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This list is intended to help answer some of the most common
questions we receive. The answers incorporated into this document are of a
general nature. For more specific questions, please contact us. Thanks! |
Q: Where is the USNH Internal
Audit Department (IAD) located?
A: We are located in the 11 Brook Way Building in room 107
on the UNH-Durham campus.
Q: What services do you perform?
A: We perform financial, operational, and compliance reviews of departments,
colleges and processes throughout USNH. In addition, we assist USNH's external
auditors (PricewaterhouseCoopers) in performing annual audits of USNH's
financial statements and A-133 compliance including Student Financial
Assistance. We also engage in various management consulting projects as
requested by members of management and the Audit Committee of the USNH Board of
Trustees.
Q: How do you select areas for
review?
A: The majority of our reviews are scheduled as a result of our periodic
analysis of all auditable units (departments or colleges throughout USNH) by
weighing various risk factors such as the size, nature of financial operations
and public sensitivity of the auditable unit. In addition, some of our audits
are mandated by external regulations, such as Athletics (NCAA requirements) and
Student Financial Assistance (Federal Auditing Requirement).
Q: If our area is selected for a
review, what should we do?
A: If your area is selected for a review, the responsible Dean, Director or
VP will be notified. We will then determine with you the best time frame and
schedule a time accordingly. We will hold an entrance conference to discuss
specific objectives of our audit, timing, resource requirements and any
questions or concerns that management may have. Attendees at the entrance
conference usually include the campus CFO, Controller, responsible Dean or
Director, and Business Manager, along with the IAD Director, Manager, and Senior
Auditor. Prior to our arrival at your area, we will request financial
information, chart of accounts, policies and procedures, brochures, etc. Upon
our arrival, we will obtain an understanding of the nature of financial
operations and the system of internal accounting controls over those operations.
We will then do some testing of specific transactions. Also see departmental
review process.
Q: What do you look for during
your reviews?
A: Our goal is to determine whether an area is operating efficiently and in
accordance with good business practices and university system policies and
procedures. We accomplish this by obtaining an understanding the nature of the
organization, including the organization structure, size of budget, significance
of its operations to the mission of the University or College, regulations
affecting the area, and the accounting control procedures in place. We evaluate
the strengths and weaknesses of the overall internal control structure, and
discuss our assessment with management. We may select a sample of transactions
(revenues and expenditures) to test against applicable policies and procedures
(internal, USNH, State, Federal, etc.). These tests are conducted to verify
whether procedures are functioning as they were designed and whether they
adequately and appropriately capture all economic events. All results of tests
are communicated to management. Please refer to our list of common audit
findings.
Q: What are internal controls?
A: Internal controls are policies and procedures implemented to accomplish a
number of objectives including:
-
preventing, detecting, and correcting
errors and irregularities
-
safeguarding assets
-
ensuring compliance with laws and
regulations
-
promoting efficiency and cost
effectiveness
-
increasing reliability of financial
and statistical reports
-
avoiding costs of investigations and
other costs related to fraud
Typical financial controls include
proper authorizations of expenditures, timely deposits of revenue, and periodic
reconciliations of financial transactions among others.
All employees have a role to play in
effecting internal controls. Any weak link in the organizational structure can
create a weakness in the control system.
Q: What is the relationship
between Internal Audit and the Controller's
Office?
A: The Controller's Office (C.O.), among other things, is responsible for
establishing and enforcing financial policies and procedures, reviewing and
approving financial transactions, and for the financial reporting of USNH
results of operations. Internal Audit reviews departmental procedures and
specific transactions during a review or audit to verify compliance with C.O.
policies and procedures. In our reviews, we utilize financial information
prepared by the C.O. and work with C.O. personnel to determine where issues
exist. Both the Controller and the Director of the Internal Audit Department
report to the USNH Vice Chancellor for Financial Affairs/Treasurer. The Director
of IAD also reports directly to the Audit Committee of the USNH Board of
Trustees.
Q: What is the process for
responding to recommendations in an audit report issued by USNH Internal Audit?
A: After an exit
conference occurs with management management responds in writing
to the recommendations we have put forth in our report. The ultimate
responsibility for the responses rests with the campus CFO, but should be
formulated by the personnel most directly qualified to address our
recommendations. The typical management response should indicate whether
management agrees or disagrees with the recommendation, it should address the
specific finding, and it should specify the corrective action that management
will take and when. All responses should be delivered to the Director of
Internal Audit. Responses are incorporated into the final report. The final
report is submitted to the Audit Committee of the USNH Board of Trustees.
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