Charter

• Introduction
• Role
• Professional Standards
• Authority
• Organization
• Accountability
• Independence
• Responsibility
• Audit Scope
• Audit Planning
• Reporting

INTRODUCTION
Audit Services is an independent appraisal activity established within the Clerk of Circuit Court's office to examine and evaluate the effectiveness, efficiency and economy of its and the Board of County
Commissioners' activities. The objectives of Audit Services are to assist all levels of management of the Clerk of Circuit Court, the Board of County Commissioners and the Audit Services Planning and Priorities Committee in the effective discharge of their responsibilities by furnishing them with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed and by promoting effective control at reasonable cost.

The mission of the Audit Services Department is to provide independent, objective assurance and consulting services designed to add value and improve the Clerk of Circuit Court's and Board of County Commissioners' operations. It helps the Clerk of Circuit Court and the Board of County Commissioners accomplish their objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

ROLE
The Audit Services Department is established by the Clerk of Circuit Court and its responsibilities are defined by the Audit Services Planning and Priorities Committee as part of their oversight function.

PROFESSIONAL STANDARDS:
The Audit Services Department staff shall govern themselves by adherence to the Institute of Internal Auditors (IIA) "Code of Ethics." The IIA's "Standards for the Professional Practice of Internal Auditing" and "Statement of Responsibilities" shall constitute the operating procedures for the department. In addition, Audit Services will adhere to Clerk of Circuit Court policies and procedures and the Audit Services operational policies and procedures manual.

AUTHORITY
Section 1.(d), Article VIII, State Constitution, provides for the election of certain County Officers including a Clerk of Circuit Court. The latter part of this section specifies that, "...the Clerk of Circuit Court shall be ex officio clerk of the Board of County Commissioners, auditor, recorder and custodian of all county funds" (Emphasis supplied). Section 16, Article V, State Constitution, also specifies that the Clerk of Circuit Court shall have the duties quoted above.

The Supreme Court of Florida in the case of Alachua v. Powers (351 So. 2d 32) ruled that the Clerk of Circuit Court is to act as county auditor in all auditing functions except when the Board of County Commissioners employs an independent certified public accountant. The Attorney General, in Opinion No. 86-38, ruled that the Clerk of Circuit Court "... as ex officio county auditor is not authorized to perform post-audit functions on the records of the other constitutional officers."

As authorized by Sections 11.45(1)(e), 11.45(3)(a)3, and 125.01(1)(x), Florida Statutes, the Board of County Commissioners retains an independent certified public accounting firm to perform an annual financial audit of its accounts and records including the accounts and records of all county officers named in Section 1.(d), Article VIII, State Constitution.

Pursuant to the legal authority and responsibility cited above, and recognizing the importance of government compliance with laws, policies, established procedures, and accountability for the use of public funds while exercising its power and performing its duties:

• Audit Services is granted authority for full, free, and unrestricted access to any and all of the Clerk of Circuit Court's and Board of County Commissioners' activities, records (either manual or electronic), property, functions, and personnel relevant to any function under review.
• All employees are to assist Audit Services by providing any necessary personnel to assist those of the Clerk of Circuit Court and Board of County Commissioners where Audit Services performs audits, as well as other specialized services from within or outside the Clerk of Circuit Court and Board of County Commissioners.
• Audit Services is granted authority to allocate resources, select subjects, determine scopes of work, and apply the techniques required to accomplish audit objectives.

Documents and information given to Audit Services during a periodic review will be handled in the same prudent manner as by those employees normally accountable for them.

The Audit Services Director and staff of the Audit Services Department are not authorized to:

• Perform any operational duties for the Clerk of Circuit Court and Board of County Commissioners or its affiliates with the exception of the reporting and enforcement of the Hernando County Tourist Development Tax.
• Initiate or approve accounting transactions external to the Audit Services Department.
• Direct the activities of any Clerk of Circuit Court or Board of County Commissioners employee not employed by the Audit Services Department, except to the extent that such employees have been appropriately assigned to auditing teams or to otherwise assist the internal auditors.

ORGANIZATION
The Audit Services Director, shall report administratively to the Clerk of Circuit Court and functionally to the Audit Services Planning and Priorities Committee.

ACCOUNTABILITY:
The Audit Services Director, in the discharge of his/her duties, shall be accountable to the Clerk of Circuit Court and the Audit Services Planning and Priorities Committee to:

• Periodically provide an assessment of the adequacy and effectiveness of the Clerk of Circuit Court's and the Board of County Commissioners' processes for controlling their activities and managing their risks in the areas set forth under the mission and scope of work.
• Report significant issues related to the processes for controlling the activities of the Clerk of Circuit Court and Board of County Commissioners, including potential improvements to those processes, and provide information concerning such issues through resolution.
• Periodically provide information on the status and results of the annual audit plan and the sufficiency of department resources.
• Coordinate with and provide oversight of other control and monitoring functions.

