The Internal Audit Department’s mission is to provide independent examination and analysis of the activities of the thirteen colleges and the system office. We also perform required audits of the recipients of Colorado Technical Act funds.
The objectives of the Internal Audit Department include assisting management and the Board of Directors in the effective discharge of their responsibilities by furnishing them with analysis, appraisals, recommendations, counsel, and information based on professional judgment and as a result of reviews and audits. Our aim is to act in partnership with the System office and college management, providing valuable services back to the college system.
The Director of Internal Audit reports functionally to the Audit Committee. The Audit Committee members are appointed from the Board of Directors by the Board Chairman. Current Audit Committee members are Committee Chair Terrance McWilliams, Catherine Shull and Garrison Ortiz.
CCCS Internal Audit Charter & Mission Statement
Audit Committee Procedure Charter and Mission Statement
July 1, 2007
Board Policy 2-10, Board Committee Structure Board Policy 7-01, Audit Committee Charter State Controller’s Office Fiscal Rule1-8
This policy applies System-wide.
Rule 1-8 of the State of Colorado Fiscal Rules requires the State Board for Community Colleges and Occupations Educations (the “Board”) to implement internal accounting and administrative controls, which reasonably assure financial transactions are accurate, reliable, and conform to State Fiscal Rules. The Board has charged the Colorado Community College System (the “System”) President with this responsibility. In fulfillment of that requirement, Board Policy 2-10 establishes the Audit Committee to assist the Board in fulfilling its fiduciary responsibilities System-wide. Fiduciary responsibilities include assessing risk and addressing matters including financial statement reporting, internal controls, compliance with applicable laws, regulations and Board policies, as well as System and College policies and procedures. The internal audit department is established to assist the Audit Committee in carrying out this responsibility.
The Department of Internal Audit is established within the Colorado Community College System to independently examine and evaluate the activities of the thirteen colleges, the system office and Colorado school districts that participate in the Colorado Vocational Act. The objectives of the Department of Internal Audit are to assist the Audit Committee and the college system in the effective discharge of their responsibilities by furnishing them with analysis, appraisals, recommendations, counsel, and information concerning the activities audited and to promote effective systems of fraud prevention, internal control and a culture of ethical conduct.
Role of Internal Audit Department:
The Department of Internal Audit is established by the Board. The Director of Internal Audit (“Director”) shall be appointed by and shall report functionally to the Audit Committee Chairman (“Committee Chair”) and administratively to the President of the Community College System.
The functional reporting responsibility requires that the Director provide information directly to and take direction from the Committee Chair and the Committee. This includes but is not limited to such items as department strategy, goals, and on going performance reporting. Communications should be of sufficient substance to allow the Committee to fulfill their responsibilities under the Audit Committee Charter, BP7-01.
Administrative reporting includes matters related to budget and management accounting, procedural human resource administration, administration of the organization’s internal policies and procedures such as expense approvals, leave approvals, office space, etc.
The Audit Committee delegates to the Director of Internal Audit the following authority.
The Director may conduct, or cause to be conducted, audits, reviews, and investigations for any matter that, in the Director’s professional judgment, may pose a risk the System. All investigations will be reported to the Committee Chair prior to the initiation of fieldwork. Should the Committee Chair be unreachable, the Director will contact at least one other Audit Committee member prior to initiation of fieldwork. The Committee Chair will be notified as soon as is practicable. Audits shall be approved during the annual plan process; any significant deviation shall be reported to the Audit Committee Chair. The Director shall be held accountable to the Audit Committee for deployment of resources and effective use of the same.
In the performance of audits, reviews and investigations, with stringent accountabilities of safekeeping and confidentiality, the Department of Internal Audit shall have unrestricted access to all organizational activities, records, property, and personnel. Records may be accessed whether electronic or in other formats, with or without advance notification.
In the supervision of staff, the Director shall have the authority to hire, evaluate and terminate employees within the policies and procedures of System Human Resources. Vacation, sick leave and other leave shall be approved by the Director. In the operation of the Internal Audit Department, the Director shall have the authority to approve purchases within the policies, procedures and authorization limits of the System office.
To ensure the independence and objectivity of the internal audit function, the Department of Internal Audit shall have no direct responsibility or authority for activities or operations that may be audited or reviewed.
Policies & Procedures
The Director of Internal Audit reports functionally to the Audit Committee. All policies, procedures and reports developed by the Internal Audit Department are reviewed and approved by the committee.
Our audit process generally is to plan our audits in advance, notifying the college president, chief financial officer and controller of the audit. The auditors then coordinate scheduling with the auditee, and provide a list of documents that will aid in the timely completion of the audit. It is our goal to make our processes as effective and efficient as possible.