#40035 RECORDS OF THE INTERNAL AUDIT DEPARTMENT in the University Archives and Records Services Wilson Library, CB# 3926 University of North Carolina at Chapel Hill Chapel Hill, North Carolina 27514-8890 August 1998 INTRODUCTION The Internal Audit Department is described by the University’s Business Manual as a service unit designed to aid University management by analyzing the operations, internal controls, and financial accounting of campus units. The Internal Audit Department seeks to assess whether a unit’s financial and operational procedures insure that University resources are used in compliance with state requirements and University-wide policies. To that end, the Department conducts reviews of campus units according to a risk-based, long-range audit plan. In determining the occurrence, frequency, and scope of audits, the Department considers such factors as financial statistics, operational complexity, interaction with other campus units or external bodies, risk of error, and the potential impact of negative publicity. In addition, Internal Audit investigates allegations of misuse of property or funds and performs special projects for University managers on an as-needed basis. In 1961 the North Carolina General Assembly approved the University’s request to create the position of Internal Auditor. Initially the position was part of the University’s Division of Business and Finance and reported to the Business Manager (whose title later changed to Vice Chancellor for Business and Finance). In 1994 Chancellor Paul Hardin, prompted by reports of procedural errors in Internal Audit, reorganized the Internal Audit Department and, effective September 1 of that year, made it report directly to the Chancellor. Individuals who have held the position of Internal Auditor, and later Director of Internal Audit, are listed below along with their tenures. Thomas S. Brickhouse 1961-1963 William R. Inman 1963-1969 Thomas K. Norris 1970-1973 Russell Clark 1973-1981 Charles C. Antle, Acting July-Sept. 1981 Edwin A. Capel, Jr. 1981-1994 Bruce L. Thomas, Interim Sept.-Dec. 1994 S. Grady Fullerton, Interim Jan.-Sept. 1995 Phyllis C. Petree Sept. 1995- During Inman’s tenure, a Staff Auditor position was added. Thus, in 1970, when Norris was appointed, the title Internal Auditor was changed to Director of Internal Audit. By 1975 the Department of Internal Audit had reached its current staffing level of Director, Audit Assistant, and four Staff Auditors. Edwin Capel was Director at the time Chancellor Hardin reorganized the Department; in September 1994, following the reorganization, he requested and was granted reassignment within the University. The Internal Audit Department records currently held by the University Archives consist of audit reports issued by the Department from 1970 to 1987. The reports are arranged by the names of the units audited. Individual departments, with the exception of those in the College of Arts and Sciences, are listed under the names of the schools to which they belong. An inventory of these reports is provided below. Titles listed in the inventory are those given to the reports by the Internal Audit Department, with the exception of those listed as General Audit. The General Audit reports are untitled and usually state their scope as “an evaluation of internal controls, the [unit’s] compliance with University policies and procedures, and such tests of the detailed financial records as we considered necessary in the circumstances.” Internal Audit has assigned each report a number, which is included in the inventory. This number does not reflect the number of reports made for a given unit but rather the report’s place in the entire series of Internal Audit reports. Reports with an “X” before the number are special investigations of specific problems or allegations. Box 1: Accounting, Dept. of: Postage Survey Audit, Report 75, June 18, 1976 Postage Use Survey, Report X-87, Aug. 7, 1987 Accounts Payable: Check Preparation, Report 129, Nov. 7, 1979 Travel Accounting Section, Report 131, Sept. 27, 1979 Capital Improvement Funds: Balance