Internal Audit

What is the program’s mission statement or statement of purpose? Why does the program exist?

Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve the university's operations.  The Fiscal Control and Internal Auditing Act, an Illinois state statute, requires that the university "maintain a full-time program of internal auditing."

How does the program mission align with the university mission?

The Office of Internal Auditing strives to ensure that the University has the internal controls in place to mitigate risk to the University's financial and public reputation.

Whom does the program serve?

Internal Auditing serves the university as a whole by examining and evaluating university operations and reporting any deficiencies to management.

What are the services provided? How do these services align with the university mission and program mission?

The Internal Auditing staff conducts financial, compliance and/or operational audits; performs reviews of programs, systems, etc.; and provides consulting services to the university community regarding policies that affect the university.

Describe the program’s origins (e.g. year established, purpose, expectations).

The Office of Internal Auditing was established prior to January, 1984.  Its purpose has changed very little over the past 30 years but new rules, regulations and policies and the constant advances in technology has drastically changed what is audited and how it is audited.

How has the unit changed or adapted over time?

The staff of Internal Auditing stays up on the changes to the profession by participating in continuing professional education (a minimum requirement of 80 hours every two years), belongs to two auditing associations and communicates with other Illinois state agencies which includes the other eight state universities.

If needed, provide supplemental comments to help the reader understand the program’s history and relevance to university mission.

Provide data, if available, on the numbers of students, faculty, staff, or others served by the program during the past four years. If no data are available, please estimate the numbers served annually.

Internal Auditing services the entire university community by providing the University's administrators and Board of Trustee members with information about the adequacy and effectiveness of the University's system of internal controls and quality of operating performance.

Does the program offer any co-curricular opportunities for students (e.g., internships, RSO support, service-learning activities)? Please describe.

Though not at this time, internships have been available in the past.

Does the program contribute to the delivery of academic programs (e.g., providing professional expertise, serving as adjunct faculty)? Please describe.

Not at this time.

If needed, provide supplemental comments to help the reader understand the internal demand for the program. Note any clarifications or special circumstances (e.g., curriculum changes made by another program) that should be considered when reviewing the above data.

Is the program accredited or approved by a recognized external agency or otherwise certified to meet established professional standards? Provide an executive summary of and link to the program’s most recent accreditation or certification report, if available.

The program is not accredited or approved by a recognized external agency, however we are required by law to perform our duties under the guidance found in the International Professional Practices Framework promulgated by the Institute of Internal Auditors (IIA).  In addition, staff members can attain a number of certifications relevant to the profession such as the Certified Internal Auditor (CIA), the Certified Fraud Examiner (CFE) and a Certification in Risk Management Assurance.  Eastern currently has one staff member that is a CIA.

Is the program required to meet any regulatory or legal requirements? Is the program subject to any special auditing requirements?

The Fiscal Control and Internal Auditing Act requires that the Director of Internal Auditing submit to the president each year a two-year audit plan by July 1 and a report on the status of the previous fiscal year's audits and findings by September 30.  Also, included in the Fiscal Control and Internal Auditing Act are certain areas that must be audited on a two-year basis.

What are the most important outreach or public service activities supported by the program?

Not applicable.

How do the local community and the region benefit from the program?

Not applicable.

If needed, provide supplemental comments or data sources to help the reader understand the external demand for the program.

What are the two or three more important measureable outcomes tracked to assess program quality? Does the program conduct an outcomes assessment, and if so, what has been the impact?

Quality and quantity of audit work completed.  We do not conduct an outcomes assessment.

What are the two or three most effective best practices that the program has implemented? What benefits have been gained from implementing these best practices?

Internal auditing conducts it audits based on the International Professional Practices Framework which is a guidance promulgated by The Institute of Internal Auditors.  These are the standards & guidances used by the majority of internal auditors worldwide.

What external recognitions (e.g., awards, accommodations, professional certifications, references in trade publications) have the program and its staff received in the past three years?

One current employee achieved the Certified Internal Auditor designation in FY13.  This is a highly regarded designation in the internal auditing profession and is achieved through testing similar to the CPA exam.

Is the program active with any regional, national, or international professional organizations?

