1.

Mission and Scope of Operations

The mission of the internal audit function is to provide independent, objective assurance and
consulting services intended to add value to the Universitys operations.
The internal audit functions scope of operations is by its very nature quite expansive. The internal
audit function assists the University in fulfilling its vision, mission, strategic initiatives, and objectives,
while adhering to its core values, by bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of enterprise-wide risk management, internal control systems, and
governance processes.
Ultimately, the internal audit function helps ensure:

Risks are appropriately identified and managed.

Significant financial, managerial, and operating information is accurate, reliable, and timely.

University resources are used efficiently and adequately safeguarded.

University operations are transacted in accordance with sufficient internal controls, good
business judgment, and high ethical standards.

Quality and continuous improvement are fostered in the Universitys internal control
processes.

Opportunities for improving the Universitys internal controls may be identified during internal audits;
these opportunities will be communicated to the Audit Committee of the Board of Trustees, the
President, and other appropriate members of University management.

2. Accountability
The Director of Internal Audit and Tax Compliance shall be directly accountable to the Audit
Committee of the Board of Trustees to:

Provide from time to time an assessment on the adequacy and effectiveness of the
Universitys processes for controlling its activities and managing its risks on an enterprise-wide
basis.

Report significant issues related to the processes for controlling the activities of the
University.

Periodically provide information on the status and results of the Annual Internal Audit Plan
and the sufficiency of the internal audit functions resources.

Coordinate with other control and monitoring functions of the University where appropriate.

3. Independence
Independence is absolutely essential to the effectiveness of the internal audit function. To provide for
the independence of the internal audit function, the Director of Internal Audit and Tax Compliance
shall report functionally to the Audit Committee of the Board of Trustees and administratively to the
President Moreover, the Director of Internal Audit and Tax Compliance shall meet with the Audit

Committee of the Board of Trustees periodically to report his plans for internal audit activity, the
results of completed internal audit activity, and to provide any other information or assistance which
the Audit Committee of the Board of Trustees may require from time to time. In addition, the Director
of Internal Audit and Tax Compliance shall have direct access at all times to the President and the
Audit Committee of the Board of Trustees should matters of immediate significance arise which
require their attention.

4. Authority
Internal audit coverage is by necessity enterprise-wide and no function, activity, department, or unit
of the University is exempt from audit and review. The Director of Internal Audit and Tax Compliance,
and anyone engaged or acting on his behalf, is hereby duly authorized without limitation by the Audit
Committee of the Board of Trustees to:

Have free, full, unrestricted, and unfettered access to all University functions, records,
property, activities, manual and automated systems, and personnel.

Have free, full, unrestricted, and unfettered access to all third-party institutions,
organizations, and individuals who have business dealings with the University.

Have free, full, unrestricted, and unfettered access to the Audit Committee of the Board of
Trustees and the President.

Allocate resources, set frequencies, select subjects, determine scopes of work, and apply
appropriate techniques required to accomplish the internal audit functions objectives.

Obtain the necessary assistance of personnel in functions, departments, and/or units of the
University where audits are performed, as well as other specialized services from within or
outside the University.

The Director of Internal Audit and Tax Compliance, and anyone engaged or acting on his behalf, is
hereby expressly prohibited from:

Performing any financial or operational duties for the University.

Initiating or approving accounting transactions external to the internal audit function.

Directing University personnel to change work methods or take corrective action in response
to audit suggestions; acceptance of audit suggestions is the responsibility of University
management.

Notwithstanding the foregoing, it is hereby expressly noted that the Director of Internal Audit and Tax
Compliance serves the University in a dual role as both its chief internal auditor and chief tax
compliance officer. Accordingly, nothing in this Internal Audit Charter shall be construed in any
manner which would inhibit the Director of Internal Audit and Tax Compliance from performing his
assigned duties.

5. Standards of Audit Practice

The Director of Internal Audit and Tax Compliance shall at all times conduct all internal audits in
accordance with the International Standards for the Professional Practice of Internal Auditing
adopted by The Institute of Internal Auditors; these standards are hereby specifically incorporated by
reference. Furthermore, it is specifically acknowledged that the International Standards for the
Professional Practice of Internal Auditing may change from time to time; the Director of Internal Audit
and Tax Compliance shall adhere to the most recently adopted version of these standards available
at www.theiia.org.

6. Code of Ethics
The Director of Internal Audit and Tax Compliance shall at all times meet or exceed the ethical
standards delineated by The Institute of Internal Auditors in its Code of Ethics; this code is hereby
specifically incorporated by reference. Furthermore, it is specifically acknowledged that the Code of
Ethics may change from time to time; the Director of Internal Audit and Tax Compliance shall adhere
to the most recently adopted version of this code which is available at www.theiia.org.