Audit & Tax
Types of Audits
Internal Audits — The CSU System has an internal audit office, the Office of the University Auditor (OUA) in Long Beach. <http://www.calstate.edu/audit/>
Routine periodic audits from the OUA include:
- Financial Integrity and State Manager’s Accountability Act (FISMA) — Biennial, review of fiscal compliance and internal controls.
- Auxiliary Organizations — Every 3 years.
- Subject audits — Determined by the Board of Trustees annually.
- Construction audits — As construction projects are completed.
Compliance Audits — Review whether all applicable laws, regulations, policies, and procedures are followed. CSU campuses are subject to:
1. Federal, State, and local government laws and regulations; including the:
- Internal Revenue Code
- California Education Code
- State Administrative Manual (SAM)
- State University Administrative Manual (SUAM)
2. Resolutions and policies established by the CSU Board of Trustees
3. Executive Orders issued by the Chancellor
4. Policies and directives issued by the Chancellor’s Office, usually in the form of coded memos
5. Campus policies and procedures
Operational or Performance Audits— Examine whether the organization is using available resources in the most effective, efficient, and economical manner to achieve the unit’s mission and objectives. This can include looking at whether good business practices and internal controls are followed, and whether operations or programs are carried out in accordance with established goals and plans.
Financial Audits — Examine the accounting and reporting of financial transactions. The auditor reviews controls over the receipt and disbursement of funds, the safeguarding of assets, and the recording of transactions in accordance with Generally Accepted Accounting Principles, or GAAP.
Investigations — Are conducted when there is a suspicion or allegation of fraud, theft, waste, or other “improper governmental activities.” Investigations involve the examination of records and interviews of employees to determine if improper activities have taken place.