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UT Tyler Office of Audit Services

Our Institutional Audit Committee

Members

External Members:

  • Mr. Jeff Austin III, Chair, Vice Chairman of the Board, Austin Bank
  • Ms. Mary Barr, Retired Director of Compliance, UT Tyler
  • Mr. Wayne Barton, CPA, Squyers, Johnson and Squyers, LLP

Internal Members:

  • Dr. Rodney Mabry, President
  • Dr. Ross Sherman, Interium Provost and Vice President for Academic Affairs
  • Mr. Jesse Acosta, Vice President for Administration
  • Dr. Howard Patterson, Vice President for Student Affairs
  • Dr. Sherri Whatley, Vice President Technology and Chief Information Officer
  • Mr. Lee Murray, Director of Compliance and Risk Management

Ex-Officio Members:

  • Mr. J. Michael Peppers, Chief Audit Executive, UT System
  • Ms. Lou Ann Viergever, Executive Director of Audit and Consulting Services, UT Tyler
     

Institutional Audit Committee Charter

Purpose

The Institutional Audit Committee (IAC) is an essential component of the risk management and internal control infrastructure of The University of Texas at Tyler (UT Tyler) and of the University of Texas System (UT System). The primary responsibilities of the IAC are to assist UT Tyler's president in fulfilling:

Oversight of the UT Tyler's financial reporting process; oversight of the system of internal control for the university; oversight and direction of the institution's internal auditing function; oversight of any external public accounting firms hired by the institution; and reporting of risk management and audit activity to the appropriate UT System executive vice-chancellor and, through the director of system audits, to the Audit, Compliance, and Management Review (ACMR) Committee of the Board of Regents.

Authority

The University of Texas System Policy 129, "Internal Audit Activities," authorizes the establishment of the Institutional Audit Committee. Appendix A, "System-wide Internal Audit Charter," states: "Each institution will organize and maintain an institutional audit committee."

Membership

The UT Tyler president appoints the members of the Institutional Audit Committee. Membership should include the president, chief business officer, chief academic officer and other key members of senior management of the institution. At least one member from outside the institution (chosen by the president) is strongly encouraged and the chairman is appointed by the president. The president may be the chairman.

The UT Tyler director of audit services, the representative of the appropriate UT System executive vice-chancellor and the representative of the director of system audits are non-voting members of the committee who serve as resources to assist the committee in carrying out its responsibilities.

Meetings

The IAC will meet periodically, usually four times a year, with authority to convene additional meetings as circumstances require. All IAC members are expected to attend each meeting in person. The IAC will invite members of management, auditors or others to attend meetings and provide pertinent information as necessary.

Meeting agendas will be prepared and provided in advance to members, along with appropriate briefing materials. The director of audit services, in consultation with the chairman of the IAC, will prepare the agenda for the committee meetings. The director of audit services will be responsible for preparing meeting minutes. The majority of members constitute a quorum and attendance should be recorded in the minutes.

Education

The UT System Controller's Office and/or the System Audit Office are responsible for providing UT Tyler's Institutional Audit Committee members with educational resources related to accounting principles and procedures, business and financial risk management, internal auditing standards and best practices, and other information necessary to discharge their responsibilities.

Responsibilities

The IAC will carry out the following responsibilities:

Oversight of the Financial Reporting Process

Determine that UT Tyler management has assumed responsibility for identifying (i.e. performing a risk assessment) and managing (i.e. implementing internal controls) the business and financial risks. Oversee the preparation of UT Tyler's financial statements through the review of: the closing process used by UT Tyler Administration; the certification process outlined in the University of Texas System UTS 142, "Policy on the Annual Financial Report"; financial and internal control information provided in internal audit documents; financial and internal control information provided by external public accounting firm audits; analytical information provided by management, internal audit and/or external auditors; and the methodology used to identify, assess and manage possibilities for fraud in business and financial processes.

Determine that the individual UT Tyler department management has assumed responsibility for identifying and managing the business and financial risks.

Oversight of Internal Control

Consider the effectiveness of UT Tyler's internal controls system, including information technology security and control. Understand the scope of internal and external auditors' review of internal control over financial reporting, and obtain reports on significant findings and recommendations, together with management's responses.

Oversight of the Internal Auditing Function

Approve an Internal Audit Charter that is consistent with the Texas Internal Auditing Act and The Institute of Internal Auditors' International Standards of the Professional Practice of Internal Auditing. Periodically review the Internal Audit Charter to ensure it encompasses any required revisions. Review the risk assessment methodology used to develop the internal audit Annual Work Plan to ensure that all applicable business and financial risks have been identified.

Review the Annual Work Plan to ensure appropriate coverage for risks identified in the risk assessment, including coverage of significant financial and information systems. Approve the Annual Work Plan and all changes thereto. Review quarterly the status of completion of the Annual Work Plan. Receive the results of all completed internal audit engagements. Receive reports of Confidential Reporting Mechanism activity that relates to internal controls, financial management, internal auditing or external auditing.

Review all significant recommendations and management action plans to address those recommendations. Monitor the status of management action plans for significant recommendations. Approve the utilization of internal audit resources outside the Annual Work Plan. Review staffing and organization of the internal audit activity for appropriateness in relation to UT Tyler and its identified risks and make recommendations to the president and chairman if necessary.

Request an annual self-assessment by the internal audit function and review the results. Ensure that an External Peer Review is performed at least once every three years and review the results. Provide input to the President for the annual evaluation of the director of audit services. Provide input to the president on the hiring and dismissal of the director of audit services.

Oversight of External Public Accounting Firms

Monitor UT Tyler's contracting with all external public accounting firms to ensure compliance with the requirements of UTS 142 and the operating rules of the ACMR Committee of the UT System Board of Regents. Review the reports of all external public accounting firms contracted by UT Tyler Administration to perform audits of any UT Tyler functions, components, activities or financial information. Monitor all activity by the State Auditor's Office and the State Comptroller's Office related to UT Tyler.

Reporting to the ACMR Committee of the UT System Board of Regents

The Internal Audit Committee and the director of audit services are responsible for providing the following information to the ACMR Committee of the UT System Board of Regents in discharging its oversight duties for UT Tyler:

Annual Work Plan and changes thereto. Quarterly status of the Annual Work Plan and completed engagements. Confidential Reporting Mechanism activity. Significant recommendations. Status of significant recommendations. Contracts with external public accounting firms. Other matters as requested by the ACMR Committee of the UT System Board of Regents.

The IAC will perform functions as assigned by the ACMR Committee of UT System. The IAC will periodically review the Internal Audit Committee Charter and assess their performance of the responsibilities delineated in that charter. The IAC will meet privately with the director of audit services, external public accounting firms and the State Auditor's Office at least annually, or as appropriate. Other executive sessions may be appropriate to assess the performance of the internal audit function.

Other Responsibilities

The IAC will perform functions as assigned by the ACMR Committee of UT System. The IAC will periodically review the Internal Audit Committee Charter and assess their performance of the responsibilities delineated in that charter. The IAC will meet privately with the director of audit services, external public accounting firms and the State Auditor's Office at least annually, or as appropriate. Other executive sessions may be appropriate to assess the performance of the internal audit function.

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