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UPPS 04.03.03 - External Audits and Auditors

External Audits and Auditors

UPPS No. 04.03.03
Issue No. 7
Effective Date: 1/02/2017
Next Review Date: 11/01/2021 (E4Y)
Sr. Reviewer: Director, Audits and Analysis

  1. POLICY STATEMENT

    1. This policy establishes expected procedures and protocol for external audits.
  2. DEFINITION

    1. An external audit is any review or investigation regarding compliance, financial or operational information, safeguarding and verification of assets, economical and efficient use of resources, and effectiveness of operations or programs conducted by external agencies such as public accounting firms, governmental auditors, regulatory offices, and funding sources.

    2. This definition excludes reviews by accrediting bodies and by consultants hired by Texas State University.

  3. PROCEDURES FOR THE MANAGERS OF AREAS AUDITED

    1. Any university department or operation that is contacted by an external auditor or funding source about an audit is required to refer them to the director, Audits and Analysis.

    2. The head of the department or operation audited should submit responses to external audit findings through their supervisory chain of command for approval prior to release and provide a copy to the director, Audits and Analysis. The director, Audits and Analysis, will not prepare responses for other departments but may, if requested by management, review and advise as appropriate.

    3. If, at any time, the audited or other university departments have questions about the audit or issues raised during the audit, they should consult with the director, Audits and Analysis.

    4. The head of the department or operation audited should keep a copy of all audit responses submitted, as well as copies of the final audit report, in the department’s master files in accordance with state and university records retention schedules. The head of the department or operation audited should also provide a copy of the final audit report to the director, Audits and Analysis.

    5. Upon receipt of a final audit report, the head of the department or operation audited has primary responsibility for ensuring that management responses are implemented within the time frame specified.

  4. PROCEDURES FOR AUDITS AND ANALYSIS

    1. The director, Audits and Analysis, will function as the liaison between the university and external auditors, coordinating audit efforts, and facilitating their work on campus. In carrying out this responsibility, the director, Audits and Analysis, will assist the university by ensuring that:

      1. audit efforts minimize unnecessary duplication of work; and

      2. external auditors have access to appropriate university information and personnel to ensure that information gathered is relevant, complete, and appropriate.

    2. The director, Audits and Analysis, should advise the external auditor of expected protocol (described in Section 05.).

    3. The director, Audits and Analysis, will ensure that copies of all external audit reports are sent to The Texas State University System (TSUS) director, Audits and Analysis, at The TSUS Office.

    4. The director, Audits and Analysis, will include in the Office of Audits and Analysis’ quarterly status report any reportable items, including management implementation plans and the completion date provided by management as reported in the external auditor’s audit report. In the event that management cannot or has not implemented plans, the director, Audits and Analysis, shall notify the vice president for the area audited, The TSUS director, Audits and Analysis, and other appropriate administrators to effect implementation or revise procedures, as the circumstances warrant.

  5. PROTOCOL EXPECTED DURING EXTERNAL AUDITS

    1. Departments that request delegated authority from the State Auditor’s Office to procure external audit services must comply with Texas Government Code Section 321.020. External auditors are expected to follow the protocol described below when conducting an audit of any department or operation of the university. All audit conferences must include managers of the audited areas, as well as a representative of the Office of Audits and Analysis.

      1. Auditors, representatives from the Office of Audits and Analysis, and officials responsible for the audited areas will hold an entrance conference.

      2. Representatives of the Office of Audits and Analysis and the audited department will hold interim conferences when significant potential problems are identified.

      3. The parties will hold an exit conference to review findings prior to preparing the final report.

      4. The divisional vice president will attend or send a representative to all conferences, as warranted.

      5. The auditors will submit a draft audit report to the director, Audits and Analysis, prior to preparation of the final audit report.

  6. REVIEWERS OF THIS UPPS

    1. Reviewers of this UPPS include the following:

      Position Date
      Director, Audits and Analysis November 1 E4Y
  7. CERTIFICATION STATEMENT

    This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

    Director, Audits and Analysis; senior reviewer of this UPPS

    President