Committee, and the Vice President responsible for the area being audited. Management of the areas being audited is responsible for determining actions and implementing recommendations resulting from an Internal Audit review.