Office of Audit Services

Audit Charter

Office of Audit Services Mission (Purpose)

The Office of Audit Services is an independent and objective assurance and consulting activity within the University of Vermont (UVM) that provides the Board of Trustees and management with observations, recommendations and advice designed to add value and improve the effectiveness of the University's risk management, control, and governance processes.

The Office of Audit Services exists to strengthen the University's ability to create, protect, and sustain value by providing the Board of Trustees Audit Committee and management with independent, risk-based, and objective assurance, advice, insight, foresight, and investigative services. Acting on behalf of the Board of Trustees, the Audit Committee grants the Office its mandate, and the Office’s authority derives from its direct functional reporting relationship to the Audit Committee, including unrestricted access to the Committee and its Chair. Through its work, internal auditing enhances UVM's achievement of its objectives; strengthens governance, risk management, and control processes; improves decision-making and oversight; enhances reputation and credibility with stakeholders; and supports UVM’s ability to serve the public interest.

Internal Audit Function

The chief internal auditor is specifically authorized and directed to:

  • Provide a program of financial, operational, information systems, compliance, and investigative audits (i.e., stemming from fraud or dishonest conduct);
  • Have full, free, timely, unlimited, and unrestricted access to all UVM functions, activities, entities, and any associated data, files, records, information systems, property, and personnel, contractors, and other resources relevant to its responsibilities, subject to appropriate requirements for confidentiality, privacy, information security, and record safeguarding. Such access is granted under the authority of the Audit Committee and may not be restricted by management;
  • Report any attempt to  restrict or materially delay such access (specified above) to the Chair of the Audit Committee;
  • Allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish the audit objectives;
  • Obtain the necessary assistance of personnel in units of UVM where they perform audits, as well as other specialized services from within or outside UVM;
  • Coordinate all audit activity at UVM to assure an efficient audit coverage that remains responsive to the University's needs;
  • Discuss with senior management any unit’s acceptance of risk the chief auditor believes is not appropriately justified and exposes the University to an unacceptable level of risk. If unresolved, the chief internal auditor shall escalate the matter to the Audit Committee.

The chief internal auditor is not authorized to:

  • Perform any operational duties for UVM;
  • Initiate or approve any accounting transactions external to internal audit;
  • Direct activities of any UVM employee not employed by internal audit, except to the extent such employees have been appropriately assigned to auditing teams or to otherwise assist the chief internal auditor.

Internal Audit Operations

The chief internal auditor is responsible for:

  • Maintaining a professional audit staff with sufficient knowledge, skills, and experience, and professional certifications to meet the requirements of this charter;
  • Developing an annual risk-based audit plan that incorporates collaboration and consultation with the Board of Trustees, UVM's independent auditors, and management;
  • Proposing an annual audit budget that is adequate to perform the scope of his or her responsibilities and to accomplish the annual risk-based audit plan;
  • Developing and maintaining an internal audit strategy aligned with University priorities;
  • Establishing and maintaining a Quality Assurance and Improvement Program (QAIP).

Audit Committee Function

The chief internal auditor reports functionally to and is accountable to the Audit Committee of the Board of Trustees. 

The Audit Committee has full authority and oversight of the internal audit function including, in close consultation with the president, appointment decisions, performance evaluations, salary setting and employment termination of the chief internal auditor. 

Administrative oversight regarding certain specific operational activities of the internal audit function has been delegated by the Audit Committee to the President. 

The Audit Committee is responsible for reviewing the Internal Audit Charter, the risk-based audit plan, and  the adequacy of resources necessary to execute the plan.

The Audit Committee oversees the independence, objectivity, effectiveness, and performance of the chief internal auditor and internal audit activity.

The Audit Committee reviews the results of the Quality Assurance and Improvement Program, including external quality assessments.

Independence and Objectivity

The internal audit activity will remain free from interference in determining the scope of internal auditing, performing work, and communicating results.

The chief internal auditor will confirm to the Audit Committee, at least annually, the organizational independence of the internal audit activity and disclose any impairments to independence or objectivity.

The chief internal auditor shall disclose to the Audit Committee any significant non-audit roles or responsibilities that may affect, or appear to affect the independence or objectivity of the internal audit function. Appropriate safeguards shall be established to maintain the independence and objectivity of the internal audit function and to address any actual, potential, or perceived impairments

Reporting

The Office communicates to management or operating personnel in the form of written reports, consultation, or advice. Written reports include observations, recommendations for improvement, and management's action plans to manage identified risks and to ensure that objectives are achieved. The Office also monitors, evaluates, and verifies (if appropriate) management's responses to audit observations and recommendations. Audit Services reports regularly on the status and results of the annual audit plan and sufficiency of office resources to the Audit Committee.

Professional Standards and Ethics

The chief internal auditor and staff will conform with the Global Internal Audit Standards issued by The Institute of Internal Auditors and will adhere to The IIA Code of Ethics.

Quality Assurance and Improvement Program

The internal audit activity will maintain a Quality Assurance and Improvement Program (QAIP) that meets the requirements of The Institute of Internal Auditors’ International Professional Practices Framework, including the Global Internal Audit Standards and applicable Topical Requirements. The QAIP includes ongoing monitoring, periodic internal assessments, and external assessments conducted at least once every five years. Results of the program will be communicated to the Audit Committee.