INTERNAL AUDIT

About the Department

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, controls, and governance processes.

The objectives for the Internal Audit Department at HHMI include:

1. Assess the soundness of the Institute's internal controls and identify potential improvements in controls.
2. Appraise the economy and efficiency with which resources are employed and identify means for improving HHMI operations.
3. Review the systems established to ensure compliance with applicable laws, regulations, contracts, policies and procedures.
4. Review the reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
5. Review the means of safeguarding Institute assets and, as appropriate, verify the existence of such assets.
6. Participate in the development of standard policies and procedures.
7. Participate in the planning, testing, and implementation of computer-based applications.

Reporting
The Internal Audit Department reports to the Vice President for Finance and Treasurer and to the Trustees through the Audit and Compensation Committee. The Department furnishes the Trustees and management with independent and objective analyses, recommendations, counsel, and information concerning the activities reviewed. Semi-annually, the Department provides both written and oral reports to the Audit & Compensation Committee regarding audits and other activities conducted during the period, their status, and important findings and recommendations. The Committee reviews the reports and the audit plan for the coming year.

Codes of Ethics and Professional Conduct
As members of the American Institute of Certified Public Accountants (AICPA) and the Institute of Internal Auditors (IIA), the Department subscribes to the AICPA Code of Professional Conduct, which can be found on the AICPA Web page at http://www.aicpa.org/Research/Standards/CodeofConduct/Pages/intro.aspx, and the IIA's Code of Ethics and Standards for the Professional Practice of Internal Auditing, which are at www.theiia.org/iia/index.cfm?doc_id=92.