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Internal Audit Committee

Internal Audit Committee Members

The University of Texas at Brownsville and Texas Southmost College

Dr. Juliet V. Garcia - President
Dr. Alan F. J. Artibise - Provost and Vice President for Academic Affairs
Ms. Rosemary R. Martinez - Vice President for Business Affairs
Ms. Meloney Linder - Vice President for Institutional Advancement
Dr. Hilda Silva - Vice President for Student Affairs
Mr. Irvine W. Downing - Vice President for Economic Development and Community Services
Dr. Luis Colom - Vice President for Research
Dr. Marilyn Woods - Executive Assistant to the President
Mr. Ruben Garcia - State Farm Insurance

Internal Audit Committee Charter

Authority

The University of Texas System (UT System) Policy 129 - "Internal Audit Activities" (previously Business Procedures Memorandum 18), authorizes the establishment of an institutional audit committee. Exhibit A, System-wide Internal Audit Charter, states “Each institution will organize and maintain an institutional audit committee.”

Role

The University of Texas at Brownsville and Texas Southmost College (UTB/TSC) Audit Committee is an essential part of the Risk Management and Internal Control infrastructure of the institution and of the University of Texas System. Its primary responsibilities are to assist the President in the:

  • Oversight of the institution’s financial statement preparation process,
  • Oversight and direction of the institution’s internal auditing function,
  • Oversight of any external public accounting firms hired by the institution,
  • Reporting of risk management and audit activity to the Executive Vice-Chancellor for Academic Affairs and, through the Director of System Audits, to the Audit, Compliance, and Management Review Committee of the Board of Regents (ACMR)

Membership

The President shall appoint the members of the Audit Committee. Membership should include:

  • The President, Vice President for Academic Affairs/Provost, Vice President for Business Affairs, Vice President for External Affairs, Vice President for Administration and Partnership Affairs, Vice President for Student Affairs, Vice President for Institutional Advancement, and other key members of senior management of the institution, as appropriate
  • At least one member from outside the institution (chosen by the President) is strongly encouraged
  • The Chairman is appointed by the President. The President may be the Chairman.

The Director of Internal Audits, the representative of the Executive Vice-Chancellor for Academic Affairs, 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.

Education

The U.T. System Controller’s Office and/or the System Audit Office are responsible for providing 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.

Meetings

The Audit Committee should meet periodically (at least quarterly) as determined by necessity and at the request of the President, and provide for direct communication with the Director of Internal Audits, external public accounting firms hired by the institution, and senior management. Evidence of the discussions and the actions taken by the committee should be reflected in recorded minutes of the meetings. A majority of members constitutes a quorum and attendance should be recorded in the minutes.

Responsibilities

The Audit Committee’s specific responsibilities in carrying out its oversight and reporting roles are delineated in the Audit Committee Responsibilities Checklist. The responsibilities checklist will be updated annually by the Audit Committee to reflect changes in regulatory requirements, authoritative guidance, UT System guidance, and best practices in business and financial risk management. As the compendium of Audit Committee responsibilities, the most recently updated responsibilities checklist will be considered an addendum to this charter.

Internal Audit Committee Responsibilities Checklist

General

  • The committee will perform such other functions as assigned by the Audit, Compliance, and Management Review Committee of The University of Texas Board of Regents.
  • The committee shall meet four times per year or more frequently as circumstances require or at the request of the institution president.
  • The Director of Internal Audits in consultation with the Chairman of the Institutional Audit Committee will prepare the agenda for the committee meetings.
  • The Director of Internal Audits will be responsible for maintaining a record of the approved minutes of each Institutional Audit Committee meeting.
  • Annually review the Institutional Audit Committee Charter and assess their performance of the responsibilities delineated in that charter.
  • Meet privately with the Director of Internal Audits, 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.

Oversight of the Financial Statement Preparation Process

Determine that institution management has assumed responsibility for identifying (risk assessment) and managing (internal controls) the business and financial risks.

Oversee the preparation of the institution’s financial statements through the review of:

  • The closing process used by the institution,
  • The certifications by the President and Financial Reporting Officer
  • Financial and internal controls information provided in internal audit documents
  • Financial and internal control information provided by external public accounting firm audits,
  • Analytical information provided by institution management, internal audit, and/or external auditors,
  • The methodology used to identify, assess, and manage possibilities for fraud in business and financial processes, and
  • Any off-balance sheet transactions/arrangements that have, or are reasonably likely to have, a current or future effect on the System’s or any of the institution’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to users of the financial statements. The discussion should include the extent of the off-balance sheet transactions/arrangements and whether GAAP or other regulations results in the financial statements reflecting the economics of such transactions/arrangements

Oversight of the Internal Auditing Function

  • Approve an Internal Audit Charter that is consistent with the Texas Internal Auditing Act and the 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 the institution and its identified risks and make recommendations to the president 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 Internal Audits.
  • Provide input to the president on the hiring and dismissal of the Director of Internal Audits.

Oversight of the External Public Accounting Firms

  • Monitor the institution’s contracting with all external public accounting firms to ensure compliance with the requirements of UTS 142.1 "Annual Financial Report Policy" (previously BPM 3 - “Annual Financial Report”) and the operating rules of the Audit, Compliance, and Management Review Committee of The University of Texas Board of Regents.
  • Review the reports of all external public accounting firms contracted by the institution to perform audits of any institution functions, components, activities, or financial information.
  • Monitor all activity by the State Auditor’s Office.

Reporting to the ACMR and U.T. System

The Institutional Audit Committee and the Director of Internal Audits are responsible for providing the following information to the System Audit Office for use by the Audit, Compliance, and Management Review Committee in discharging its oversight duties for the U.T. System:

  • 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 through the System Audit Office
     

Contact Information
80 Fort Brown
Oliveira Library 234
Brownsville, Texas  78520
Phone: (956) 882-7023
Fax: (956) 882-3816
Email: Norma.Ramos@utb.edu