Transfers, Report 244, Sept. 19, 1984 Endowment Trust and Special Funds: Checking Account Balance, Report 9, Mar. 12, 1973 Investment Revenue, Report 161, Oct. 10, 1980 Tax-Exempt Payrolls: Eligibility Determination, Report 3, Feb. 3, 1971 Travel Advance Funds: General Audit: Report 22, Feb. 17, 1972 Report 29, June 30, 1972 Ackland Art Center: Cash Receipts Audit, Report 98, June 28, 1978 Admissions, Undergraduate (see Undergraduate Admissions, below) African and Afro-American Studies, Curriculum in: Southeastern Black Press Institute: General Audit, Report 94, May 17, 1978 Air Force Reserve Officers Training Corps (AFROTC): General Audit, Report 85, Feb. 7, 1977 Storeroom Audit, Report 215, Aug. 30, 1982 Alcohol Studies, Center for: Review of Controls Over Revenue Receiving, Report 115, May 31, 1979 Alumni Records Office and General Alumni Association: General Audit, Report 175, Apr. 2, 1981 American Studies, Curriculum in: General Audit, Report 233, May 3, 1983 Anthropology, Dept. of, and Research Laboratories of Anthropology: General Audit, Report 192, Nov. 4, 1981 Art, Dept. of: Cash Receipts Audit, Report 99, Sept. 25, 1978 Athletics, Dept. of: Track Team Investigation, Report 279, Sept. 5, 1985 Smith Center: Special Events Procedures, Report X-84, Feb. 21, 1986 Student Activities Center Building Fund: Pledge Audit, Report 209, Apr. 5, 1982 Botanical Garden (see North Carolina Botanical Garden, below) Botany, Dept. of: General Audit, Report 183, July 8, 1981 Business Administration, School of: Revenue Receiving Functions, Report 106, Feb. 26, 1979 Business Services, Bureau of: Revenue Receiving Functions, Report 117, May 30, 1979 Campus Y: General Audit, Report 263, June 18, 1985 Carolina Inn: General Audit, Report 258, Feb. 19, 1985 Physical Inventory, Report 19, Nov. 30, 1971 Procedural Audit, Report 133, Oct. 25, 1979 Review of Procedures for Income Accounting, Report 12, Sept. 24, 1971 Sales Activities Review, Report 91, Nov. 10, 1977 Special Investigation, Report X-92, Nov. 18, 1987 Carolina Population Center: Revenue Receiving Functions, Report 110, Apr. 24, 1979 Trust Fund 72427, Report 10, May 31, 1971 Carolina Union: General Audit, Report 254, Apr. 4, 1986 Vending Machine Income, Report 77, Jan. 14, 1976 Cashier, University (see University Cashier, below) Chemistry, Dept. of: Cash Receipts Audit, Report 119, June 26, 1979 City and Regional Planning, Dept. of: General Audit, Report 213, Sept. 21, 1982 Classics, Dept. of: General Audit, Report 206, Apr. 20, 1982 Comparative Literature, Curriculum in: General Audit, Report 191, Dec. 3, 1981 Computation Center: Revenue Receiving Functions, Report 109, Apr. 9, 1979 Computer Science, Dept. of: General Audit, Report 199, May 10, 1982 Contracts and Grants, Office of: Time and Effort Certification Report, Report 102, Nov. 30, 1978 Counseling Center, University (see University Counseling Center, below) Daily Tar Heel: Operations and Interactions with the Student Activities Fund Office, Report 100, Sept. 26, 1978 Dentistry, School of: Clinic Income Procedures, Report 23, Dec. 16, 1971 Revenue Receiving Functions, Report 126, Aug. 28, 1979 Development Office: Cash Receipts Audit, Report 108, Mar. 26, 1979 Alumni Annual Giving: Cash Receipts Audit, Report 113, Apr. 27, 1979 Dramatic Art, Dept. of: General Audit, Report 211, Nov. 9, 1982 Economics, Dept. of: General Audit, Report 207, Sept. 14, 1982 Education, School of: Revenue Receiving Functions, Report 118, June 25, 1979 Upward Bound Program: General Audit, Report 247, Apr. 18, 1984 Program Evaluation, Report 73, Apr. 1, 1975 Summer Food Service Program Audit: Report 283, Dec. 9, 1983 Report 291, Nov. 12, 1987 English, Dept. of: General Audit, Report 205, May 13, 1982 Extension and Continuing Education, Division of: General Audit, Report 242, Sept. 5, 1984 Review of Revenue Procedures and Related Internal Controls in Administrative Office, Report 162, Nov. 11, 1980 Review of Revenue Procedures and Related Internal Controls, Report 165, Nov. 24, 1980 Developmental Disabilities Training Institute: General Audit, Report 265, Jan. 8, 1986 