- University Life
The Audit Committee is concerned with University policies and issues related to audits of financial affairs and management operations.
Gina A. Adams, Chair
Peter L. Scher, Vice Chair
Gary D. Cohn
Charles H. Lydecker
CFO, Vice President and Treasurer Douglas Kudravetz
In odd-numbered academic years, the Student Government President or President-designated Student Government member. In even-numbered academic years, the Graduate Leadership Council.
The Audit Committee is responsible on behalf of American University (University) for assuring that the University’s organizational culture, capabilities, systems and processes are appropriate to protect the financial health and the reputation of the University in all of the audit-related areas enumerated below. More particularly, the Audit Committee will review the financial reporting processes, the system of internal controls, the audit process, and the University’s process for monitoring and ensuring good compliance with laws and regulations. It will monitor the University’s internal and external auditors’ findings with regard to the University’s capability and performance in all audit areas and will monitor actions to assure that appropriate corrective actions are taken when deficiencies are identified.
The following are excerpts addressing committee organization from the American University By-Laws (Article VII: Standing Committees, as amended May 14, 2004):
Section 1. The Standing Committees shall be as follows: Academic Affairs Committee; Audit Committee; Campus Life Committee: Compensation Committee; Development Committee; Finance and Investment Committee; and Trusteeship Committee.
Section 2. Nominations of Standing Committee officers and members for two-year terms shall be made by the Trusteeship Committee at the Spring Board meeting. The Vice Chair of the Board shall be the Trusteeship Committee Chair, and Trusteeship Committee members shall be appointed by the Board or Executive Committee. Vacancies on Standing Committees shall be nominated by the Trusteeship Committee and approved by the Board or Executive Committee for any unexpired term. Vacancies on the Trusteeship Committee shall be filled by the Board or Executive Committee.
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Section 6. The Audit Committee consists of at least four (4) trustees and is concerned with University policies and issues related to audits of financial affairs and management operations. At the end of each fiscal year, it reviews the annual audit made by a Certified Public Accountant and reports to the Board or Executive Committee.
Roles and Responsibilities
Assure that management is setting the appropriate tone in communicating the importance of internal control and ensuring that all individuals have an understanding of their roles and responsibilities and also that the systems are in place and being followed to ensure good compliance with internal control procedures;
Review with management and the external auditor significant accounting and reporting issues, including recent professional and regulatory pronouncements, and understand their impact on the University’s financial statements; and
Annual Financial Statements:
Review the audited financial statements with the external auditor and determine whether they are complete and consistent with the information known to committee members.
Review and ensure that American University has the appropriate structure, staffing and capability to effectively carry out the internal audit responsibilities;
Following appropriate consultation with management, select and retain the University’s external auditors, and approve the external auditors’ fees;
Compliance with Laws and Regulations:
Regularly update the full Board about Audit Committee activities and key issues presided over by the Committee.
Updated June 2015