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University Auditor Charter

Approved by the Corporation on October 18, 1997

PURPOSE OF THE UNIVERSITY AUDITOR The overall responsibility of the University Auditor is to assist senior officers in ensuring that operations undertaken within the University are within the spirit of University policies, that they employ appropriate internal controls and generally accepted accounting principles, and that they are organized within related legal restrictions. Internal auditing is a service to the Brown Corporation and those charged with major leadership and administrative responsibilities for the University. The University Auditor directs this service, and is responsible for coordinating and planning auditing activities in conjunction with all University constituents to utilize the limited auditing resources efficiently.

STANDARDS AND GUIDELINES The Standards for the Professional Practice of Internal Auditing promulgated by the Institute of Internal Auditors and guidelines recommended by the Association of College and University Auditors will be used in formulating and executing the internal audit function. Competence demonstrated through appropriate professional certification and continuing education shall be required of the University Auditor.

INDEPENDENCE The University Auditor reports administratively to the Executive Vice President for Finance and Administration and is accountable to the Corporation through the Audit Committee, and to the President of the University. The University Auditor shall periodically meet with and report to the President and the Audit Committee. The University Auditor and his or her duly appointed associates are authorized to have free, full, and unrestricted access as necessary to all University activities, records, property, and personnel for the purpose of carrying out the responsibilities outlined herein.

SCOPE OF WORK All organizations directly or indirectly managed by Brown University will be subject to review by the University Auditor. The specific scope of work will be identified when the need for an audit is established, or when additional concerns develop during an audit. In general, the scope of work will fall into one or more of the following categories:

  1. Determine compliance with policies, plans, procedures, generally accepted accounting principles, and applicable laws and regulations.
    1. Appraise the adequacy and effectiveness of systems, both manual and automated, designed to ensure such compliance.
    2. Appraise the effectiveness and appropriateness of University policies, plans, and procedures in light of current conditions.
  2. Evaluate the safeguarding of assets and the systems and components of internal control.
  3. Appraise the economy and efficiency with which financial, physical, and human resources are employed to identify undesirable conditions such as duplication of effort, nonproductive work, underutilized facilities, over/understaffing, and procedures which are not cost justified.
  4. Ascertain whether financial and operating records and reports contain accurate, reliable, timely, complete, and useful information. Additionally, ascertain whether controls over the associated record keeping and reporting are adequate and effective.
  5. Appraise the effectiveness of the actual or planned use of resources.
    1. Ascertain whether results are consistent with established objectives and goals, and whether operations or programs are being carried out as planned.
    2. Provide assistance to task forces or managers who are developing objectives, goals, systems, and major revisions to systems by giving counsel on whether the underlying assumptions are appropriate; whether information is accurate, current, and relevant; and whether suitable controls have been incorporated into the operation or programs.

SPECIAL INVESTIGATIONS The University Auditor should be notified of all suspected or known fraudulent activities. The University Auditor has a responsibility to assist senior management in developing sufficient evidence to document suspected fraudulent activities. The University Auditor will communicate to senior management details or information relating to fraudulent activities discovered during planned audit activities. During special investigations, coordination and communication between the University Auditor and the Vice President and General Counsel, the Chief of Police and Security Services, and the Human Resources Director are imperative.