ERIC Number: ED412789
Record Type: RIE
Publication Date: 1996
Reference Count: 0
The Audit Committee. Effective Committees. Board Basics.
Ostrom, John S.
Association of Governing Boards of Universities and Colleges
In many colleges and universities the responsibility of the governing board's audit committee is to arrange and oversee regular audits of financial activities, comply with donor restrictions on gifts, adhere to laws and regulations, and conform to established board policies. Membership of three to five is usually sufficient, and while the institution's financial management will attend meetings, they do so as staff support to the committee, without vote. Familiarity with financial reporting, accounting practices, and key fiscal issues in higher education are important qualities, as are common sense and independent judgment. The committee selects independent accountants to perform the annual audit, meets with auditors before the process begins to review the scope of the audit and procedures, and to review the audit findings, reviews the auditors "management letter," presents the financial statement to the full board, reviews the results of other work done by the auditors (e.g., intercollegiate athletics and pension plan audits), determines the extent to which outside auditors will rely on internal auditors' work, and oversees the institution's conflict-of-interest policy. It should meet at least twice yearly. (MSE)
Descriptors: Administrative Organization, Administrative Policy, Agency Role, College Administration, Committees, Compliance (Legal), Conflict of Interest, Donors, Educational Finance, Financial Audits, Financial Policy, Fund Raising, Governance, Governing Boards, Group Membership, Higher Education, Meetings
Association of Governing Boards of Universities and Colleges. 1133 20th Street NW Suite 300, Washington, DC 20036. Tel: 800-356-6317; Tel: 202-296-8400; Fax: 202-223-7053; Web site: http://www.agb.org
Publication Type: Guides - Non-Classroom
Education Level: N/A
Audience: Administrators; Policymakers; Practitioners
Authoring Institution: Association of Governing Boards of Universities and Colleges, Washington, DC.