2220

INTERNAL AUDIT DEPARTMENT

2220

It is the policy of this Board to establish and support an internal audit department as an independent appraisal function to examine and evaluate school system activities as a service to the administration and the board of education.  The internal audit department reports administratively to the superintendent and functionally to the chair and finance committee chair of the board of education.  In carrying out their duties and responsibilities, under the direction of the internal audit director, members of the internal audit department will have full, free, and unrestricted access to all system activities, records, property, and personnel. 

The primary objective of the internal audit department is to assist members of the administration and the board in the effective discharge of their responsibilities.  To this end, internal auditing will furnish them with analysis, recommendations, counsel, and information concerning the activities reviewed. 

The missions of the internal audit department are as follows:

 2220.1 

Review departments, functional areas, and other activities within the school system at appropriate intervals to determine whether they are effectively carrying out their functions of planning, organizing, directing, and controlling in accordance with management instructions, policies and procedures, and in a manner that is consonant with both school system objectives and high standards of administrative practice.

2220.2 

Determine the adequacy and effectiveness of the school system's system of internal accounting and operating controls.

2220.3 

Review the reliability and integrity of financial information and the means used to identify measure, classify, and report such information.

2220.4 

Review the established systems to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on operations and reports, and determine whether the organization is in compliance.  Suggest policy changes where required.

2220.5 

Review the means of safeguarding assets and, as appropriate, verify the existence of such assets.

2220.6 

Appraise the economy and efficiency, with which resources are employed, identify opportunities to improve operating performance, and recommend solutions to problems where appropriate.

2220.7 

Review operations and programs (on a selected basis) to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.

2220.8 

Coordinate audit efforts with those of the school system's public accountants.

2220.8.A

Participate in the planning, design, development, implementation, and operation of major computer-based systems to determine whether: (a) adequate controls are incorporated into the systems; (b) thorough system testing is performed at appropriate stages; (c) system documentation is complete and accurate; and (d) the needs of the user organization are met.  Conduct periodic audits of computer service centers and make post-installation evaluations of major data processing systems to determine whether these systems meet their intended purposes and objectives.

2220.9 

Review compliance with the school system's guidelines for ethical business conduct and see that the highest standards of personal and school system performance are met.

2220.10 

Submit annual audit plans, which are based on a risk assessment, to the superintendent and the board chair and board finance committee chair for their review and approval.

2220.11 

Report at least quarterly to the board chair and board finance committee chair of the board and senior management on whether:

A.    Appropriate action has been taken on significant audit findings.

B.   Audit activities have been directed toward the highest exposures to risk and toward increasing efficiency, economy, and effectiveness of operations.

C.   Internal and external audits are coordinated so as to avoid duplications. 

D.   Internal audit plans are adequate. 

E.   There is any unwarranted restriction on the staffing and authority of the internal audit department or on access by internal auditors to all school system activities, records, property, and personnel.

2220.12

Report to those members of management who should be informed or who should take corrective action, the results of audit examinations, the audit opinions formed, and the recommendations made.

2220.13

Evaluate any plans or actions taken to correct reported conditions for satisfactory disposition of audit findings. If the corrective action is considered unsatisfactory, hold further discussions to achieve acceptable disposition.

2220.14

Provide adequate follow-up to make sure that adequate corrective action is taken and that it is effective.  

2220.14.A

Evaluate the activities of the outside auditors as to their independence and compliance with generally accepted auditing standards.

The appropriate cabinet member or principal is responsible for seeing that corrective action on reported weaknesses is either planned or taken within thirty (30) days from receipt of a report disclosing those weaknesses.  The cabinet member or principal is also responsible for seeing that a written report of action planned or completed is sent to the superintendent.  If a plan for action is reported, a second report shall be made promptly upon completion of the plan.

Legal Reference: G.S. 115C-47

Adopted: October 21, 1985 

Revised: December 2, 1997

Revised: September 11, 2000

Revised: April 18, 2006