INDEPENDENCE
All audit activities shall remain free of influence by any element in the Clerk of Circuit Court or the Board of County Commissioners, including matters of audit scope, procedures, frequency, timing, or report content to permit maintenance of an independent mental attitude necessary in rendering objective reports.

Internal Auditors shall have no direct operational responsibility or authority over any of the activities they review. Additionally, they shall not develop nor install systems or procedures, prepare records, or engage in any other activity which would normally be audited.

RESPONSIBILITY
The Audit Services Director and staff of the Audit Services Department have responsibility to:

• Develop a flexible annual audit plan using an appropriate risk-based methodology, including any risks or control concerns identified by management, and submit that plan to the Audit Services Planning and Priorities Committee for review as well as periodic updates.
• Implement the annual audit plan, as approved by the Clerk of Circuit Court, including as appropriate, any special tasks or projects requested by management and the Audit Services Planning and Priorities Committee.
• Maintain a professional staff with sufficient knowledge, skill, experience, and professional certifications to meet the requirements of this Charter.
• Exercise honesty, objectivity, and diligence in the performance of their duties and responsibilities.
• Undertake only those services which they can reasonably expect to complete with professional judgement.
• Evaluate and assess significant merging/consolidating functions and new or changing services, processes, operations, and control processes coincident with their development, implementation, and/or expansion.
• Prepare and maintain sufficient workpapers to substantiate work performed, findings reported, and recommendations made.
• Issue periodic updates to the Audit Services Planning and Priorities Committee.
• Keep the Audit Services Planning and Priorities Committee informed of emerging trends and successful practices in internal auditing.
• Provide a list of significant measurement goals and results to the Audit Services Planning and Priorities Committee.
• Assist in the investigation of significant suspected fraudulent activities within the Clerk of Circuit Court and Board of County Commissioners and notify the Clerk of Circuit Court, the Audit Services Planning and Priorities Committee, and the appropriate level of management of the results.
• Consider the scope of work of the external auditors and regulators, as appropriate, for the purpose of providing optimal audit coverage to the Clerk of Circuit Court and the Board of County Commissioners at a reasonable overall cost.
• Assist law enforcement authorities, as appropriate, in the investigation of occurrences involving suspected or alleged employee theft or loss, embezzlement, fraud, abuse, or illegal acts. The Audit Services Department will be notified of all such incidents.

AUDIT SCOPE
The scope of work of the Audit Services Department is to determine whether the Clerk of Circuit Court's and Board of County Commissioners' network of risk management, control, governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure that:

• Risks are appropriately identified and managed.
• Interaction with the various governance groups occurs as needed.
• Significant financial, managerial, budgeting, and operating information is accurate, reliable, and timely.
• Employees' actions are in compliance with policies, standards, procedures, and applicable laws and regulations.
• Resources are acquired economically, used efficiently, and adequately protected.
• Programs, plans, and objectives are achieved.
• Quality and continuous improvement are fostered in the Clerk of Circuit Court's and Board of County Commissioners' control process.
• Significant legislative or regulatory issues impacting the organization are recognized and addressed appropriately.

Opportunities for improving management control, effectiveness, and the Clerk of Circuit Court's and Board of County Commissioners' image may be identified during audits. They will be communicated to the appropriate level of management.

AUDIT PLANNING
Annually, the Audit Services Director shall submit to the Clerk of Circuit Court and the Audit Services Planning and Priorities Committee an Audit Calendar for the following fiscal year. The Audit Calendar is to be developed based on a prioritization of the audit universe using relevant risk factors. Any significant deviation from the formally approved work schedule shall be communicated to the Clerk of Circuit Court and the Audit Services Planning and Priorities Committee through periodic activity reports.

REPORTING
A written report will be prepared and issued by the Audit Services Director or designee following the conclusion of each audit and will be distributed as appropriate. A copy of each audit report or a summarization will be forwarded to the Board of County Commissioners and the Audit Services Planning and Priorities Committee members.

The Audit Services Director or designee may include in the audit report the auditee's response and corrective action taken or to be taken in regard to the specific finding and recommendations. Management's response should include a timetable for anticipated completion of action to be taken and an explanation for any recommendations not addressed.

In cases where a response is not included within the audit report, management of the audited areas should respond, in writing, within thirty days of publication to Audit Services and those persons on the distribution list.

Audit Services shall be responsible for appropriate follow-up on audit findings and recommendations.