Audit Governance

Oversight

A unique three-element oversight/reporting structure has been developed to ensure and support the effectiveness and independence of the internal audit function:

1. Functional Oversight – the UT System Board of Regents’ Audit, Compliance, and Risk Management Committee (ACRMC) and the Institutional Audit Committee (IAC) provide strategic oversight and direction of all internal audit activities.
2. Institutional Oversight – the president manages the operational and administrative matters of internal audit, including performance evaluation of the chief audit executive. Employment and termination of the chief audit executive by the president must have concurrence from the ACRMC chairman.
3. Professional Oversight – the UT System chief audit executive provides oversight and support related to conformance with professional standards, promulgates guidance to ensure a consistent, systemwide approach to internal audit activities, and provides advice to the ACRMC chairman during employment and termination decisions of the institutional chief audit executive.

Membership of the IAC is determined by the president and includes key members of senior management and at least three external members selected by the president.  The IAC meets quarterly and as determined necessary by the president or IAC members.

External Oversight

The Texas Internal Auditing Act (Texas Government Code, Chapter 2102) requires certain state agencies and higher education institutions to submit an annual report of audit activities and provide copies of audit reports to the Governor’s Office, the Legislative Budget Board, and the State Auditor’s Office.