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This Charter describes the mission, commitment, authority, independence, accountability, and principal responsibilities of Audit Services and Institute Compliance.
MISSION
ASIC’s mission is to proactively
partner with management, faculty, and staff to ensure the Campus, the Jet
Propulsion Laboratory, and the other Caltech operations effectively:
- Identify and manage
risks;
- Comply with all
applicable laws, regulations, contract/grant provisions, and internal
policies, plans, and procedures;
- Maintain financial and
operational integrity;
- Establish and maintain
an appropriate control environment, level of accountability, and ethical
framework; and
- Monitor and improve
processes.
COMMITMENT
ASIC is committed to:
- Developing and maintaining
positive and collaborative relationships with Institute employees and other
stakeholders.
- Developing risk-based
audit and compliance plans aligned with the Institute’s goals and
objectives.
- Providing high-quality and
timely services and advice by maintaining a professional staff with
appropriate knowledge, skills, experience, and certifications.
- Maintaining a
team-oriented work environment that provides meaningful and challenging
assignments, recognizes and rewards outstanding performance, and develops
leaders for the Institute.
- Utilizing, when necessary,
external resources in a cost-effective manner.
- Coordinating efforts with
Institute and other stakeholder control and monitoring functions (i.e. risk
management, safety, security, general counsel, ethics, environmental,
external audit, etc.).
AUTHORITY
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ASIC activities are
governed by policies established by the Board of Trustees through its
Audit and Compliance Committee and the President. The scope of ASIC
activities is subject to Audit and Compliance Committee review but is
not otherwise restricted.
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To be effective, it is
essential there be mutual cooperation between management, faculty,
staff, and ASIC. ASIC, with stringent regard for information
safekeeping and confidentiality, and subject to applicable Institute
policies, will have access to all Institute activities, records,
property, and employees as may be necessary to fulfill its
responsibilities.
INDEPENDENCE
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The Director of ASIC
reports directly to the Audit and Compliance Committee, the President, and
the Vice President of Business and Finance.
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ASIC staff has no authority
over, or responsibility for, the activities they audit, review, or monitor.
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In addition, ASIC personnel
will not participate in any activity that may compromise their independence
or objectivity.
ACCOUNTABILITY
The Director of ASIC is
accountable for:
- Providing annual
assessments on the adequacy and effectiveness of the Institute’s
processes for controlling its activities and accomplishing its mission.
- Reporting on
significant issues relating to control, accountability, or other
processes of the Institute, including potential improvements to those
processes and resolution of such issues.
- Providing information
on the status and results of the audit and compliance plans and the
sufficiency of department resources.
- Establishing
appropriate ASIC metrics and reporting results.
 AUDIT
SERVICES
ASIC conducts financial,
operational, and information technology audits in accordance with approved
plans and its established policies and procedures. In addition, ASIC
complies with the Code of Ethics and the International
Standards for the Professional Practice of Internal Auditing
promulgated by The Institute of Internal Auditors, as well as other
professional auditing standards which may be applicable to the performance
of work assignments.
Audit services include, but are
not limited to:
- Developing and
implementing an annual audit plan using an appropriate risk-based
methodology, including topics identified by management and other
stakeholders.
- Considering the scope
of work of external auditors and regulators, as appropriate, for the
purpose of providing optimal audit coverage to the Institute at a
reasonable overall cost.
- Examining and
evaluating the adequacy and effectiveness of the Institute’s systems of
internal control.
- Evaluating and
assessing new or changing services, processes, operations, and controls
coincident with development and implementation.
- Identifying
opportunities for reducing costs, improving processes, or enhancing the
Institute’s reputation.
- Reviewing the
reliability and integrity of financial and operating information and the
means used to identify, measure, classify, and report such information.
- In conjunction with
the Office of General Counsel, assessing compliance with laws,
regulations, contract/grant provisions, and internal policies, plans,
and procedures.
- Verifying that
resources are acquired economically, used efficiently, accounted for
accurately, and protected adequately.
- Reviewing operations
or programs to ascertain whether results are consistent with established
objectives.
- Assisting in the
investigation of suspected irregular conduct in conjunction with other
Institute resources.
- Evaluating emerging
audit trends and implementing best practices.
COMPLIANCE SERVICES
ASIC’s Compliance Program reflects
the Institute’s commitment to the highest standards in all of its
activities. The program provides an operational framework to ensure
compliance is an integral part of the Institute’s culture. ASIC
proactively helps management, faculty, and staff identify and reduce risks
which could adversely affect the Institute.
The Director of ASIC serves as the
Institute Compliance Officer. He interacts with the Office of General
Counsel, seeking advice and counsel on matters that involve legal issues.
Compliance services include, but
are not limited to:
- Developing and
implementing an annual risk-based compliance plan.
- Serving as a resource
in developing or improving compliance related processes.
- Assisting in the
development of Institute policies or practices to help ensure compliance
with Federal, State and Local laws and regulations, and contract/grant
provisions.
- Facilitating the
establishment of appropriate compliance committees and coordinating
Institute-wide compliance activities with such committees or designated
liaison personnel.
- Assisting in the
development and delivery of compliance related training.
- Promoting compliance
awareness.
- Providing compliance
advisory services to management, faculty, and staff.
- Evaluating emerging
compliance trends in higher education and government and implementing
best practices.
- Administering a
Compliance Helpline, in conjunction with the Office of General Counsel,
that provides the Campus community with a mechanism to obtain advice and
report behavior that may jeopardize the integrity of the Institute.
____________________________________________________
Chairman, Board of Trustees
Audit and Compliance Committee
Ronald K. Linde
____________________________________________________
President
David Baltimore
____________________________________________________
Vice President for Business
and Finance
Dean W. Currie
____________________________________________________
Director, Audit Services
and Institute Compliance
D. Richard Moyer
Dated
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