The Internal Audit Director, in consultation with the President and the Vice President for Administration & Finance, shall submit to the President for approval an audit plan by June 15 of each year.
At least annually, the Internal Audit Director shall submit to the President a report on the status of completion of the audits and activities in the audit plan.
Submission of Audits
A departmental audit, authorized by the audit plan, is initiated by the Internal Auditor by notifying the appropriate Executive Officer and departmental personnel that an audit will be performed. The Internal Auditor will advise the appropriate Executive Officer and affected administrator of the intended scope of the audit. The appropriate Executive Officer and affected administrator may comment on the proposed audit program and suggest modifications. The Internal Auditor shall retain sole responsibility for assuring that the audit conforms to the audit plan and professional standard of auditing.
Copies of the draft audit report will be submitted to the affected administrator, appropriate Executive Officer, and the Vice President for Administration & Finance. The Internal Auditor will convene a meeting of those affected for an exit conference. At that time, the report will be discussed and changes made if needed.
After the exit conference, the affected administrator must submit to the Internal Auditor responses to all recommendations in the audit report. The responses must state and briefly explain agreement or disagreement with each recommendation. (Exhibit 1) Also, for each accepted recommendation, the administrator must develop an Action Plan for implementation. The Action Plan must outline the steps to be taken to ensure compliance with the recommendation, responsible person(s), and implementation or completion date(s). (Exhibit 2) The response and Action Plan will be incorporated into the final report. If no response is received from the affected administrator within thirty (30) days, the appropriate Executive Officer will then be notified by the Internal Auditor. The Executive Officer will then be responsible for submitting the written response and Action Plan to the Internal Auditor within twenty (20) days.
The final report and audit program will be submitted to the President, with copies to the affected administrator, appropriate Executive Officer, and the Vice President for Administration & Finance. if the internal audit report contains a conclusion that there has been or may have been a violation of institutional or system policy or state or federal law, the President shall provide the report to the Commissioner of Higher Education.
Three (3) months after the Action Plan is finalized the Internal Auditor will request a written status report on the progress of the Action Plan from the responsible person(s). The Internal Auditor will submit a progress report to the President, appropriate Executive Officer, Vice President for Administration & Finance and the affected administrator.
Six (6) months after the Action Plan is finalized the Internal Auditor will perform a compliance review of the Action Plan. The Internal Auditor will report compliance with the Action Plan to the President, appropriate Executive Officer, Vice President for Administration & Finance, and affected administrator. Any noncompliance with the Action Plan will be reported first to the appropriate Executive Officer. The Executive Officer is responsible for providing an explanation for the noncompliance to the Internal Auditor. If appropriate, the affected administrator or Executive Officer will submit a revised Action Plan to the Internal Auditor within fifteen (15) working days. The Revised Action Plan will then be submitted to the President and compliance audits of the Revised Action Plan will be performed as appropriate.
If appropriate, the President will submit the Action Plan compliance report to the Commissioner of Higher Education.
Cash Loss Audits
In the event of an actual or suspected cash shortage or loss, all entities of University of Montana campuses must immediately contact the designated office on their campus which shall notify the Internal Auditor. Based on the circumstances surrounding the loss-shortage, an investigation or audit may be performed and, if appropriate, the Internal Auditor will prepare a report on the incident. The report of the Internal Auditor shall be promptly submitted to the President, who shall provide a copy to the Commissioner of Higher Education if it contains a conclusion that there has been or may have been a violation of institutional or system policy or of state or federal law.
Routine audits of all University activites include but are not limited to Petty Cash/Change Funds, Procard, Telephone usage, Time and Effort Activity Reporting, etc.
Routine audits may be conducted without prior notice.
The Internal Auditor will conduct routine audits as needed.
Special Auditing Services
An organization may request a special audit of financial or management activities by submitting a request to the Internal Auditor. The Internal Auditor shall perform the audit only upon Presidential approval.
In the event that an external auditor/representative contacts a University organization prior to contacting the Internal Auditor, the affected administrator is responsible for notifying the Internal Auditor. External Auditor Information
The Internal Auditor is responsible for drafting and/or reviewing all University audit responses that result from external audits.
The President will be repsonsible for signing and releasing all audit responses to external agencies.