Scope of the office
The scope of work of the IA is to determine whether the Department's network of risk management, control and governance processes, as designed and represented by management, is adequate and effective; thus, functioning in a manner to ensure:
- Risks are appropriately identified and managed.
- Interaction with the various governance and stakeholder groups occurs as needed.
- Significant financial, managerial, regulatory and operating information is accurate, reliable and timely.
- Employees' actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
- Resources are acquired economically, used efficiently, adequately protected and are used for their intended purposes.
- Programs, plans and objectives are achieved.
- Compliance with laws, regulations and policies are adhered to.
- Quality and continuous improvement are fostered in the Department's control process.
- Significant legislative or regulatory issues impacting the Department are recognized and addressed appropriately.
Opportunities for improving management control may be identified during the audits. They will be communicated to the appropriate level of management.
The Internal Audit Office shall be accountable to the Superintendent of Education (Superintendent) and to the Audit Committee (AC) of the Board of Education to:
- Report on the adequacy and effectiveness of the Department's processes for controlling its activities and managing its risks in the areas set forth under the mission and scope of work.
- Report significant issues related to the processes for controlling the activities of the Department, including potential improvements to those processes, and provide information concerning such issues through resolution.
- Periodically provide information on the status and results of the annual Audit Plan and the sufficiency of internal audit office resources.
- Coordinate with and provide oversight of other control and monitoring functions (risk management, compliance, external audit, etc.).
Structure and independence
The IA serves the administrative offices and schools of the Department. To ensure the independence and objectivity of the internal audit function:
- The IA is independent of all other departments within the Department. The Internal Audit Director reports directly to the Superintendent and to the AC of the Board of Education.
- Internal auditors will perform their work by maintaining an impartial, unbiased attitude; and avoiding conflicts of interest. Any impairment to the independence or objectivity of the IA, in fact or in appearance, should be disclosed to the Superintendent and/or the AC.
- Internal audit activities will be free from interference in determining the scope of engagements, performing examinations and communicating the results.
The Internal Audit Director and staff of the IA are authorized to:
- Have unrestricted access to all functions, records (irrespective of physical form), property and all employees of the Department.
- Have full and free access to all members of the AC.
- Allocate resources, set frequencies, select subjects, determine scopes of work and apply the techniques required to accomplish audit objectives.
- Obtain the necessary assistance of personnel within the respective departments of the Department where they perform audits, as well as other specialized services from within or outside the Department.
Note 1. Assurance services involve an objective assessment of evidence for the purpose of providing an independent opinion or conclusions regarding an entity, operation, function, process, system or other subject matter. Examples may include financial, performance, compliance, system security and due diligence engagements. (Source: International Standards for Professional Practice of Internal Auditing "IIA Standards".)
Note 2. Consulting services are advisory in nature and are generally performed at the specific request of an engagement client. The nature and scope of which are also agreed upon with the client and which are intended to add value and improve an organization's operations. Examples include counsel, advice, facilitation, process design and training. (Source: IIA Standards)
Annual Financial and Single Audit Reports
IA coordinates with the state's Office of the Auditor to provide an Annual Financial and Single Audit report with an external evaluator. It is published in the spring covering the fiscal year prior, and provides a judgment about the fairness of presentation of HIDOE financial statements. The audits are required for organizations that receive federal financial assistance.