Washington County Health System, Inc.
Internal Audit Charter
Internal Audit at Washington County Health System, Inc. (the “Health System”) is an
independent appraisal activity established for the review of accounting, financial, and
operating activities as a service to management and the Audit and Business Integrity
Committee (the “Committee”) of the Health System Board. It is the policy of the Health
System to maintain an internal audit function as an integral component of the internal
control environment. This charter sets forth Internal Audit’s purpose, authority, and
responsibilities, as approved by the Committee.
I. Purpose
To assist management in the effective discharge of its responsibilities by providing impartial
analyses, appraisals, recommendations, and pertinent comments on:
A. The adequacy of accounting, financial and operating controls.
B. The efficiency and effectiveness of uses of the Health System’s resources.
C. The reliability of information provided to management.
D. Compliance with established policies and procedures.
E. The presence of or possibility of potential matters of business risk, fraud,
theft, mismanagement and other similar matters.
F. Other matters at the direction of management and the Committee when and
as they arise.
II. Authority
The Internal Auditor is accountable, functionally, directly to the Committee of the Board of
Trustees and administratively, directly to the President and Chief Executive Officer of the
Health System. All areas and phases of the Health System’s business and that of its
subsidiaries, to include all documents, papers and records pertinent thereto, without
exception, are subject to examination by the Internal Auditor. The Internal Auditor is
authorized complete and unrestricted access to all records, personnel and properties of the
Health System and its subsidiaries relevant to the performance of audits. However, Internal
Audit has no authority over or responsibility for, the activities they audit. Employees of the
Health System may not restrict the activities of the Internal Auditor in any manner.
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III. Independence
Independence and objectivity are essential to the effectiveness of the Internal Audit
function. Internal Audit is a staff function and as such does not exercise direct authority
over other persons and departments whose work is reviewed. While the Internal Auditor is
free to review and appraise polices, plans, procedures, and resources, the auditor’s review
does not in any way relieve other persons in the organization of the responsibilities assigned
to them.
The Internal Auditor’s objectivity is not adversely affected, nor is the department requesting
it negatively viewed, when the auditor recommends internal controls or reviews procedures
before they are implemented. Moreover, Internal Audit has the responsibility and authority
to recommend necessary improvements and to follow auditee’s progress toward
implementing appropriate improvements.
IV. Responsibilities
The establishment and maintenance of acceptable business practices and adequate and
effective internal controls is the responsibility of management. To assist management in
carrying out this responsibility, Internal Audit reviews and evaluates business practices and
systems of internal control, reports to management any identified weaknesses together with
recommendations for improvements, and follows the progress of corrective actions.
The internal audit activity has responsibility to:
A. Develop flexible long-range and annual audit plans based on an assessment
of risks and special requests by management and/or the Committee, and
submit that plan to the Committee for review and approval as well as
periodic updates
B. Implement the annual audit plan, as approved, including as appropriate any
special tasks or projects requested by management and the Committee.
C. Report to the Committee quarterly or more often if necessary, to summarize
audits conducted during the previous quarter and to discuss the audit plans
and priorities for the ensuing quarter.
D. Keep the Committee informed of emerging trends and successful practices in
internal auditing.
E. Provide a list of significant measurement goals and results to the Committee.
F. Assist in the investigation of significant suspected fraudulent activities within
the organization and notify management and the Audit Committee of the
results.
G. Consider the scope of work of the external auditors and regulators, as
appropriate, for the purpose of providing optimal audit coverage to the
organization at a reasonable overall cost.
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V. Audit Standards and Ethics
Audit work shall be performed in accordance with Generally Accepted Auditing
Standards as advocated by the Institute of Internal Auditors in Standards for the
Professional Practice of Internal Auditing and the American Institute of Certified
Public Accountants in Statements on Auditing Standards.
The Internal Auditor has the responsibility to maintain high standards of conduct,
independence and character to carry on proper and meaningful internal auditing
within the Health System. In addition, the Internal Auditor’s activities and conduct
shall be consistent with the policies of the Health System.
VI. Approval Section
_________________________________________
Internal Auditor
__________________
Date
_________________________________________
President/CEO
__________________
Date
_________________________________________
Audit Committee Chair
__________________
Date
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