Internal auditing is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance.
Internal audit serves agency administrators and the governing board by furnishing independent analyses, appraisals, and recommendations about the adequacy and effectiveness of TSBVI's systems of internal control and the quality of performance in carrying out assigned responsibilities.
Texas Government Code 2102.002
The internal audit department is established by the board of trustees, and its responsibilities are defined by the board. The board of trustees shall appoint a Director of Internal Auditing who shall report functionally to the board of trustees on internal auditing matters and administratively to the School superintendent. The board of trustees may remove the Director of Internal Auditing.
The board of trustees shall periodically review the resources dedicated to the internal audit program and determine if adequate resources exist to ensure that risks identified in the annual risk assessment are adequately covered within a reasonable time frame.
Texas Government Code 2102.006
The board of trustees grants to the Director of Internal Auditing authorization for full and complete access to any of the school's records (either manual or electronic), physical properties, and personnel relevant to a review. The Director of Internal Auditing shall handle documents and information during a periodic review in the same prudent manner as by those employees normally accountable for them.
The Director of Internal Auditing shall have no direct responsibility or any authority over any of the activities or operations that he/she reviews. He/she shall not develop and install procedures, prepare records, or engage in activities which would normally be reviewed by internal auditors.
The Director of Internal Auditing may include in the written report of audit findings and opinions given to operating management for review and implementation recommendations on standards of internal control to apply to a specific activity.
"Assurance services" means an examination of evidence for the purpose of providing an independent assessment of risk management, control, or governance processes. Assurance services include the following types of activities.
Texas Government Code 2102.006
"Consulting services" means advisory and related service activities, the nature and scope of which are agreed upon with management and/or the board and are intended to add value and improve an organization's operations. Consulting services include counsel, advice, facilitation, and training.
Texas Government Code 2102.006
A written report will be prepared and issued by the director of internal auditing following the conclusion of each audit and will be distributed as appropriate. A copy of the full report will be forwarded to the members of the board.
It is expected that actions on recommendations be reported back on a timely basis with a copy to those included on the distribution list. This response will indicate what actions were taken in regard to the specific findings and recommendations in the internal audit report. If appropriate, a timetable for the anticipated completion of these actions will be included.
The internal audit program will comply with the Texas Internal Audit Act, generally accepted governmental auditing standards, and the Professional Practices Framework promulgated by the Institute of Internal Auditors which includes the Standards for the Professional Practice of Internal Auditing and the Institute of Internal Auditors Code of Ethics.
Texas Government Code 2102.011
ADOPTED: 5/30/91
AMENDED: 11/15/96, 9/22/00, 11/21/03
REVIEWED: 9/24/93
CFCA - 2 of 2