NUMBER:   BTRU 1.06
SECTION:  Board of Trustees   

SUBJECT:  Internal Audit                               

DATE:     February 1, 1995
                     
Policy for:     All Campuses
Procedure for:  All Campuses
Authorized by:  Thomas Stepp
Issued by:      Board of Trustees

________________________________________________________________


I.   Policy

The Internal Audit Department, which reports to the Secretary of
the Board of Trustees, functions as an independent appraiser 
of University activities.  With its primary mission to assist 
members of management, the administration and the Board of
Trustees in the effective discharge of their responsibilities,
Internal Audit prepares reports, analyses, information, counsel
and recommendations for them.  

A.   Internal Audit shall have full, free 
and unrestricted access
to all of the University's activities, records, property and
personnel.  

B.   Internal Audit has no responsibility or authority over other
areas; therefore, any review or recommendation made will not
relieve supervisors of the responsibilities inherent to their
positions.  

C.   Internal Audit is charged specifically with the following
responsibilities:  

1.   review departments, functions and campuses within the
     University at appropriate intervals to determine whether
     they are carrying out efficiently and effectively their
     functions of planning, organizing, directing and controlling
     in accordance with University policy, legislative mandate or
     sound administrative practices;

2.   review the established systems to ensure compliance with
     those policies, plans, procedures, laws and regulations
     which could have a significant impact on operations and
     reports, suggesetion;
      
3.   review operations and programs to ascertain whether results
     are consistent with estab program
     proposals, awards, contracts, accountability statements and
     agency approval requests, and the authority  (including the
     authority to delegate same to an associate director) to sign
     such documents on behalf of the University of South Carolina
     System;

4.   appraise the economy and efficiency with which resources are
     employed, identify opportunities to improve operating
     performance  and recommend solutions to problems where
     appropriate; 

5.   determine the adequacy and effectiveness of the University's
     systems of internal accounting and operating controls; 

6.   review the reliability and integrity of financial
     information and the means used to identify, measure,
     classify and report such information; 

7.   review the means of safeguarding assets and, as appropriate, 
     verify the existence of such assets;

8.   coordinate audit efforts with those of the State Auditor's
     Office and all other external auditors and monitor the
     progress made to resolve audit exceptions; 

9.   submit annual audit plans to the Fiscal Policy and Executive
     Committees of the Board of Trustees for ror review of such 
     contracts in the Office of the Secretary of the Board of
     Trustees and the System Legal Department. 

10.  report to the Fiscal Policy and Executive Committees on
     whether
 
     a.   appropriate action has been taken on significant
          Internal Audit review findings and findings made by all
          external auditors;
 
     b.   Internal Audit's activities have been directed toward 
          highest exposures to risk and toward increasing
          efficiency,  economy and effectiveness of operations; 

     c.   there is any unwarranted restriction on the staffing and
          authority of the Internal Audit Department or the access by
          Internal Audit's staff to all agency activities,  records,
          property and personnel;

11.  report the results of Internal Audit's examinations, the
     opinions formed and the recommendations made to those
     members of management who should be informed or who should
     take corrective action; 

12.  evaluate any plans or actions taken to correct reported
     conditions and, if the corrective actions are considered
     unsatisfactory, hold further discussion to achieve
     acceptable disposition; 

13.  provide adequate follow-up to make sure that effective
     corrective action is taken.  

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URL http://www.sc.edu/policies/btru106.html