Texas A&M University Division of Student Affairs What To Expect From An Internal Audit May 2, 2005

1. Texas A&M University Division of Student Affairs What To Expect From An Internal Audit May 2, 2005

2. Internal Audit’s Responsibility • Develop an annual audit plan based upon a system-wide risk assessment process; • Conduct audits in support of the plan; • Investigate fraud or fraudulent actions; • Report results to the Board of Regents, the Chancellor, and the Chief Executive Officers; and • Coordinate audit efforts with external and state auditors

4. Audit Selection • Auditable Units

5. Typical Auditable Units • Academic Colleges • Business Functions • Information Technology • Human Resources • Auxiliary Enterprises • Student Financial Aid

6. Audit Selection • Auditable Units • Risk Factors

7. RiskFactorsAnalysis of Likelihood and Impact • Budget • Prior Audit Results • Complexity • Change In Mission and/or Management • Management Interest

8. Audit Selection • Auditable Units • Risk Factors • Rankings and Selections • Annual Audit Plan

9. Annual Audit Plan • List of Proposed Audits is Provided to CEOs for feedback • Committee on Audit Provides Feedback • Audit Plan Approved by the BOR • http://sago.tamu.edu/iaudit/

10. Auditing Guidelines • The Institute of Internal Auditors: Standards for the Professional Practice of Internal Auditing • United States General Accounting Office: Government Auditing Standards • Committee of Sponsoring Organizations of the Treadway Commission: Internal Control Integrated Framework • System Policy & Regulation Manual • University Rules & Standard Administrative Procedures

11. Audit Process

12. Audit Process • Entrance Conference • Risk Assessment • Audit Program • End of Planning Meeting • Complete Fieldwork • End of Fieldwork Meeting • Draft Report

13. Ongoing Communication with Management • Email Notification • Advance Agendas • Status Meetings • Continuous Dialogue • End of Fieldwork Meeting • Minimize Surprises

14. Audit Process • Entrance Conference • Risk Assessment • Audit Program • End of Planning Meeting • Complete Fieldwork • End of Fieldwork Meeting • Draft Report

15. Reporting Process • Disposition of minor observations. • An ECD (Exit Conference Draft) containing all significant observations is issued for review by the client. (5-10 working day turnaround) • Changes are made to the ECD, and a Draft Report is prepared. • The Draft Report is sent out for official management responses to the observations. (30 calendar day turnaround) • Final Reports, including management responses, are issued on a quarterly basis to the Board ofRegents.

16. Common Themes From Recent Audits • Information Data Security • Human Resource Issues • Cash Handling • Student Travel • Procurement Cards

18. HOW TO PREPAREFOR AN AUDIT • http://sago.tamu.edu/iaudit/ • Click on Presentations- Council of Senior Business Administrations Focus Session, April 21, 2004, Audits: How to Prepare and What to Expect. Presented by James Laird, Assistant Dean for Finance and Administration, College of Science • Click on Resources- Texas State Auditor’s Office: Assessing Risk in Key Accountability Control Systems. • Click on Electronic Reports – 1st Quarter Report FY 2005- TAMU Mays Business School 2nd Quarter Report FY 2005- TAES - Review of Revenue Management 1st Quarter Report FY 2004- TAMU- College of Science 2nd Quarter Report FY 2004- TAMU- Review of the President’s Office 3rd Quarter Report FY 2004- TAMU- International Program 3rd Quarter Report FY 2004- TAMU- Athletics Department 3rd Quarter Report FY 2004- TAMU- Review of Transportation 4th Quarter Report FY 2004- TAMU- Review of the Corps: Office of the Commandant

19. How to Contact SIAD • Phone: 979/458-7100 • Fax: 979/458-7111 • Web: http://sago.tamu.edu/iaudit/ • Email: • Cathy Smock cathy-smock@tamu.edu • Charlie Hrncir chrncir@tamu.edu