| Effective Date: |
July 20, 2012
|
|---|---|
| Last Revised Date: |
December 14, 2023
|
| Responsible Unit(s): | |
| Responsible Unit Email(s): | |
| Manual: | |
| Status: |
Active
|
Purpose and Summary
To provide guidance to University personnel whose areas are being audited, to ensure that external audit activities are appropriately coordinated and managed by University personnel, and responses to external audit findings or conclusions are properly implemented in a timely manner.
The University will undergo periodic examinations or audits of fiscal and administrative management to ensure that funds and resources are used and reported in accordance with the appropriate methods prescribed by law, generally accepted accounting principles, and Arizona Board of Regents’ and University rules and regulations. As such, audits are a means of determining whether the activities of operating units are safeguarding the assets of the University, operating efficiently, and overseeing operations in a manner that is consistent with public policy. The objectives of audits are beneficial; therefore, the policy of the University will ensure that administration of external audits will be conducted to achieve these purposes.
Scope
This policy applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.
This policy applies to all audits and reviews performed by external auditors for all University transactions. This includes external audits and reviews at the University level as well as at the college, department, unit, account, or transaction level.
Definitions
- Annual Comprehensive Financial Report (ACFR): A financial report prepared at the end of each fiscal year in accordance with generally accepted accounting principles (GAAP) and in conformance with standards of financial reporting as established by the Governmental Accounting Standards Board (GASB).
- Audit: An independent and objective appraisal to examine or review the fair presentation of financial statements, economy and efficiency of operations, effectiveness of achieving program results, compliance with laws and regulations and/or the detection of fraudulent activities. For purposes of this policy and procedure, audits include but are not limited to external: reviews, site visits, desk audits, and fraud investigations.
- Audit Liaison Official: The Vice President, Financial Services is the administrative officer responsible for all official contact with External Auditors.
- Audit Coordinator: The Vice President, Financial Services’ designee who acts on behalf of the Audit Liaison Official and is normally the intermediary contact for the routine management and functioning of external audit activities within the University.
- External Auditors: Any auditors or investigators that are not employees of the University. External Auditors include federal, state, local and other outside, independent auditors that audit various University activities and programs at University request, or as required by law, ABOR, grant sponsors, or other external entities.
- Internal Auditors: Employees of the University of Arizona Internal Audit Department who conduct independent and objective assurance and audit consulting services within the University.
- Single Audit: A required annual audit of the University as a recipient of Federal assistance under 2 CFR 200 Uniform Guidance. The Single Audit is an external audit that examines the University’s federal award transactions, student financial aid transactions, internal controls, and compliance with laws and regulations.
Policy
- The University will fully cooperate with and assist External and Internal Auditors whose responsibilities involve examination and confirmation of University transactions.
- To help ensure that external audit activity is appropriately coordinated, the Audit Coordinator must be informed of all external audit activity. The Audit Coordinator will ensure an understanding of the objectives and scope of the audit and assist the auditors in achieving legitimate objectives with the least impact on University operations. Notification of internal audits is not required.
- On a timely basis, the University will provide External Auditors with access to all records that are relevant to the audit, except those deemed by the University to be legally privileged or protected. Availability of records is subject to University record retention policies.
- The President of the University will promptly notify ABOR of any significant issues raised by Internal Auditors, state or federal auditors, or any other audit agency or authority.
- The University will prepare and provide an Annual Comprehensive Financial Report (ACFR) to the Arizona Board of Regents’ Audit and Risk Management Committee.
Compliance
The following is a general outline of the responsibilities of those involved in audits conducted under the scope of this policy and procedure. Due to the unique nature of each audit, the responsibilities listed below may not apply to all audits and some responsibilities may be delegated by the Audit Liaison Official and Audit Coordinator:
Audit Liaison Official
- Designate an Audit Coordinator.
- May attend entrance and exit conferences.
- Review draft audit reports prior to issuance by the external audit entity.
- Review and approve responses to audit reports prior to submission to the external audit entity.
- Advise appropriate members of executive management on the status of unresolved audit findings and progress.
Audit Coordinator
- Monitor all campus external audit activity.
- Notify University Internal Audit of all external audits.
- May attend entrance and exit conferences.
- Attend the final briefing on the draft audit report and review draft audit reports prior to issuance.
- Coordinate with Sponsored Projects Services (SPS) for audits of sponsored grants and contracts.
- Facilitate cooperation with External Auditors in the performance of their duties and to avoid duplication of effort.
- Review the response to audit reports prior to submission to the Audit Liaison Official.
- Coordinate the distribution of all audit reports.
- Monitor the implementation status of audit recommendations.
Department Head / Principal Investigator / Business Manager
- Notify the Audit Coordinator when an external agency wishes to commence an audit, review, site visit, desk audit, fraud investigation, or conduct field work on campus.
- For audits related to sponsored project accounts, if an auditor contacts you directly, refer them to SPS.
- Work with the Audit Coordinator and/or SPS for sponsored project related audits, on requests for specific information or to arrange interviews with employees.
- Forward all draft and final audit reports and responses to the Audit Coordinator or SPS for review.
- Implement agreed-upon audit recommendations.
All University Employees
- Be courteous, cooperative, and professional when dealing with the auditors.
- If you are unsure about how certain information may relate to the audit or have any questions pertaining to the audit, consult with the Audit Coordinator.
- At any time, if questions arise concerning the conduct of an auditor or if work appears beyond the defined scope of the audit, contact the Audit Coordinator for further instructions.
- Refrain from providing unrequested information.