Introduction:
This charter sets forth the framework within which the Audit Services
Department will operate to conduct audits.
Role:
The Audit Services Department (Audit Services) 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 Services will conduct audit activities in accordance with
generally accepted government auditing standards promulgated by the U.S. Government Accountability
Office. Audit Services will conform to all policies and procedures of the Texas Lottery
Commission.
In accordance with generally accepted government auditing standards,
all audit staff members will receive a minimum of 40 hours of continuing professional education
each year. Staff members that are certified may be subject to additional requirements as
established by the governing boards which regulate those certifications.
Organizational Structure:
Audit Services shall report directly to the Charitable Bingo
Operations Division Director.
Independence:
All Audit Services 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.
Scope of Activities:
The scope of activities conducted by Audit Services 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. Consideration will be given
to Charitable Bingo Operations Division’s statutory and regulatory objectives.
The audit activities conducted by Audit Services are considered “
Performance Audits” as defined in generally accepted government auditing standards.
Audit Planning:
Annually, the Audit Services Manager shall submit to the Charitable
Bingo Operations Division Director a summary of the audit work schedule and staffing plan for the
following year. The audit work schedule is to be developed based on a prioritization of the
audit universe using a risk-based methodology. Any significant deviation from the formally
approved work schedule 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
Services 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.
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 Services may conduct appropriate follow-up on audit findings
and recommendations as warranted.
Quality Assurance:
Audit Services 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 generally accepted government auditing standards.
Periodic Assessment of Charter:
This charter will be reviewed annually by the Charitable Bingo
Operations Director and Audit Services to assess the continued adequacy and recommend changes if
needed.
|