Review of Procedures and Related Internal Controls, Report 163, Nov. 11, 1980 Extension and Continuing Education, Division of: (cont.) Independent Study, Division of: Review of Revenue and Related Internal Controls, Report 164, Nov. 11, 1980 Off-Campus Credit Programs: Review of Revenue and Related Internal Controls, Report 166, Nov. 11, 1980 Facilities Planning and Design Office: Telephone Use Audit, Report X-89, Sept. 9, 1987 Food Service: ARA Food Services, Report 262, Sept. 17, 1985 Contract with Servomation Mathias, Report 6, May 10, 1971 Servomation Audit: Report 96, June 7, 1978 Report 121, July 5, 1979 Frank Porter Graham Child Development Center: General Audit, Report 253, Feb. 15, 1985 Geography, Dept. of: General Audit, Report 194, Dec. 1, 1981 Geology, Dept. of: General Audit, Report 201, May 3, 1982 General Alumni Association (see Alumni Records and General Alumni Association, above) Germanic Languages, Dept. of: General Audit, Report 193, Feb. 2, 1982 Government, Institute of: General Audit, Report 275, May 5, 1987 Procedures for Accounting for Income, Report 47, July 17, 1973 Graduate School: Cash Receipts Audit of Admissions Office, Report 155, Aug. 12, 1980 Cash Shortage Investigation of Enrolled Students Division, Report 154, July 23, 1980 Hand Rehabilitation Center: Procedures for Accounting for Income and Patient Billings, Report 48, Aug. 27, 1973 Health Sciences Library: Revenue Audit, Report 88, Aug. 2, 1977 Health Services Research Center: General Audit, Report 177, Apr. 14, 1981 History, Dept. of: General Audit, Report 198, May 4, 1982 Horace Williams Airport: General Audit: Report 128, Aug. 31, 1979 Report 270, Jan. 8, 1986 Housing, University (see University Housing, below) International Programs, Office of: General Audit, Report 249, Aug. 6, 1984 Journalism, School of: Cash Receipts Audit, Report 114, May 9, 1979 Kerr Lake Recreation Association: Operations Audit, Report 120, July 6, 1979 Law, School of: Review of Controls Over Revenue Receiving, Report 112, Apr. 27, 1979 Latin American Studies, Institute of: General Audit: Report 187, July 29, 1981 Report 259, Nov. 14, 1984 Laundry, University: General Audit: Report 97, June 16, 1978 Report 157, July 29, 1980 Report 271, Jan. 31, 1986 Library, Academic Affairs: Revenue Audit, Report 160, Sept. 30, 1980 Library Science, School of: General Audit, Report 236, July 25, 1983 Mail Services, University: Procedural Review, Report 218, Aug. 10, 1982 Mathematics, Dept. of: General Audit, Report 197, Jan. 7, 1982 Media Center: Accounting Procedures, Report 86, Mar. 29, 1977 Accounts Receivable and Billing Procedures, Report X- 85, May 1, 1986 Photographic Lab Revenue Audit, Report 172, Mar. 27, 1981 Revenue Procedures Audit, Report 178, Apr. 16, 1981 Medical Foundation of North Carolina: Airplane Operations, Report 13, June 30, 1971 Medicine, School of: Biochemistry, Dept. of: Revenue Receiving Functions, Report 105, Jan. 16, 1979 Dermatology, Dept. of: General Audit, Report 170, Mar. 3, 1981 Family Medicine, Dept. of: General Audit, Report 176, Mar. 31, 1981 Genetic Counseling Program: General Audit, Report 169, Feb. 24, 1981 Laboratory Animal Medicine, Division of: Revenue Audit, Report 159, Sept. 9, 1980 Medical Faculty Practice Plan: Cash Receipts Internal Control, Report 71, July 25, 1975 Special Inquiry Related to Payments, Report 138, Sept. 26, 1979 Medical Illustrations and Photography, Dept. of: General Audit, Report 251, May 15, 1984 Medicine, Dept. of: General Audit, Report 182, June 22, 1981 Ophthalmology, Dept. of: Revenue Audit, Report 174, Mar. 30, 1981 Pathology, Dept. of: Cash Receipts Audit, Report 130, Sept. 19, 1979 Pediatrics, Dept. of: General Audit, Report 186, July 24, 1981 Pharmacology, Dept. of: Revenue Audit, Report 181, May 14, 1981 Private Patient Service (see Medical Faculty Practice Plan, above) Psychiatry, Dept. of: General Audit, Report 222, Oct. 31, 1983 Revenue Receiving Functions, Report 153, July 1, 1980 TEACCH Division: General Audit, Report 239, June 29, 1983 Surgery, Dept. of: Revenue Receiving Functions, Report 140, Jan. 25, 1980 Memorial