BOT 104: Board of Trustees-Auditor Rotation

 

Board of Trustees Policy

POLICY NUMBER: BOT 104

POLICY NAME: Board of Trustees Auditor Rotation

Effective Date: February 16, 2018
Last Review Date: June 28, 2024
Next Scheduled Review Date: June 2029

 

I. POLICY STATEMENT

This policy provides guidance on selecting and keeping auditors for the University to maintain financial integrity and mandates the transition of auditors every six years with no partner at one (1) firm allowed to serve as auditor for more than one (1) six-year (6-year) term.

II.  RESPONSIBLE OFFICE

Senior Vice President, Chief Financial Officer and Treasurer

II. SCOPE 

This policy applies to all financial audits performed by an outside party for the Board of Trustees.

 

IV.  DEFINITIONS

None listed.

V.  POLICY

It shall be the policy of the Board of Trustees to periodically rebid the University’s financial audit work. The external audit firm, selected through a bidding process overseen by the Trustee Audit, Risk, and Compliance Committee, shall be appointed initially at the beginning of the term and reappointed annually for a total term of not more than six (6) consecutive audits. At the completion of the sixth (6th) consecutive audit by the same firm, a request for proposals shall be issued to select a firm for the next audit cycle of six (6) years.

If the incumbent audit firm is selected to continue to perform the financial audit for a subsequent six-year (6-year) period, a change in the partner in charge of the audit is required.

While the board reserves the right, notwithstanding this policy, to change audit firm at any time, the board recognizes that both the University and the audit firm selected make substantial initial investments at the beginning of the audit relationship and that both parties anticipate recovery of their costs over the six-year (6-year) period. Therefore, the board does not intend to change the audit firm during the six-year (6-year) audit cycle so long as the service and the fees of the audit firm remain satisfactory through the six-year (6-year) period.

VI.  PROCEDURES

  1. The Senior Vice President, Chief Financial Officer and Treasurer shall be responsible for solicitation of proposals for external audit services at least once every six
  2. The Senior Vice President, Chief Financial Officer and Treasurer shall review the proposals with the Audit, Risk, and Compliance Committee who shall make the final
  3. No firm may act as the financial auditor for more than six (6) consecutive annual audits without being selected through a subsequent competitive proposal process except as outlined in Section V of this policy.

VII.  RELATED POLICIES AND INFORMATION

None listed.

VIII.  HISTORY

Enacted:          October 26, 1979

Amended:        June 28, 2024

February 16, 2018

May 6, 2005

February 10, 1995

October 13, 1989

December 3, 1982

Retired Policy No. 01-01-04

Policies