Risk-based Audits:

It is the policy of the Finance and Audit Committee of the Board of Visitors and the management of Virginia Polytechnic Institute and State University to support the maintenance of an internal audit function to assist in the effective discharge of their responsibilities for the control of institutional resources. The objective of these audits is to contribute to the improvement of risk management and the control systems within the University by identifying and evaluating exposures to business risks and the controls designed by management to reduce those risks.

Internal Audit will perform audits of all University operations and activities to appraise:

    • The reliability, integrity, and timeliness of significant financial, managerial, and operating information
      and the adequacy of the internal controls employed over the compilation and reporting of such information
    • Compliance with policies, procedures, standards, laws, and regulations
    • Measures taken to safeguard assets, including tests of existence and ownership
    • The adequacy, propriety, and cost-effectiveness of accounting, financial, and other controls throughout the
      University, as well as compliance therewith
    • Whether University resources are being managed in an economical, efficient, and effective manner

The audit plan for fiscal 2010 includes the following engagements:

Audit	Projected Start (FY Quarter)	Projected BoV Meeting
Athletic Department - Operations	2nd Quarter	March
Virginia Bioinformatics Institute	2nd Quarter	March
Environmental Health & Safety	2nd Quarter	March
Learning Technologies	2nd Quarter	March
Macromolecules & Interfaces Institute	2nd Quarter	March
Information Technology Security Office	2nd Quarter	March
Office of Sponsored Programs - Pre-Award	2nd Quarter	March
Department of Chemistry	3rd Quarter	June
Scholarships and Financial Aid	3rd Quarter	June
Dining Services	3rd Quarter	June
Emergency Preparedness - Action Plans	3rd Quarter	June
Construction Project Management Process	3rd Quarter	June
Network Infrastructure System Support	3rd Quarter	June
Electronic Sensitive Data	3rd Quarter	June
Departmental Scholarships/Foundation	3rd Quarter	August
University Unions & Student Activities	3rd Quarter	August
Cooperative Extension	3rd Quarter	August
Investment & Debt Management	4th Quarter	June
Secure Enterprise Technology Initiatives	4th Quarter	August
Surplus Property Compliance	4th Quarter	August
Leave Accounting	4th Quarter	August

Compliance Reviews:

In order to provide the Finance and Audit Committee of the Board of Visitors and Executive Management with a clear picture of university-wide business practices and compliance with key university fiscal and administrative policies, Internal Audit began performing an ongoing series of compliance reviews in fiscal 2004. Audit has concluded that the reviews are most effectively conducted and reported at the senior management (i.e., Deans, Vice Presidents) level. It is at this level where the authority and resources reside to make compliance and good business practices a priority. There are approximately twenty-five senior management areas identified in the University’s financial system, and each will be reviewed at least once during every five-year cycle. The ultimate objective of the reviews is to contribute to the improvement of risk management and the control systems within the various senior management areas by evaluating compliance with the following university policies and procedures:

    • Fiscal responsibility and reconciliation of financial activities (Policy No. 3100)
    • Employee compensation and leave (Policy Nos. 4296, 4298, 4300, and 4320)
    • Expenditures (Policy No. 3200)
    • Fixed asset management (Policy No. 3950)
    • Funds handling procedures (Policy No. 3600 and University Bursar procedures)
    • Access and key control (Policy No. 5620)
    • Information Technology Security (Policy Nos. 1060, 7010, and 7105)

The compliance review plan for fiscal 2010 includes the following senior management areas:

Senior Management Area	Projected Start (FY Quarter)	Projected BoV Meeting
Vice President for Alumni Relations	2nd Quarter	March
College of Business	2nd Quarter	March
College of Science	3rd Quarter	June
Vice President & Dean for Undergraduate Education	4th Quarter	August
Vice President for Administrative Services	4th Quarter	August