Charter of the Committee on Internal and External Audit
November 2017
Name
The name of this committee shall be the American Association of State Highway and Transportation Officials (AASHTO), “COMMITTEE ON INTERNAL ANDEXTERNAL AUDIT”
Purpose
Section 1
The committee shall establish audit procedures that are sufficiently flexible for use in each Department, yet standardized enough to achieve uniformity and provide member departments alternative solutions for compliance with audit requirements that also meet their individual needs.
It shall also provide a forum for transportation related internal and external audit organizations to keep abreast of requirements, regulations, procedures and innovative techniques employed by individual states, thus enhancing their efforts to provide a better service to management. It shall identify and report to its parent standing committee on any federal regulatory mandates of national concern. Each Member Department shall be entitled to membership thereon.
Section 2
To ensure consistency and the best thinking of the Association, thecommittee shall work cooperatively, as appropriate, with other committees.
The committee may maintain a liaison and share information with the Federal Highway Administration and other agencies and organizations whose practices are of interest to the Member Departments.
Membership
- To be a member, one must be employed as an auditor from one of the 52 member departments. Member departmentsare allowed to send any number of auditors to the annual meeting and participate in the committee functions.
Committee Structure
The committee leadership consisting of three officers shall administer the affairs of the committee. The three officers shall be elected for a term of two years by majority vote of the fellow members present at the annual meeting. Terms of the officers shall run accordance with AASHTO operating policy.
The officers shall consist of the chair, vice-chair, secretary and treasurer. The treasurer will be from the state hosting the annual meeting.
Chair
The chair shall be the chief executive officer of the committee and shall preside at all meetings of the committee leadership.
Vice-Chair
The vice-chair shall serve as an executive officer during the absence or temporary incapacity of the chair. The vice-chair shall serve at all times in an advisory capacity on matters relating to subcommittee operations.
Secretary
The secretary shall keep minutes for all meetings of the committee leadership and of any official action taken by the membership. The secretary shall also be the custodian of the historical records of the organization as defined by the Board.
Treasurer
The treasurer (ex-officio non-voting) shall be the custodian of the funds of the committee. The treasurer shall collect all money paid to the committee, and shall pay all bills upon proper proof that they are appropriate obligations of the committee, keeping accurate records thereof. At the annual meeting the treasurer shall make a full and complete statement of receipts and disbursements of the committee to the officers together with the balance of funds on hand as of the report date. The treasurer shall not commingle the funds of the committee with personal funds. The committee leadership shall determine annually the appropriate financial audit, review or compilation of the financial records of the committee.
Section 1
The committee leadership members shall serve a maximum of two consecutive two-year terms in any one office. Committee chair, vice-chair and secretary may be appointed to succeed themselves for additional two years.
Section 2
To ensure continuity and consistency, the Member Departments shall consider the concepts of geographical distribution and progression in selection of officers.
Section 3
A subcommittee may be established by the chair of a committee, with approval from the Strategic Management Committee. A subcommittee is a permanent subdivision charged with a specific field or topic within that committee’s purview.
A task force may be established by a committee chair as a temporary, “ad hoc” group to address a specific short-term, priority task or activity. The committee chair shall advise the Strategic Management Committee of the establishment of any task force.
Subcommittees
The Peer Review Subcommittee
The Peer Review Subcommittee conducts Peer Reviews of States that requested them so they can be in compliance with the Yellow Book. The Peer Review subcommittee operates under its own formal written bylaws to foster independence for the auditors and the COMMITTEE ON INTERNALANDEXTERNAL AUDIT.
The purpose of the Peer Review Program is to develop and maintain objective and independent peer reviews that will enable highway and transportation audit groups to improve the quality of their organizations and the audits they perform and determine whether:
- The group’s internal quality control system is in place and operating effectively; and
- Established policies and procedures and applicable auditing standards are being followed in its duties
Structure
Panel is comprised of five persons, plus the Past Chair in an advisory capacity.The current chair provides the direction of work and guidance for the Peer-Review Committee.
Dave Campbell Quality Award (DCQA) Subcommittee
The Dave Campbell Quality Award (DCQA) is presented by the AASHTO Administrative Subcommittee on Internal and External Audit in recognition of significant contributions to the State DOT community. Recipients shall be members of the State DOT Audit community (public sector) and may be either an individual or a group. Significant contributions may be based on either a specific project or an overall body of work encompassing multiple years or even an entire career.
Structure
Panel is comprised of a Committee officer representative (Secretary Position) and other members as the officer elects to have on the subcommittee.
