NDSU POLICY
The University's policy on internal auditing is incorporated in the NDSU Policy Manual Section 719.

OBJECTIVES OF AUDITS AND REVIEWS
The work of the internal audit department includes the following general objectives:

Determining that the University's overall internal control system and unit administrative controls or activities are adequate, effective, efficient, and functioning. Audits are to be conducted periodically so all major systems are reviewed every two years.

Determining the reliability and adequacy of the accounting, financial, and reporting systems and procedures.

Determining, on a test basis, that University activities (including grants and contracts received or made) conform with University policies and procedures, state and federal laws and regulations, contractual obligations, and good business practices.

Determining the extent to which University assets are accounted for and safeguarded from losses of all kinds, and verifying, on a test basis, the existence of assets.

Evaluating operational procedures to determine whether results are consistent with established objectives and goals, and whether the procedures are carried out as planned.

Evaluating the design of major new electronic data processing systems and major modifications to existing systems before installation to determine whether the system of internal control is adequate, effective, and efficient.  Sufficient information regarding system internal controls must be provided to the auditors before installation. This information is needed to avoid the additional cost and interruption of revising and correcting inadequate system controls for a newly installed or modified system.

In addition, the internal department conducts investigations, as required or directed by the President.

SCOPE OF AUDIT COVERAGE
The general scope of audit coverage is University-wide and no function, activity, or unit of the University is exempt from audit or review. No officer, administrator, or staff member may prohibit internal auditor from examining any University record or interviewing any employee or student that the auditor thinks relevant to the audits and reviews. Additionally, internal auditor has authority to audit the accounts of all organizations required to submit financial statements to the University.

TRAINING
Internal Control – A 20-minute videotape on Internal Controls for College and Universities by the Association of College and University Auditors is available for checkout by emailing the Internal Auditor.

Financial Systems - Training sessions on PeopleSoft's financial systems can be scheduled by contacting Cynthia Rott at Cynthia.Rott@ndsu.edu

JHRMS Systems - Training sessions on PeopleSoft's HRMS systems can be scheduled by contacting Brittnee.Steckler at Brittnee.Steckler@ndsu.edu

Student Systems - Training sessions on PeopleSoft's student systems can be scheduled by contacting James Kennedy, at James.Kennedy@ndsu.edu

 Online Assistance is also available for all three systems at: http://www.helpcenter.nodak.edu/ndus/

AUDITS / DOCUMENTS / PUBLICATIONS
To meet the objective related to Internal Control, each department will be asked to complete an Internal Control Questionnaire on a biennial basis.
NDSU financial & compliance audit by the State Auditor's Office:

RESOURCES, OTHER NDSU AND EXTERNAL LINKS
    GOVERNMENT DOCUMENTS
           Office of Management and Budget Circular A-21, Cost
           Principles for Educational Institutions

           Office of Management and Budget Circular A-110, Grants and
           Agreements with Institutions of Higher Education, Hospitals,
           and Other Non-Profit Organizations

           Office of Management and Budget Circular A-133, Audits of
           Institutions of Higher Education and Other Non-Profit
           Institutions

           CASB Standards, Cost Accounting Standards for Educational
           Institutions, described in OMB Circular A-21, referenced above

    For NDSU Locations
           Financial Offices:  http://www.ndsu.nodak.edu/ndsu/administration/vp/vpbf/finaffairs.shtml
           Policy Manual:  http://www.ndsu.nodak.edu/policy/

    For Other Locations
           Association of College and University Auditors:  http://www.acua.org/whatisac.htm
 
 

Internal Auditor
(701) 231-9413
Last Modified: September 14, 2005