Internal Audit exists to support University administration and the Board of Trustees in the effective discharge of their responsibilities. Using knowledge and professional judgment, Internal Audit provides an independent appraisal of the University's financial, operational, and control activities. Internal audit will report on the adequacy of internal controls, the accuracy and propriety of transactions, the extent to which assets are accounted for and safeguarded, and the level of compliance with policies and government laws and regulations. Additionally, Internal Audit will provide analyses, recommendations, advisement, and information concerning the activities reviewed. The Internal Auditor will also conduct follow-up as warranted for high-risk areas and as requested by the Finance and Audit Committee and senior administration.

Monica de los Rios
Chief Ethics Officer and Interim Director, Internal Audit
2039 Kennedy Boulevard
Hepburn Hall, Room 311
Jersey City, NJ 07305-1597
Tel: 201-200-3094
mdelosrios@njcu.edu

 

Internal Audit Charter

Responsibilities and Objectives

The Internal Audit Department of  New Jersey City University has been established as an independent appraisal activity to examine and evaluate accounting, financial, and other operations as a service to management. Internal audit functions by examining and evaluating the adequacy and effectiveness of controls; examines the University’s activities and evaluates risk; compliance with and adequacy of applicable policies and procedures; and compliance with applicable laws and regulations. The objective of internal auditing is to assist management in the effective discharge of their responsibilities. To this end internal auditing provides an analysis, appraisals, recommendations, counsel, and information concerning the activities reviewed.

Scope of Activities

Internal Audit independently examines, evaluates, and reports on the three broad objectives and five interrelated components of Internal Control as defined by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. The objectives of the University’s system of internal controls include:

1. Effectiveness and efficiency of operations (including the safeguarding of resources).
2. Reliability of financial reporting; and
3. Compliance with applicable laws and regulations

To address these objectives and to promote early identification of known potential problems, Internal Audit will, as appropriate, evaluate the five interrelated components of internal control, which are:

1. Control Environment: Control environment factors include the integrity, ethical values, and competence of the University’s associates; director philosophy and operating style; the assignment of authority and responsibility, organization and development of associates and the attention and direction provided by the Board of Trustees.
2. Risk Assessment: Risk Assessment is the identification and analysis of relevant risks to achievement of established objectives, forming a basis for determining how the risk should be managed.
3. Control Activities: Control activities are the policies and procedures that help ensure that directives are carried out.
4. Information and Communication-: Pertinent information must be identified, captured, and communicated in a form and time frame that enables the University to carry out its responsibilities.
5. Monitoring: The internal control systems needed to be monitored. The processes that assess the quality of the system’s performance over time.

Standards  

The internal audit function of  New Jersey City University shall carry out its duties and responsibilities in accordance with the Institute of Internal Auditor’s Standards for the Professional Practice of Internal Auditing and its Code of Ethics.

Professional Proficiency

Internal Audit evaluations require proficiency and due professional care. As such, the Standards for the Professional Practice of Internal Auditing promulgated by the Institute of Internal Auditors will be used in the planning and execution of the Internal Audit function

Scope of Work

The scope of internal audit procedures includes the risk based examination and evaluation of the adequacy and effectiveness the University’s system of internal control; evaluation of compliance with applicable policies and procedures and the evaluation of compliance with applicable laws and regulations. All organizations and programs, directly or indirectly managed by the University are subject to review by the internal auditor.

Procedures

The internal auditor will develop a formally approved audit plan for the areas of audit and will perform the following procedures:

1. Conduct a pre-audit conference (including options for Zoom/Teams or any other online platform) meetings with the appropriate vice president, dean, director, or department head of the area selected for audit. The information obtained from this session (or sessions) contributes to the development of the Audit Plan (which may be subject to change throughout the course of the audit).
2. During the beginning phase of the audit, relevant policies and procedures, regulations and any other appropriate standards may also be reviewed.
3. Perform an audit review based on the formal audit procedures developed for the area or department under review. 
4. At the conclusion of the audit a draft report will be prepared.
5. The draft report will be presented to the appropriate vice president, dean, director, or department head of the area under audit for review with the internal auditor.
6. Prepare a final audit report including responses of corrective actions to be taken.
7. Prepare periodic summary reports of audits performed. The summary will include a Recommendation Follow-up Matrix, which will serve as a tool to track audit recommendations until final resolution

Periodically the internal auditor will perform unscheduled reviews of certain activities. In these instances, a scheduled pre-audit meeting will not be conducted. These assignments are usually in response to a request from the President of the Finance and Audit Committee Chair. The internal auditor will arrive at the audit location on an unannounced basis. The Annual Audit Plan will be updated to reflect the additional assignments.

Authority

The Director of Internal Audit reports operationally to the Executive Vice President, and University Counsel and maintains a direct line to the President and the Chair of the Finance and Audit Committee of the Board of Trustees.

To carry out its duties and responsibilities, the Internal Auditor has full, free, and unrestricted access to all relevant University activities, records, property, and associates. Internal audit has no authority or responsibility for the activities evaluated. Internal audit may not have any organizational relationships, duties or operating responsibilities that impair objectivity.

Code of Ethics

Internal Auditors adhere to the Code of Ethics as per the Institute of Internal Auditors.

Employee Reporting Line

New Jersey City University has engaged a third-party vendor, In2Vate, to provide employee reporting line services. In2Vate provides University employees with a toll-free and online system to report allegations of wrongdoing, which can include potential ethical violations. Effective January 2023, In2Vate will undergo a corporate change and will be doing business as I-Learning Engines. Additional information will be provided to members of the University community in the new year. In the interim, employees may continue to use the following for reporting allegations of wrongdoing:

1-800-576-5262
Code: 30092

Or

Visit Online 
Code 30092