The two staff members have individual memberships in The Institute of Internal Auditors (IIA) and the department has a membership in the Association of College and University Auditors (ACUA).

Note any presentations, publications, or offices held in the last three years.

The Office of Internal Auditing presents at the university's Leading Edge program each year.

If needed, provide supplemental comments or data sources to help the reader understand the quality of program outcomes.

Note any special benefits (e.g., personnel support, equipment, permanent improvements) that the program has received in the past three years from its grants and other sponsored programs.

Not applicable.

How does the program benefit from donor gifts (e.g., scholarships, endowed chairs)? Does donor support provide a significant percentage of the program’s overall funding?

Not applicable.

List two or three key relationships that the program maintains with external constituencies (e.g., community colleges, other universities, government bodies). How do these relationships advance the university mission or otherwise benefit the university?

The staff of internal auditing participates in a list-serve of members of the Association of College and University Auditors.  This keeps them informed of issues that are being discussed world-wide in higher education audit departments.  Also, we have a list-serve for discussions that are specific to the 9 Illinois state universities.

Our membership in The Institute of Internal Auditing allows us to keep up on the changing world of auditing through publications and webinars.

If needed, provide supplemental comments to help the reader understand the resources generated by the program. Note any clarifications or special circumstances (e.g., revenue pass-throughs) that should be considered when reviewing the above data.

Provide an executive summary of and link to any metrics or benchmarks that the program tracks to measure productivity.

Not applicable.

What initiatives has the program implemented to enhance staff productivity (e.g., access to training, workflow improvements)? Briefly describe the costs and benefits of these initiatives.

Staff are encouraged to attain certifications that are relevant to the internal auditing profession.  The costs for this would be a reimbursement for testing fees and travel to take the tests once the certification is received.  Studying is on the staff members personal time.  Staff are also encouraged to attend seminars, training &/or conferences relevant to their duties.  However, with budget restraints, most education is received through complimentary webinars provided by the institutions that the office/staff are members of.

If needed, provide supplemental comments to help the reader understand the productivity of the program. Note any clarifications or special circumstances (e.g., accreditation requirements, curricular changes, program restructuring) that should be considered when reviewing the above data.

If needed, provide supplemental comments to help the reader understand the costs associated with the program. Note any clarifications or special circumstances (e.g., expenditures made centrally or externally, expenditures made on behalf of other units) that should be considered when reviewing the above data.

1/3 of the salary of one staff member is paid by Business Services.  Contractual expenditures are our greatest expense due to membership dues and software maintenance.  Internal Auditing has software for automated workpapers which allows us to be more efficient, more consistent and paperless.  We have recently purchased a data mining software that will allow us to do some continuous auditing which will be more effective and efficient.  We are able to keep our travel costs down by utilizing complimentary webinars for our required continuing professional education hours.

How does the program seek to distinguish itself from similar programs at other institutions?

The Internal Auditing staff at each of the nine state universities draws from each other but their challenges are different.  Staff size, department funding, audit areas to cover and administration support are a few of the challenges that each university must face.  We do not seek to be different from other auditing departments at other institutions, we simply try to do our best for our university.

Note any unique and/or essential contributions that the program makes to the university.

None noted at this time.

Provide any program-specific metrics that help to document program contributions or program quality. Examples of some commonly used program-specific metrics may be found here.

If needed, provide supplemental comments to help the reader understand the program impact on the university mission.

Provide a link to or listing of the program’s goals and/or strategic plan.

The continuing goal of the Office of Internal Auditing is to provide the administration with the adequate information they need to ensure that the university is operating in an effective and efficient manner and in compliance with relevant federal, state, university and departmental laws/policies.  Our strategic plan is to continually seek new ways to assist us in this goal through education and technology opportunities.

What role will the program have in the implementation of the university’s strategic plan (provide link to strategic plan)?

As in the past, our role will be to report to administration any deficiencies we encounter during the course of our work.  There is no specific link to the strategic plan.

In the next two or three years, what best practices, improvements in operations, or other opportunities to advance the university’s mission are likely to be implemented?

The Office of Internal Auditing will continue to monitor changes in auditing practices, new legislation and technology advancements that could assist our office in providing the best coverage for the administration at the university.

If needed, provide supplemental comments to help the reader understand future opportunities for the program.