Taking into consideration the risks identified externally as well as internally, and balancing all of the above with our available resources, the audit plan for FY 2025 includes the following:
We approach the audit plan in two tiers to provide the Committee with an understanding of our current priorities and enable flexibility to accommodate performing audit work in response to emerging issues. The audits in bold are Tier 1 audits and are considered higher-priority projects. The remaining audits are Tier 2 audits. Both tiers are expected to be completed based on the expected average of 14.5 FTE auditors. However, Tier 2 audits may be replaced/substituted if there are staffing constraints or higher priority needs for audit coverage arise during the year. Changes made to the Tier 2 projects due to variance in staffing or priority changes will be communicated to the Committee.
In addition to these listed audits, we are reserving time to prepare for our External Quality Assurance Review and review potential process and documentation changes required by an update in our professional standards (as further detailed below). We will also continue to plan to perform audit work associated with any changes to the University's healthcare partnerships or with the PEAK implementation if the need arises. We will also continue to perform: 1) gift testing in alignment with the memorandums of understandings with University foundations, and 2) senior leader transition audits as they occur including for: President, UMD Chancellor, and the Vice Provost for the Office of Undergraduate Education.
The proposed audit plan includes coverage of selected risks included on the Institutional Risk Profile as outlined in the table below.
FY 2025 Audit Coverage by University Components
The FY 2025 plan continues to provide well-balanced coverage across the University. The following chart shows the distribution of audit coverage by University component for FY 2025, based on the number of hours allocated to each component.
Summary
The proposed FY 2025 internal audit plan rationally allocates the University’s finite audit resources to a well-balanced portfolio of audits that address areas identified as being of significant risk, provides coverage across the breadth of the institution, and will provide information to help inform leadership and governance discussions. The plan also provides for additional flexibility to enable us to respond to fluctuations in staffing and emerging needs throughout the year, including potential changes to the University's healthcare partnerships.