Procedures for University Personnel and External Auditors
Introduction
The purpose of this statement is to outline procedures for University personnel and external auditors in the examination of University financial operations. External auditors include the staff of the Auditor of State; private auditing firms engaged by the University or the Board of Regents, State of Iowa; audit staff of agencies supporting sponsored programs; the Internal Revenue Service; the Iowa Department of Revenue; and others.
The University receives a substantial amount of Federal Awards each year and is, therefore, subject to the Federal Office of Management and Budget (OMB) Circular A-133 "Audits of State, Local, Governments, and Non-Profit Organizations." This circular, issued under the Federal Single Audit Act, requires an annual single or program-specific audit according to a specified expenditure threshold. A single audit includes an examination of both the University's financial statements and its Federal awards. A program-specific audit is an audit of one Federal program only.
Policy
It is the policy of the University to cooperate fully with external auditors in the performance of their duties. In exchange, the University requests that auditors observe certain procedures to facilitate orderly reviews. The procedures are detailed in the following paragraphs.
General
Auditors are assured of full cooperation in arranging contacts with University employees who can facilitate their audit. Auditors are requested to arrange all contacts through the Controller. Advance arrangements will ensure (1) that the proper persons are on hand to assist the auditors, (2) relevant records are located and available, (3) the interview is scheduled so as to provide minimum disruption of departmental activities, and (4) required facilities and services are available.
Notifications
- By Auditor. It is anticipated that the audit agency will notify the University of proposed audits. Notice should be given to the Controller. The notice should indicate the scope and purpose of the audit. To facilitate this notice, auditors will be asked to complete a University External Audit Information Form to be supplied by the Controller. When an entrance conference is necessary the Controller will make arrangements with appropriate University officials. The audit agency may contact the University Controller by telephone at 319-273-3576.
- By Departmental Personnel. If any University employee is contacted by an auditor without prior notification from the Controller, the employee should notify the Controller at 3-3576. The visiting auditor should also be requested to contact the Controller in Gilchrist Hall.
- By the Controller. The Controller will notify the Vice President for Administration and Finance and, as applicable, other University officials regarding all known aspects of the upcoming review. The Controller will personally accompany the auditor and introduce him/her to appropriate University personnel.
Entrance Conference
The objectives of an entrance conference are to establish the purpose, scope and timing of the audit, the information required by auditors, and the physical facilities needed.
Contact During Ongoing Audits
After the audit commences and until conclusion it is important the Controller maintains contact with the auditor-in-charge. As requested, the Controller will arrange interviews, secure required documents, answer questions, and supplement interviewee statements. The purpose of such contact is to expedite the audit and to correct any erroneous information which may have been given inadvertently.
Availability of University Records
- Auditors should request University records from the departmental executive officer responsible for the document or from his or her designee. The departmental executive officer will inform the auditor as to the best place, time and method of securing records. University personnel will furnish auditors with the requested records or assist them in locating the records.
- University personnel will inform auditors where to return records. All re-filing will be done by University personnel.
- In cases where it is necessary to remove records from an office, the auditor will secure the approval of the departmental executive officer. The auditor will comply with the office procedures for identifying records removed from the files, including listing and signing for records removed.
- Any problems encountered in releasing or obtaining records should be referred to the Controller.
Availability of Findings and Exit Conferences
The purpose of the exit conference is to inform University representatives of the audit findings, to clarify possible misunderstandings, and to identify any issues that are unresolved. Any formal exit conferences should involve, when available and when appropriate, the Vice-President for Administration and Finance, the Controller, the Director of Business Operations, the Administrator of Grants and Contracts, and the Internal Auditor.
When audits are of limited scope and a formal exit conference involving several people is not practical or justified, the auditors should notify the University Controller when their field work is complete.
Scheduling of exit conferences and inviting appropriate University representatives to attend is the responsibility of the Controller.
Code of Business and Fiduciary Conduct
According to the Code of Business and Fiduciary Conduct established by the Board of Regents, State of Iowa, university employees should take no action to influence, coerce, manipulate or mislead an auditor engaged in the performance of an audit for the purpose of rendering the Institution's financial statements misleading.
Audit Reports and Responses
A copy of the audit report should be sent by the auditors to the:
- President
- Vice-President for Finance & Operations
- Controller/Director of Business Operations and Secretary
- Treasurer
- Internal Auditor
Other copies are sent to various individuals and agencies as appropriate to the subject under audit. Requests for response should be addressed to the Controller.
Questions
Questions relating to external audits are to be directed to the Controller, telephone number 319-273-6520.
Updated by Financial Accounting and Reporting Services 6/29/05