USC INTERNAL AUDIT POLICIES AND PROCEDURES

1. Office Policies and Procedures
2. Computer Policies
3. Professional Standards
4. Professional Proficiency
5. Risk Assessment and Long Range Audit Plan
6. Coordinating Work With External Auditors
7. Scheduled Audits
8. Special Projects, Management Requests
9. Misuse Investigations
10. Audit Follow-up Process
11. Working Paper Documentation
12. Communicating Results
13. Confidentiality of Information

OFFICE POLICIES AND PROCEDURES

Work Planning and Performance Review

Work Planning and Performance Review will be handled in keeping with State and University policy. Each year an employee performance review plan will be developed for and discussed with each staff member. The plan will define performance expectations at the "Good" level. A development plan worksheet, identifying training goals and suggestions for improving or enhancing knowledge, skills, and abilities, will be incorporated in the plan.

Annually each staff member’s performance will be reviewed and reported as required by USC policy. This process gives the staff member and the Director an opportunity to discuss strengths, weaknesses and progress towards performance goals. Each staff member will be continuously evaluated by the director and supervisors and appropriate guidance and direction will be discussed as needed to accomplish department goals and develop professionally.

The Work Day and Leave

University policy and the nature of audit work allows some flexibility in our official work hours. Each staff member should adopt consistent work hours and note these hours on his or her timesheets. Work days may start any time between 7:00 and 8:30 AM. Staff members are allowed up to one hour for a lunch break. While there is no official lunch hour for the department, staff members should arrange their lunch schedules to ensure that someone will be present to respond to telephone calls or visitors to the Internal Audit Office. Each staff member must work or take leave for a total of 37.5 hours a week.

Requests for leave should be submitted to the Director in advance whenever possible. When an employee is out on uplanned leave, such as due to illness or adverse weather, he or she should notify the office as soon as possible. When an employee has to take annual leave or sick leave during the day they should notify the department’s administrative assistant so that the time off can be properly reported. Professional employees are expected to work as required to complete the assignments they have been given. Under special conditions, subject to advance approval by the Director, compensatory time may be granted for hours worked outside the normal day.

Break periods are not required by the Fair Labor Standards Act. However, as operational requirements permit and working conditions warrant, staff members may be allowed to take one brief break during any work period of four consecutive hours. Break periods are counted as work time.

When an employee is working outside the department office there is a sign out board in the office so that an employee can be contacted while working at an audit site or other location.

Timekeeping

The department manages its available hours based on information from a timekeeping system. Each employee should complete a timesheet for each pay period. The timesheet will be signed by the employee and should be given to the department administrative assistant to be entered into the timekeeping system and/or filed as appropriate.

In addition to the department timesheet, each employee is responsible for entering their leave taken or hours worked, as appropriate, on the University's Time and Attendance System (ITAMS). Once leave has been entered into ITAMs, it should be submitted to the Director of Internal Audit or the Assistant Director for approval. Once approved the Payroll Department will adjust leave records accordingly.

Keys and Security

All staff members will be issued keys to the department offices. These keys should be safeguarded and items that can identify the lock a key matches should not be attached to the key or key ring. In the event that an employee’s keys are lost, the Director should be notified immediately.

The Internal Audit staff is responsible for locking the office at the end of the workday. However, the last person to leave the office is responsible for checking the main office door and securing it if it is not locked.

Each staff member is responsible for locking his or her office and securing his or her files and working papers at the end of the business day. When an auditor is working in the field, he or she should take steps to safeguard working papers when they are not in the auditor’s possession. In the absence of a locking desk or file cabinet, the auditor should take the papers home at the end of the day.

Confidentiality

The Internal Audit Department frequently deals with information of a confidential nature. It is expected that all employees will treat confidential information in an appropriate manner. Breach of confidentiality is grounds for disciplinary action.

Travel

All travel associated with department business, including training, will be reimbursed in accordance with state policy.

Employees should complete the Travel Authorization Form as soon as it is known that travel will be necessary. Employees may make their own travel arrangements or may ask the department administrative assistant to assist with making the arrangements. The employee who is traveling will be provided with confirmation numbers for accommodations and ticket, including boarding passes for travel. Most in-state travel to regional campuses or conferences can be accomplished using a Blanket Travel Authorization, prepared at the beginning of each fiscal year by the department administrative assistant.

If more than one staff member is driving to the same destination at the same time, they should travel together, unless "ride-sharing" is impractical. When staff members driving to the same destination travel separately for personal convenience, only one individual will be reimbursed for mileage.

Within five business days after returning from a trip, a staff member should complete a Travel Reimbursement Voucher to obtain reimbursement for the expenses that have been incurred while on University business. The reimbursement amount will be in accordance with current University and State policy. The form should be submitted to the Director for review and approval and will then be processed by the department administrative assistant.

Professional Certifications

As outlined in the Professional Proficiency section of this manual, individuals are expected to seek professional certifications. The department is prohibited from paying for employees to take a professional exam. However, the department may pay for review courses or material, provided the auditor reviews all available alternatives and provides those alternatives to the Director for review. Employees are expected to make a good faith effort towards passing the exam if the department pays for review courses or material.

Smoking

The department office areas are designated as a non-smoking workplace. Smoking is prohibited in all department offices.

Files

Central department files are maintained by the department administrative assistant. There are two major file types:

• Audit working paper files, which are stored in three-ring binders and filed by department number and calendar year. These files are maintained for a period of 5 years at which time they will be moved to storage or shredded as determined by the Director.

• General office files which will include correspondence, departmental administrative files, personnel files, publications, and files relative to professional organizations and committees. These items are filed by department or organization and will be reviewed on an annual basis and purged as necessary.

General Office Equipment

Maintenance of general office equipment should be coordinated by the department administrative assistant. If any employee encounters a problem the administrative assistant should be notified immediately. The administrative assistant will either resolve the problem or will arrange for service.

This portion of the policies was revised 11/7/06.  Changes are in bold. 

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