Hospital: Operation of Parking Lots, Report 1, Nov. 13, 1970 Box 2: Morehead Planetarium: Accounts Receivable and Cash Receipts Audit, Report 202, Aug. 2, 1982 Audit and Operations Review, Report 84, Mar. 1, 1977 General Audit, Report 274, Mar. 25, 1987 Revenue Audit, Report 124, Aug. 20, 1979 Review of Procedures for Accounting for Income, Report 24, Jan. 7, 1972 Music, Dept. of: General Audit, Report 200, Mar. 2, 1982 Naval Science, Dept. of (NROTC): General Audit, Report 240, Aug. 29, 1983 News Bureau and The University Gazette: General Audit, Report 216, Oct. 28, 1982 North Carolina Botanical Garden: General Audit, Report 190, Mar. 2, 1982 Nursing, School of: Cash Fraud Investigation, Report 135, Dec. 18, 1979 General Audit, Report 243, Dec. 19, 1983 Outdoor Drama, Institute of: General Audit, Report 214, Sept. 8, 1982 Peace, War, and Defense, Curriculum in: General Audit, Report 245, Nov. 29, 1983 Pharmacy, School of: Revenue Receiving Functions, Report 125, Aug. 10, 1979 Philosophy, Dept. of: General Audit, Report 204, Aug. 20, 1985 Physical Education, Dept. of: General Audit, Report 208, Aug. 5, 1982 Intramural Program: Selected Financial Situations, Report 89, Aug. 17, 1977 Physical Plant: Central Control Monitoring System, Report 260, July 12, 1984 Revenue Audit, Report 134, Oct. 19, 1979 Physics and Astronomy, Dept. of: General Audit, Report 203, Oct. 11, 1982 Placement Services, University: General Audit, Report 220, Oct. 6, 1982 Playmakers Repertory Company: Financial Audit: Report 104, Jan. 15, 1979 Report 196, Nov. 11, 1981 Report 217, Oct. 5, 1982 Financial Statements: Report 136, Nov. 27, 1979 Report 156, Aug. 25, 1980 Political Science, Dept. of: General Audit, Report 223, Dec. 14, 1982 Printing and Duplicating Dept.: General Audit, Report 127, Sept. 10, 1979 Property Office: General Audit, Report 144, Mar. 6, 1980 Psychology, Dept. of: Cash Receipts Audit, Report 151, May 28, 1980 Public Health, School of: Dean’s Office Cash Receipts Audit, Report 139, Jan. 11, 1980 Biostatistics, Dept. of: Cash Receipts Audit, Dec. 6, 1979 Community Health Services, Division of: Cash Receipts Audit, Report 146, Apr. 10, 1980 Environmental Sciences and Engineering, Dept. of: Cash Receipts Audit, Report 142, Jan. 29, 1980 Epidemiology, Dept. of: Revenue Audit, Report 188, Aug. 21, 1981 Health Policy and Administration, Dept. of: UNFPA Grant Audit, Report 227, Oct. 25, 1982 Public Policy Analysis, Curriculum in: General Audit, Report 229, Jan. 12, 1983 Purchases and Stores: Central Stores Inventory: Report 76, Apr. 27, 1976 Report 82, Mar. 3, 1977 Report 90, Oct. 21, 1977 Central Warehouse and Stores Inventory Observation: Report 237, May 9, 1983 Report 256, Nov. 28, 1984 Report 266, Sept. 23, 1985 Report 285, June 17, 1987 Purchases and Stores: (cont.) Central Warehouse and Stores Physical Inventory: Report 123, July 23, 1979 Report 212, Apr. 22, 1982 Chemistry and Electronics Physical Inventories, Report 57, June 30, 1973 Dental Storeroom Special Investigation, Report 147, Apr. 25, 1980 Encumbering Procedures, Report 34, Jan. 9, 1973 General Storeroom Physical Inventory: Report 15, June 30, 1971 Report 54, June 30, 1973 Hospital Storeroom Physical Inventory: Report 20, June 30, 1971 Report 56, Nov. 19, 1973 Report 67, Sept. 11, 1974 Office Machines Inventory, Report 52, Nov. 2, 1973 Scientific Supply Room Physical Inventory: Report 17, June 30, 1971 Report 55, June 30, 1973 Special Inventory Report, Report 50, Feb.-June, 1972 Utilities Storeroom Physical Inventory: Report 16, June 30, 1971 Report 53, June 30, 1973 Purchasing Dept.: Audit of Inventory Adjustments, Pricing Methods and Turnover, Report 50, Oct. 1, 1973 Review of Paid Invoices to Maddux Supply, Report 32, June 13, 1972 Review of Procedures for Handling Surplus Property, Report 28, Mar. 14, 1972 Review of Purchases from Fisher Scientific Company, Report X-83, Apr. 8, 1986 Review of University Processing of State Surplus Property and Related Revenue, Report 171, Mar. 11, 1981 Sale of Surplus Property, Report 38, Feb. 1, 1973 Quail Roost Conference Center: General Audit, Report 