Proposed changes to the Board of Trustees Audit Committee's bylaws might lead to disagreements between Ohio University and the state in a selection of a new external auditor.
OU's selection of a new external auditor, done every five years, was called into question at yesterday's committee meeting. An external auditor is an outside company or firm that conducts an audit on university funds.
Trustee C. Robert Kidder voiced concerns about the committee's authority to evaluate the external auditor. He said the wording suggested that the Audit Committee would have no power over the process, and that it would be left completely up to the state.
If it comes to push and shove
we don't have the power to remove the external auditor Kidder said. We should either change the wording (of the charter) to reflect the process or change the process altogether.
Every five years, the state gives OU a list of all the firms that have a contract with Ohio. Each firm then meets with OU, which then submits its recommended firms' bids to the state for final selection.
The (selection) process needs to get rolling said Kathy Gilmore, director of Internal Audit. She added that the recommendations are required to be in to the state before the end of the fiscal year, June 30.
Under the proposed bylaws, the Audit Committee assists the oversight of OU's financial reporting process, manages both internal and external auditors and sets an example for OU for proper financial practices and ethical behavior. The oversight of OU's financial reporting process includes the recent cash collection audit on the collection of all university funds.
The committee also discussed its proposed responsibilities, including audits of the financial operations of various sectors of OU.
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