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, internal control, and governance processes.
Authority and Independence
The Utah State Board of Education (the Board) is required by Utah Code 63I-5-201(4) to direct the establishment of an internal audit. The Internal Audit Department of the Board was established by Administrative Rule R277-116 and has the authority to audit all agencies governed by or provided resources by the Board, including:
- The Utah State Office of Education
- The Utah Schools for the Deaf and Blind
- The State Charter School Board
- Sub-recipients (entities sub-awarded funds by the above organizations)
The Internal Audit Department is required to follow professional internal auditing standards and those standards require the internal audit function to be independent of management; therefore, the Internal Audit Department will not make management decisions or participate in daily operations other than to consult as requested.
Internal Audit Responsibilities
Internal Audit responsibilities are outlined in the Utah Code and Administrative Rule noted above as well as the Internal Audit Policy and Procedure Manual and Internal Audit Department Charter. These responsibilities include participating in an annual risk assessment, preparing an annual prioritized audit plan that is approved by the Audit Committee of the Board, performing performance, financial and/or compliance audits, and reporting audit results. The Internal Audit Department also maintains a hotline and investigates any allegations reported.
The Internal Audit Section reports directly to the Audit Committee of the Board. Draft reports, which are considered confidential, protected documents, will be provided to the full Board and the Superintendent’s office, or appropriate management personnel, for a response. The response and any other feedback will then be incorporated into the final report. The final report will then be presented to the Audit Committee of the Board, who will make appropriate motions to release reports to the full Board.