Administrative Manual - 800 Internal Audit
800 Internal Audit
- STATEMENT OF AUTHORITY AND RESPONSIBILITY
The Internal Audit Office is authorized to perform a broad, comprehensive program of internal auditing within JSA. Internal auditing examines and evaluates the adequacy and effectiveness of the system of management control provided by JSA to direct its activities toward accomplishment of its objectives in accordance with JSA policies and organizational goals.
In accomplishing these activities, JSA's Audit Committee states its authorization and support, clearly and categorically, that the Office of Internal Audit will have full, free, and unrestricted access to all JSA functions, records, property, and personnel at reasonable and mutually convenient times.
The Internal Audit Office is responsible for:
- Developing and executing a comprehensive audit program for the evaluation of management controls provided for JSA activities.
- Examining the effectiveness of all levels of management in custody of JSA resources and their compliance with established policies and procedures.
- Recommending improvement of management controls designed to safeguard JSA resources, promote JSA goals, and ensure performance consistent with government laws and regulations.
- Reviewing procedures and records for their adequacy to accomplish stated and intended objectives, and appraising policies and plans relating to the activity or function under audit review.
- Authorizing the publication of reports on the results of audit examinations, including recommendations for improvement.
- Appraising the adequacy of the action taken by management in response to reported control weaknesses and opportunities for improvement.
- Conducting special examinations at the request of management, including the reviews or representations made by persons outside of JSA.
- It is the policy of JSA to establish and support an Internal Audit Office as an independent appraisal function to examine and evaluate JSA activities as a service to management of JSA.
- The Internal Audit Office reports organizationally to the President of JSA and functionally to the Audit Committee.
- In carrying out internal audit assignments, the Internal Audit Office will have full, free, and unrestricted access to all JSA activities, records, property and personnel.
In alignment with the overall goals of the organization, the mission of the Internal Audit Office is to add value to overall organizational performance by providing quality auditing services that result in reduced costs, gains in operational efficiencies, strengthened internal controls, and improved laboratory and corporate policy. To achieve these goals, on a risk-based strategy, the Internal Audit Office performs independent reviews and reports on the effectiveness of management controls and operational performance throughout JSA.
The primary objective of the Internal Audit Office is to assist members of JSA management in the effective discharge of their responsibilities. To this end, the Internal Audit Office will furnish them with analyses, recommendations, counsel, and information concerning the activities reviewed.
The specific objectives of the Internal Audit Office are as follows:
- Review organizations within JSA at appropriate intervals to determine whether they are efficiently carrying out their functions of planning, organizing, directing, and controlling in accordance with management instructions, policies, procedures, and in a manner that is consistent with JSA's mission and high standards of management performance.
- Determine the adequacy and effectiveness of JSA's systems of internal accounting and operational controls.
- Review the reliability and integrity of financial information and the means used to identify, measure, classify, and report such information.
- Review the established systems to ensure performance consistent with applicable policies, plans, procedures, laws, and regulations which could have a significant impact on operations and reports, and determine whether the entity is in compliance. Recommend policy where appropriate.
- Review the controls of safeguarding assets, and as appropriate, verify the existence of such assets.
- Appraise the economy and efficiency with which resources are allocated and utilized, identify areas of opportunity where operating performance could be improved, and recommend solutions to control weaknesses where appropriate.
- Review operations to ascertain whether results are consistent with established objectives.
- Coordinate audit efforts with JSA's external auditors.
- Submit annual audit plans to the Audit Committee for their review and approval.
- Report periodically, but no less than annually, to the Audit Committee on whether:
- Appropriate action has been taken on significant audit comments and recommendations.
- Audit activities have been directed toward the highest exposure to risk and toward increasing efficiency, economy, and effectiveness of operations.
- Internal and external audits are coordinated to avoid duplications of effort.
- Annual internal audit plan is adequate and on schedule.
- There is any unwarranted restriction on the authority of the internal auditor or on access to JSA activities, records, property, or personnel.
- Report to appropriate management the results of audit examination, the audit opinions rendered, and the recommendations made.
- Evaluate all management plans and actions taken with respect to audit comments and recommendations. If the response is viewed as ineffective or unsatisfactory, pursue discussion until settlement is acceptable.
- Provide adequate follow-up to ensure stated corrective action is implemented and effective.
- Assist JSA management in strategic planning through participation in the analysis of corporate and programmatic risks and vulnerabilities.
- Perform other such duties and responsibilities as may be deemed appropriate by the President of JSA in support of JSA's goals and objectives.
- MANAGEMENT RESPONSE
The respective Associate Director or JSA manager of the audited operating unit is responsible for assessing recommended corrective action on reported weaknesses and determining, within 30 days from receipt of an audit report disclosing those weaknesses, whether such action should be either planned or taken. The respective Associate Director or JSA manager is also responsible for responding in a written report directly to the JSA Audit Committee. The written report should detail the Associate Director or JSA manager three step action plan to correct the weaknesses. Specifically, the Associate Director or JSA manager action plan should identify:
- What will be done,
- When will it be accomplished, and
- Who will be responsible for accomplishing the action.