268, June 9, 1986 Revenue Audit, Report 158, Sept. 3, 1980 Radio, Television, and Motion Pictures, Dept. of: General Audit, Report 221, Oct. 14, 1982 Recreation Administration, Curriculum in: General Audit, Report 252, June 13, 1984 Religion, Dept. of: General Audit, Report 228, Mar. 17, 1983 Research Laboratories of Anthropology (see Anthropology, Dept. of, above) Research Services, Office of: General Audit, Report 248, May 10, 1984 Romance Languages, Dept. of: Cash Receipts Audit, Report 132, Oct. 1, 1979 Review of Publication Activities, Report 70, July 14, 1975 Year Abroad Programs, Report 195, Nov. 16, 1982 Slavic Languages, Dept. of: General Audit, Report 246, Dec. 7, 1983 Social Science, Institute for Research in: General Audit, Report 241, Oct. 31, 1983 Social Work, School of: General Audit, Report 210, Feb. 10, 1983 Group Child Care Consultant Services: Cash Receipts Audit, Report 103, Dec. 15, 1978 Sociology, Dept. of: General Audit, Report 224, Feb. 21, 1983 Southeastern Black Press Institute (see African and Afro- American Studies Curriculum, above) Statistics, Dept. of: General Audit, Report 226, Feb. 28, 1983 Student Activities Fund: Disbursements Investigation, Report X-91, Oct. 12, 1987 Student Aid Office: Cash Receipts Procedures, Report 58, Feb. 28, 1974 College Work Study Program, Report 2, Aug. 15, 1969 (prepared by the Dept. of State Auditor) General Audit: Report 95, May 22, 1978 Report 149, Apr. 29, 1980 Student Health Service: General Audit, Report 255, Mar. 22, 1985 Revenue Procedures Audit, Report 167, Jan. 9, 1981 Student Stores: Cash Shortage Investigation, Report X-88, July 15, 1987 General Audit, Report 235, Nov. 1, 1983 Physical Inventory: Report 14, June 30, 1971 Report 49, June 30, 1973 Report 107, Mar. 12, 1979 Report 145, June 26, 1980 Report 277, Apr. 2, 1986 Review of Accounting Systems and Procedures, Report 185, July 24, 1981 Review of Cash Handling in the University Snack Bars, Report 4, Feb. 18, 1971 Review of Operations, Report 101, Nov. 6, 1978 Review of Procedures for Handling Income, Report 21, Nov. 22, 1971 Triangle Coin Caterers Audit: Report 173, Nov. 10, 1980 Report 269, June 3, 1985 Student Union (see Carolina Union, above) Summer Session: Review of Income: Report 11, Aug. 24, 1971 Report 36, Jan. 2, 1973 Report 143, Mar. 13, 1980 Review of Health Affairs Income, Report 189, Sept. 4, 1981 Traffic Office: Appeals Procedure, Report 288, Sept. 18, 1987 General Audit, Report 273, June 17, 1986 Parking Meter Collections, Report 238, Mar. 23, 1983 Petty Cash Fund, Report 111, Jan. 16, 1979 Revenue Audit, Report 92, Apr. 27, 1978 Review of Internal Controls, Report 68, Dec. 31, 1974 Undergraduate Admissions, Office of: Review of Controls Over Revenue Receiving, Report 122, July 17, 1979 Review of Procedures for Handling Application Fees, Report 26, Feb. 26, 1972 University Cashier, Office of: Delinquent Student Accounts Collection Procedures, Report 168, Jan. 13, 1981 Review of Operating Procedures, Report 27, Mar. 17, 1972 University Counseling Center: Revenue Procedures Audit, Report 184, July 10, 1981 University Housing, Dept. of: Conference/Short-Term Housing Revenue Audit, Report 150, May 8, 1980 General Audit: Report 7, May 19, 1971 Report 234, Mar. 15, 1984 Housing Maintenance Investigation, Report 232, Feb. 15, 1983 Married Student Housing Revenue Audit, Report 148, Apr. 25, 1980 Residence Hall Revenue Audit, Report 141, Jan. 23, 1980 Review and Recommendations, Report 80, Oct. 20, 1976 Review of Revenue Accounts for Dormitory Rentals, Report 39, Jan. 26, 1973 Short-Term Rental, Report 81, Aug. 31, 1976 University Gazette (see News Bureau, above) University Laundry (see Laundry, University, above) Urban and Regional Studies, Center for: General Audit, Report 179, Apr. 28, 1981 Utilities Division: Review of Collection Procedures, Report 30-A, May 15, 1972 Review of Operating Procedures Related to Revenue Sources, Report 30-B, May 18, 1972 Telephone Utilities Division: Motor Vehicle Operation Expenditure Account, Report 59, Mar. 19, 1974 Women’s Studies Program: General Audit, Report 250, May 10, 1984