21 Independent Audit

Policy Statement (Board Approval Date:  03/22/11)

In compliance with the requirements of 70 O.S. 2001, § 3909 the MSC Board audit policy is as follows:

College financial records are audited annually by professional auditors selected by the Board.  Internal audits are conducted on a quarterly basis and will be performed by a different firm than the annual audit. The Board appoints an audit committee consisting of the President and Board Chair and no fewer than three Board members.

Procedure

1. The responsibilities of the audit committee include, but are not limited to, the following:
   1. Establish the scope of work in issuing requests for proposals from independent auditing firms.
   2. Review proposals for independent audit services and related professional fees, and make recommendations to the Regents for the employment of an auditor.
   3. Review annual audits of the institution and the MSC Foundation with the President, and make reports and recommendations to the full Board.  The reviews should include timely discussions with the independent auditor regarding all critical accounting policies and practices; all alternative treatments of financial information with the Generally Accepted Accounting Principles that have been discussed with management, ramifications of the use of such alternative disclosure and treatments, and the treatment preferred by the independent auditor; and other material written communications between the independent auditor and management, including the management letter.
   4. Review performance of the independent auditor and professional fees, and recommend continuation or removal, if appropriate.
   5. Resolve any disagreements between the independent auditor and employees, and review any audit problems or difficulties and employee responses.
   6. Establish and maintain procedures for the receipt, retention, and treatment of complaints regarding accounting, internal accounting, or auditing matters.
   7. Establish and maintain procedures for the submission by employees regarding questionable accounting or auditing matters that will assure protection of the employee in accordance with the provisions of 74 O.S. 2001, § 840-2.5.
   8. Establish an approval process for utilization of the institution’s independent auditor for non-audit services, including specific verification of the absence of conflict of interest of the auditor in the performance of the related non-audit services.
   9. Facilitate coordination with the State Auditor and Inspector as appropriate.