Internal Audit Guide Subcommittee
The goal of this subcommittee is to keep this guide current and relevant. The purpose of this audit guide is to provide a tool that can be used by individual State internal auditors and public accounting firms that perform audits of transportation programs.
Structure
Panel is comprised of volunteers from the membership.
Uniform Audit and Accounting Guide Subcommittee
The goal of the subcommittee is to assure this guide is current and relevant.
The purpose of the audit guide is to provide a tool that can be used by individual state auditors, consulting firms, and public accounting firms that perform audits of consulting firms. The primary focus of the guide is auditing and reporting on the indirect costs and resultant overhead rates of consultants who perform engineering and engineering-related work for State Highway Agencies.
This guide is not intended to be an auditing procedures manual but rather a guide that will assist individuals in understanding terminology, policies, audit techniques, and sources for regulations and specific procedures.
Structure
Panel is comprised of volunteers from the membership.
AASHTO-ACEC Subcommittee on Audit
The goal of the AASHTO-ACEC Subcommittee on Audit is to establish and maintain a mutual understanding and communication of the cost accounting principles and auditing procedures related to consultant engineering services on transportation projects, among the member agencies and firms. This group meets annually at the Internal/External Audit Committee meeting. All state members are invited to attend and share opinions and concerns and issues alongside the ACEC representatives.
Structure
Panel is comprised Committee members and those assigned by ACEC to attend.
Current Taskforce
Innovative Audit Task Force
The goal of this task force is to explore new ideas, processes and technology. The purpose of this group is to provide more efficient and effective ways to audit, therefore saving both audit time and money when performing audits of transportation programs.
Structure
Panel is comprised of volunteers from the membership.
Reporting
The COMMITTEE ON INTERNAL AND EXTERNAL AUDITshall report to the Agency Administration Managing Committee on all matters.
Meetings and Voting
The committee leadership Meetings
Section 1
The committee leadership shall conduct all of the business affairs of the subcommittee when the annual meeting is not in session.
Section 2
The committee leadership shall meet in person, by teleconference or by telephone conference call.
Section 3
All three members shall constitute a quorum for the conduct of business at a meeting. A simple majority rules for the adoption of any resolution or motion.
Section 4
In the event of the inability of an officer to perform the duties of the office for an extended period or the resignation of an officer, the remaining committee leadership shall appoint a new member to serve until the next annual meeting.
Annual Meetings
There shall be an annual meeting of the subcommittee. The site shall be determined by a vote of the membership, two years in advance of the meeting. Preference will be given to geographical distribution. Special meetings may be held at a time and place established by the committee leadership.
The FHWA liaison and the USDOT IG or a liaison from that group shall be invited to all annual meetings.
Following the annual meeting, a closeout shall be held by the host state, the next year’s host state and the officers of the subcommittee.
Voting
Only members of the subcommittee shall be eligible to vote on matters before the subcommittee. A vote will be taken of all members present at the annual meeting. Except as otherwise specified herein, all votes shall be by simple majority. Each member shall have one vote and may delegate the vote to be cast on their behalf.
In the event that the voting committee member is unable to serve, each Member Department may designate, by electronic notification or letter to the AASHTO committee staff liaison, prior to each committee meeting, the individual who shall serve as the Member Department's representative on the committee.
Nominations for Officer
The committee leadership shall select and place in nomination at the annual meeting at least one candidate for each vacated officer. In addition to nominations made by the board, nominations may be made from the floor. Confirmation must be received from each candidate that they will serve if elected.
Strategic Plan, Annual Achievements Document, and Annual Work Plan
The committee shall establish a strategic plan and a work plan to help guide committee activities. The strategic plan shall be consistent with the AASHTO goals and objectives as outlined in the Association’s strategic plan. At a minimum, the committee’s strategic plan will be reviewed and updated as needed when AASHTO completes a new strategic plan.
The committee will maintain, at a minimum, a one year work plan that describes the activities that will be implemented, the individual(s) or subgroups overseeing implementation, and a schedule for completion. The work plan shall be submitted to the Strategic Management Committee prior to the AASHTO annual meeting each year.
Annual accomplishment reports shall highlight the accomplishments of the committee since the last AASHTO annual meeting, and shall be submitted to the Board of Directors and the Strategic Management Committee prior to the AASHTO annual meeting each year.
Ethics
All meetings of the committee and its steering committee, subcommittee(s), task force(s), and technical committee(s) will be conducted in accordance with the AASHTO policies governing conflicts of interest.
Amendments
The COMMITTEE ON INTERNAL AND EXTERNAL AUDITcharter may be amended by a two-thirds affirmative vote of the committee membership and then a two-thirds affirmative vote by the Committee leadership.