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The District shall support an Internal Audit Department as an independent, objective assurance and consulting activity designed to add value and improve the District’s operations.  The primary objective of Internal Audit is to help the District accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.  To this end, Internal Audit will furnish the Board and management with analysis, recommendations, and information concerning areas reviewed.

The Internal Audit Department shall comply with generally accepted government auditing standards (GAGAS), the international standards for the professional practice of internal auditing, and the code of ethics promulgated by the Institute of Internal Auditors.

The scope of work of the Internal Audit department is to determine whether the District’s network of risk management, control and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:

• Risks are appropriately identified and managed.
• Significant financial, managerial, and operation information is accurate, reliable, and timely.
• Employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
• Resources are acquired economically, used efficiently, and adequately protected.
• Programs, plans, and objectives are achieved.
• Significant legislative or regulatory issues impacting the District are recognized and addressed appropriately.

The Internal Auditor should be independent of the activities audited.  Independence permits the auditor to render the impartial and unbiased judgments essential to the proper conduct of audits.  To provide for the highest level of independence and objectivity of the Internal Audit department, its personnel shall report to the Internal Auditor, who reports functionally to the Board, via an Audit Committee (Governance Committee), and administratively to the Superintendent or designee.

 The Audit Committee will meet no less than quarterly to conduct business relevant to the internal audit function, and will serve only in an advisory capacity, with no power to supervise or control public business.

The Internal Audit department shall function under policies established by the Board.  Individual Board members may contact the Internal Auditor with suggestion of audit focus areas, but shall have no individual authority to direct such audits.  Audit selection shall be based on the Internal Auditor’s professional judgment augmented by the direction of the Audit Committee. 

By the Internal Auditor reporting “functionally” to the Board, the Board’s responsibilities will include: 

1. Annually reviewing and approving the Internal Audit Charter
2. Approving internal audit plans.
3. Communicating with the Internal Auditor concerning internal audit activities.
4. Evaluate the Internal Auditor’s performance.
5. Making decisions regarding the appointment or removal of the Internal Auditor.

By the Internal Auditor reporting “administratively” to the Superintendent or designee, the Superintendent’s /designee’s responsibilities will include providing: 

1. Budget, accounting, procurement, and other necessary support.
2. Human resource administration, including support in hiring personnel and providing compensation.
3. Adequate work space, furniture, and equipment.
4. Administration of the District’s policies and procedures, to include enforcement of time and attendance, travel, and purchasing requirements.

The Internal Auditor and staff of the Internal Audit Department have responsibility to:  

1. Develop a flexible annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the Audit Committee for review and approval as well as periodic updates.
2. Implement the annual audit plan as approved, including as appropriate, any special tasks or projects requested by management and the Audit Committee.
3. Maintain a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of the Charter.
4. Issue periodic reports to the Audit Committee and management, summarizing results of the audit activities.
5. Assist in the investigation of significant suspected fraudulent activities within the District and notify management and the Audit Committee of the results.

As an independent appraisal function, the Internal Audit department shall examine and evaluate any activity of the District.  The Internal Auditor and staff of the Internal Audit department are authorized to: 

• Have unrestricted access to all functions, records, property, and personnel.
• Set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.
• Obtain the necessary assistance of personnel in units of the District where they perform audits, as well as other specialized services from within or outside the District.

 The Internal Auditor and staff of the Internal Audit department are not authorized to: 

• Initiate or approve accounting transactions external to the Internal Auditing department.
• Direct the activities of any District employee not employed by the Internal Auditing department, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the Internal Auditors.

Internal Audit is a Central Administrative unit of the school district with offices located at the Administrative Building.  Internal Audit reports administratively to the Superintendent or designee and functionally to the Board of Trustees through the Audit Committee. Internal Audit’s coverage and service extends to all school district campuses and departments.

The auditor should be independent of the activities audited.  Independence permits the auditor to render the impartial and unbiased judgments essential to the proper conduct of audits.  To document the auditor’s independence an Independence Statement should be signed at the beginning of each audit and included in the work papers.

The scope of internal auditing encompasses the examination and evaluation of the adequacy and effectiveness of the school district’s internal control.  Internal Audit is a control which functions by examining and evaluating the adequacy and effectiveness of other controls throughout the school district for administrators, the Board of Trustees, and external auditors.

The primary objectives of Internal Audit are to ensure:

• The reliability and integrity of information.
• Compliance with policies, plans, procedures, laws, regulations, and contracts.
• The safeguarding of assets.
• The economical and efficient use of resources.
• The accomplishment of established objectives and goals for operations or programs.