Introduction
This charter sets forth the framework within which the Charitable
Bingo Operations Division- Audit department will operate to conduct audits.
Role
The Audit Department (Audit) is established within the Charitable
Bingo Operations Division, and will perform its duties consistent with the Division’s regulatory
objective. Its responsibilities are an integral part of the Division’s statutory charge to
provide strict control and close supervision over bingo conducted in the state so that bingo is
fairly conducted and the proceeds from bingo are used for an authorized purpose.
Professional Standards
Audit will conduct audit activities in accordance with
professional standards set forth in the Bingo Audit Methodology and Standards Handbook which
provides a framework for performing high-quality audit work with competence, integrity,
objectivity, and independence. Audit will conform to all policies and procedures of the Texas
Lottery Commission.
Organizational Structure
Audit shall report directly to the Charitable Bingo Operations
Division Director.
Independence
All audit activities shall remain free of influence by any element
in the organization or licensee, including matters of audit selection, scope, procedures,
frequency, timing, or report content to permit maintenance of an independent and objective mental
attitude necessary in performing audit activities.
Auditors shall have no direct operational responsibility or
authority over any of the activities they review. Accordingly, they shall not develop nor
install systems or procedures, prepare records, or engage in any other activity which would
normally be audited.
Access to Records
Members of the Audit Department shall have unrestricted access
to all licensee management and staff including volunteers and all records that are relevant to the
designated scope and objectives of the engagement.
Scope of Activities
The scope of activities conducted by Audit encompasses the
examination and evaluation of the adequacy and effectiveness of the licensees’ compliance with the
Bingo Enabling Act and the Charitable Bingo Administrative Rules.
Audit Planning
The Audit Manager shall submit to the Charitable Bingo Operations
Division Director an annual audit plan and risk assessment to include a summary of the audit work
schedule and staffing plan for the year. Any significant deviation from the formally
approved annual audit plan shall be communicated to and approved by the Charitable Bingo Operations
Division Director.
Reporting
A final, written report will be prepared and issued by the Audit
Manager following the conclusion of each audit and will be provided to the auditee and distributed
as appropriate. A copy of each audit report will be forwarded to the Charitable Bingo
Operations Division Director for the Determination Process to consider appropriate administrative
penalties and actions that may include revocation of license.
The audit report will provide for the auditee’s response and
corrective action taken or to be taken in regard to the specific findings and recommendation, if
applicable. The auditee’s response should include agreement or disagreement with the findings
and recommendations, and the timetable for anticipated completion of action to be taken and an
explanation for any recommendations not addressed.
Audit may conduct appropriate follow-up on audit findings and
recommendations as warranted.
Quality Assurance
Audit will maintain an effective quality assurance review process
to include adequate supervision, training and internal quality review to ensure compliance with
agency policies, procedures and professional standards set forth in the Bingo Audit Methodology and
Standards Handbook.
Periodic Assessment of Charter
This charter will be reviewed periodically by the Charitable Bingo
Operations Director and Audit Manager to assess the continued adequacy and recommend changes if
needed.
