Regulations on auditing shall be published and distributed periodically to the various operating units by the University System Office.

7.9.1 State Audits

The University System Office may request that the State Auditor perform financial statement audits or other attestation engagements at the University System Office or select USG institutions. The President of each USG institution and the USG chief fiscal officer shall make available all information to the State Auditing Department so that such engagements may be performed.

The foregoing shall not apply to separate corporate entities that are organized to provide support services to the institution.

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7.9.2 Internal Audits

The Board of Regents shall establish and support an internal audit function to assist the Board, the Chancellor, and institution presidents in the effective discharge of their responsibilities. The internal audit function shall be governed by an audit charter approved by the Board, which shall describe the purpose of an internal audit, reporting requirements, responsibility, authority, and scope of work. Responsibility for approving an annual audit plan; reviewing audit results, reports, and recommendations; and approving the Chancellor’s appointment and termination of the USG chief audit officer shall be assigned to the Board of Regents’ Committee on Internal Audit, Risk, and Compliance.

Internal audit leads at USG institutions shall have a direct reporting relationship to the President of that institution and the USG chief audit officer. The President of each institution that has an internal auditor shall determine the organizational and operating reporting relationships of the internal auditors at the institution and exercise oversight of institutional risk management as defined in Board Policy. The USG chief audit officer may direct the internal auditors to audit specific functions at their institutions as needed to address system-wide issues or directives. The President of each institution having an internal auditor shall coordinate with the USG chief audit officer on significant personnel actions involving the institutional internal auditor, to including appointment, performance evaluations, and termination. The President may also consult with the Committee on Internal Audit, Risk, and Compliance as to proposed personnel actions involving the institutional internal auditor.

The internal audit lead of each USG institution shall meet at least annually with the USG chief audit officer to discuss audits, audit findings, audit department independence, and a proposed audit schedule.

The USG chief audit officer shall provide a system-wide annual report to the Board of Regents’ Committee on Internal Audit, Risk, and Compliance.

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