Charitable Bingo Audit Charter

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

Audit leadership 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 Audit leadership 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 leadership to assess the continued adequacy and recommend changes if needed.

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