Internal Audit Services

Vision 

We are change agents committed to providing innovative and objective solutions that add value and improve operations.

Goals

• Develop and implement an audit plan based on an annual risk assessment.
• Ensure that Richmond Public Schools programs, schools, and departments comply with applicable policies, procedures, plans, laws and regulations.
• Improve the District's understanding of internal audit functions and services.
• Investigate observed, alleged or suspected wrongdoing to prevent and detect fraud, waste, and abuse in district programs and activities.
• Maintain a dynamic, team-oriented environment which encourages personal and professional growth, and challenges and rewards our employees for excelling and reaching their full potential.
• Encourage self-reviews of systems and procedures.

Charter

Purpose
Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Professional Standards
The Internal Audit staff will govern themselves by adherence to The Institute of Internal Auditors’ Code of Ethics and the Institute’s International Standards for the Professional Practice of Internal Auditing. These Standards will be used in conjunction with the Government Auditing Standards (generally accepted government auditing standards) issued by the Comptroller General of the United States. In addition, Internal Audit will adhere to Richmond Public Schools policies and procedures.

Role and Organization
Internal Audit Services established by the School Board, functions in accordance with the bylaws and policies of the School Board. The Chief Auditor is supervised and evaluated by the School Board. The Chief Auditor shall give to the School Board and/or to a committee thereof as so established by the School Board status reports and other reports as requested. These reporting relationships ensure departmental independence, promote comprehensive audit coverage, and assure adequate consideration of audit recommendations. The Chief Auditor shall, at a minimum, meet with the School Board and/or to a committee thereof as established by the School Board on a quarterly basis to discuss audit issues, reports, and plans.

Authority
In performance of their duties, the Internal Audit staff will be granted full and complete access to any of the school division's records (either manual or electronic), properties, and personnel as may be required, but with equivalent accountability for safekeeping and confidentiality. The Chief Auditor and audit staff shall allocate resources, set frequencies, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.

Objectivity
Internal auditors have no direct responsibility or any authority over any of the activities or operations that they review. The performance of these reviews does not relieve management of any assigned responsibilities. Objectivity is essential to the audit staff in the proper fulfillment of their duties. They should not develop and install procedures, prepare records, and/or engage in activities, which would normally be reviewed by internal auditors.

Responsibilities
The Chief Auditor and audit staff are responsible for assessing the various functions and control systems in the school division and for advising management concerning their condition. The fulfillment of this accountability is not confined to but includes: 

• Developing a flexible annual audit plan using appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the School Board for review and approval 
   
• Implementing the annual audit plan, as approved or as amended, including, and as appropriate, any special tasks or projects requested by management and approved by the School Board
   
• Maintaining a professional audit staff with sufficient knowledge, skills, experience, and professional certifications to meet the requirements of this Charter;
   
• Appraising the effectiveness and application of administrative and financial controls and reliability of data that is developed within the school division;
   
• Evaluating employee’s compliance with the School Board’s plans, policies and procedures and compliance with governmental laws and regulations
   
• Ascertaining the adequacy of controls for safeguarding assets, and when appropriate, verifying the existence of assets
   
• Reviewing and appraising the economy and efficiency with which the school division’s resources are employed and make appropriate recommendations to management
   
• Reviewing operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned
   
• Coordinating audit planning and scheduling activities with Richmond Public Schools management
   
• Performing consulting services, beyond internal auditing’s assurance services, to assist management in meeting its objectives. Examples may include facilitation, process design, training, and advisory services
   
• Assisting in the investigation of significant suspected fraudulent activities within the organization and notify management and the School Board of the results
   
• Establishing a quality assurance program by which the CAE assures the operation of internal auditing activities
   
• Issuing periodic reports to the School Board and management summarizing results of audit activities; and
   
• Considering the scope of work of the external auditors, as appropriate, for the purpose of providing optimal audit coverage to the organization at a reasonable overall cost.

Reporting Accountabilities
A draft report will be prepared and issued by the Chief Auditor to the administrator of the activity or department reviewed and the division superintendent. The administrator will review the draft report and submit a written response to the Chief Auditor in a timely manner. The response to the audit findings and recommendations will indicate the administrator's concurrence or non-concurrence and the basis for the latter. In addition, the response will indicate what actions are planned in regard to the specific findings and recommendations in the audit report. An action plan with a timetable with anticipated completion dates will be included.

The Chief Auditor will issue a final audit report including management’s response to the School Board and send a copy to the division superintendent.

Internal Audit shall be responsible for appropriate follow-up on audit findings and recommendations. All significant findings will remain in an open issues file until cleared by the Chief Auditor.

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LEGAL REFERENCE: Code of Virginia, 1950, as amended, §§ 22.1-68, 22.1-89, 22.1-115, 15.2-2511, 15.2-2511.2; Virginia Administrative Code, 8 VAC 20-240-10.

Adopted April 19, 2010