Internal Audit Charter

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Internal Audit Charter

This Charter establishes the authority and responsibility conferred by the Audit Committee of Council on the internal audit function, so that it may perform adequately within RMIT University ("the University").

Role

Independence

Authorities

Program

Activities

Relationships

Role

Internal audit is a function to assist the RMIT Council, Vice-Chancellery and other levels of management achieve sound managerial
review and control over all University activities to ensure that these activities can be carried out effectively and efficiently. The function provides the Council, Vice-Chancellery and senior University management with:

management orientated appraisals of the University's operations and activities;
independent and confidential advice on remedial action to improve the University's effectiveness, efficiency and economy in the use of resources; and
progress reports regarding remedial action taken by management.

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Independence

The internal audit function has independent status within the University and for that purpose:

shall be functionally responsible on a day to day basis to the Deputy Vice Chancellor (Resources). It will report on a quarterly basis to the Audit Committee of Council and shall have direct access to the Chancellor of the University if required;
shall have no executive or managerial powers, authorities, functions or duties except those relating to the management of the internal audit function;
shall not be responsible for the detailed development or implementation of new systems but should be consulted before such development to enable assessment of the adequacy of planned controls; and
shall not be involved in the day to day internal checking system in the University.

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Authorities

Subject to the approval by the Audit Committee of Council, the Internal Audit Group shall:

conduct audits in accordance with the approved internal audit program; (refer to next section)
at all reasonable times, have access to relevant information and property of the University; and
at all reasonable times have relevant discussions with managers and staff of the University.

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Program

In consultation with the Deputy Vice Chancellor (Resources) and other senior managers, the Director, Internal Audit shall recommend a forward program of audits for approval by the Audit Committee.

Audit programs shall be sufficiently comprehensive to ensure the effective and regular review of all facets of the University's operations over a planned cycle.

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Activities

The Director, Internal Audit shall report the results of audits to relevant University management at the conclusion of each audit project.
A copy of the report will also be provided to the Deputy Vice Chancellor (Resources). The Director, Internal Audit shall also provide quarterly summary reports to the Audit Committee of Council.

The Internal Audit Group shall appraise the effectiveness of the University's discharge of the functions and duties conferred upon it and to this end shall:

review systems and operations to assess the extent to which the University's objectives are achieved, and the adequacy of the controls over activities leading to such achievement;
assess the relevance, reliability, timeliness and adequacy of management data;
appraise expenditure with regard to "value for money";
ascertain the extent of compliance with established policies, plans and procedures;
recommend improvements in procedures and systems to prevent waste, extravagance and loss;
advise on appropriate systems of control and other accounting and other operational matters in a consulting capacity;
draw attention to any failure to take remedial action; and
carry out ad hoc appraisals, inspections, investigations, examinations or reviews that may be requested by the Deputy Vice-Chancellor (Resources) or Audit Committee from time to time.

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Relationships

The Internal Audit Group has an independent reporting status within the University. Internal Audit reports quarterly to the Audit Committee of Council on the results of the completed audits and has access to the Chancellor of the University if required. Internal
Audit is located within the Resources Division.

They maintain contact with other specialist groups within the University to assist line management.

The Internal Audit Group liaises and co-operates with the University's external auditors and co-ordinates the University's continuous
audit requirements.

(Approved by RMIT Council on 28 September 1992)

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