POLICIES AND PROCEDURES

INTERNAL AUDIT CHARTER

The Internal Audit Charter is a formal document that defines the internal audit activity's purpose, authority, and responsibility. The charter establishes the internal audit activity's position within the organization, including the nature of the Chief Internal Auditor's functional reporting relationship with the board; authorizes access to records, personnel, and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities. Final approval of the internal audit charter resides with the Superintendent. 

INTERNAL AUDIT SOP 1600-003

In April 2016, Internal Audit Office (IAO) Standard Operating Procedure 1600-003 was approved. The SOP applies to all Guam Department of Education (GDOE) schools and divisions. The SOP established roles, guidelines, and processes for the IAO in order to provide quality audits and reviews in the most effective manner.

Under the Superintendents direction, the IAO has the authority to conduct any audits, reviews, and special requests or investigate any matters within its scope of responsibilities with or without notice to management and/or external parties. In conducting its audits, the IAO audit staff is required to abide by the IIAO Definition of Internal Auditing, the Code of Ethics, and the Standards, U.S. GAO’s Standards for Internal Control in the Federal Government, and U.S. GAO’s Government Auditing Standards.

MIC BOARD POLICY 702

In September 2008, Board Policy 702 established the MIC Program and the MIC SOP 1600-002 became effective. In January and May 2009, Guam Department of Education (GDOE) reported to the U.S. Department of Education (US Ed.), in its Comprehensive Corrective Action Plan (CCAP), that a new MIC Program has been implemented. US Ed viewed the MIC Program as a major component for educating and emphasizing the need for GDOE to embrace such a program.

In May 2014, the MIC Program was strongly implemented. The IAO required for all division heads, school principals, and management to complete the MIC Assessment. Overall, the MIC Program details internal control standards that ensure the operation of internal controls over financial reporting and provides for the prevention or detection of financial misstatements on  a timely basis and ensure GDOE's ability to initiate, authorize, record, process, and report financial data consistently and reliably. 

MIC SOP 1600-002

Effected in in September of 2008, the MIC Standard Operating Procedure 1600-002 delineates the applicability, purpose, responsibilities, and procedures of the MIC Assessment Program. In accordance with MIC SOP 1600-002, the Internal Audit Office (IAO) is to complete an analysis of the MIC assessments.

The MIC Assessment is a self-assessment tool used by the Guam Department of Education (GDOE) which provides a good starting point for identifying high risk areas within GDOE schools and divisions. Its objective is to ensure that GDOE's goals, objectives, policies, and procedures are conducive to achieving sound management controls and emphasize the importance of management integrity and ethics. The MIC Assessment allows the responder (or participant) to evaluate three areas of his/her division or school's program or administrative function's management control system: (1) General control environment, (2) Inherent risk, and (3) Safeguards. 

NAF SOP

The Non-Appropriated Fund (NAF) Standard Operating Procedure (SOP) applies to all Guam Department of Education (GDOE) personnel participating in the Student Activity Process It applies to the Student Activity Process from the time student funds are raised to the time those funds are expended. Non-appropriated funds are specified by Guam Education Board Policy 715 and enabled by Public Law (P.L.) 26-26.

Each school shall have SOP's to properly account for NAF receipts and disbursements and the GDOE Internal Audit Office (IAO) shall audit each school activities fund as often as required, but at least annually.

FRAUD HOTLINE SOP

In November 2015, the Internal Audit Office (IAO) launched its Fraud Hotline and Hotline-Standard Operating Procedure (SOP). The purpose of the hotline is to establish a means for government employees, the general public, or vendors to file a complaint, concern, or to report suspected waste, fraud, or violations of GDOE policy by any individual working for or doing business with GDOE.

The purpose of the SOP is to establish the roles, guidelines, and procedures for the receipt, retention, review and investigation of complaints and citizen concerns reported directly to the GDOE IAO Hotline. The GDOE Superintendent and IAO encourage any concerned individual to report financial fraud, waste, or abuse involving a GDOE employee or vendor.