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Policy
It is the policy of the University of Washington
to fully cooperate with external auditors. In the furtherance of
this objective, it is expected that auditors and University personnel
will observe certain procedures intended to facilitate orderly audits
and to minimize disruption of normal departmental operations.
These procedures are outlined in the following sections.
Procedures
1. General
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As part of the audit coordination process,
the Department of Audits serves as liaison between central
administrative offices, University departments and external
auditors. All initial contacts with external auditors should be
arranged through the University Executive Director of Audits. If
any University personnel are contacted directly by an external auditor,
they should notify the Executive Director of Audits. Appropriate
advance arrangements must be made to ensure that (1) the proper persons
are on hand to assist the external auditors, (2) relevant records are
gathered together in a timely manner, and (3) the contact is scheduled
to minimize disruption of departmental activities.
The Department of Audits will keep a record
of all correspondence, meeting minutes, and other written
communications between the external auditor and the Department of
Audits.
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2. Notification of Audit
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A. |
By the Auditor
The external auditor should send a written
notification of the upcoming audit to the Executive Director of Audits.
The written notification should include the following:
• subject area,
• scope and purpose of the audit,
• approximate start date and duration of the audit.
This will assist the University in arranging
for people and records to be available when the external auditor
requires them.
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B. |
By the Executive Director of Audits
The Executive Director of Audits will notify
the appropriate University officials regarding the scope, purpose,
schedule, and other information relevant to the upcoming audit.
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3. Entrance Conference
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The Executive Director of
Audits will coordinate an entrance conference with the appropriate
University officials and the external auditors. The objectives of
this conference are to establish the purpose, scope, and timing of the
audit or review; determine the information required by the external
auditor; and arrange the physical facilities and equipment needed to
facilitate the audit. Minutes of the meeting will be taken and
made available to the external auditors and appropriate University
personnel. |
4. Contact During Audit
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After the entrance conference, all requests
for specific information or interviews with faculty and staff should be
coordinated through the department administrator or designated
University personnel. The Executive Director of Audits or appropriate
University personnel may accompany faculty or staff members during
interviews when deemed appropriate. The external auditor should keep
the Executive Director of Audits or designated University official
informed of any mistakes, discrepancies, or audit questions or concerns
that arise during the audit process. The purpose of such contact is to
expedite the audit and to provide additional information or clarify any
ambiguities.
For specific external groups, certain
procedures during the audit may vary from the general procedures, as
discussed below.
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A. |
Federal Auditors
After the entrance conference, all questions
and requests for specific information or interviews with employees will
be coordinated through the department administrator or appropriate
department personnel. The department administrator will obtain
the necessary documentation and will arrange for interviews. The
department administrator may directly contact the Office of Sponsored
Programs, and Grant and Contract Accounting Offices for assistance.
Program Reviews
Program reviews are often conducted to
review program operations and to determine whether the project is
meeting programmatic goals. In these cases, the program reviews
should be coordinated through the department administrator who will
obtain the necessary documentation and arrange for interviews.
However, some program reviews, such as those conducted by the U.S.
Department of Education, include a review of fiscal operations.
In these cases, the department administrator should coordinate the
review of fiscal operations with the Executive Director of Audits.
For program reviews of student financial aid, the Department of
Education may work directly through the Director of Financial Aid.
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B. |
State Auditor's Office and CPA Firms
After the entrance conference, all requests
for specific information or interviews with staff can be arranged
through the appropriate department administrator or designated
University personnel.
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5. Exit Conference
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When the audit has been
completed, the Executive Director of Audits will schedule an exit
conference. The purpose of the exit conference is to inform University
representatives of the audit findings. At this time, any
misunderstandings are clarified and unresolved financial issues
discussed. Minutes of the meeting will be taken and made available to
the external auditors and appropriate University personnel. |
6. University Records
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On a timely basis, the University will
provide external auditors with access to all records that are relevant
to the audit, except those deemed by the University to be legally
privileged or protected. Auditors should be allowed to make
copies of documents as necessary, but should not be permitted to take
original documents out of the office. Availability of records is
subject to
the University Records Retention policy, which allows destruction of
records within prescribed limits.
Records may be located in either the central
offices (Financial Services, Grant and Contract Accounting, Office of
Sponsored Programs, Payroll) or at the departments. The external
auditor must make arrangements through the appropriate department head
or administrator for the retrieval and refiling of records.
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7. Use of University Computer and
Administrative Systems
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If external auditors need to
use University computer resources or access the University
administrative systems, the auditor-in-charge should send a written
request to the Executive Director of Audits describing the need in the
most specific terms possible. Such a request should be made in advance
so that proper arrangements can be made. |
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