The mission, authority, independence, standards and responsibilities of the Lawrence Berkeley National Laboratory (LBNL) Internal Audit Services (IAS) Department outlined in this Audit Charter are hereby approved by the Laboratory Director.
Internal Auditing is an independent and objective assurance and consulting activity that is guided by a philosophy of adding value to improve the operations of LBNL. It assists Laboratory management in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the organization’s risk management, control and governance processes.

Mission
The mission of IAS is to assess and monitor the Laboratory community in the discharge of their oversight, management, and operating responsibilities in relation to governance processes, systems of internal controls, and compliance with laws, Department of Energy (DOE) regulations, contracts, and Laboratory and University of California (UC) policies and procedures. This is accomplished by providing relevant, timely, independent, and objective assurance, advisory, and investigative services using a systematic, disciplined approach to evaluate risk and improve the effectiveness of control and governance processes.

Authority
IAS, with strict accountability for confidentiality and safeguarding of records and information, has been granted authority through this charter and the UC Internal Audit Management Charter approved by the Regents of the University of California. IAS functions under the policies established by the Regents and Laboratory management under delegated authority. IAS is authorized full, free and unrestricted access to information including records, computer files, property, and personnel of the Laboratory required in the performance of audits and investigative services. The work of IAS is unrestricted except where limited by law. IAS is free to review and evaluate all policies, procedures and practices of any Laboratory activity, program or function. However, IAS is a staff function and has no direct authority over, or responsibilities for, any of the activities reviewed. Therefore, the internal audit review and appraisal process does not, in any way, relieve other persons in the organization of the responsibilities assigned to them.

Organization
The IAS Manager reports functionally to the UC Regents through the University’s Senior Vice President/Chief Compliance & Audit Officer, and reports administratively to the Laboratory Director. The Audit Committee serves in an advisory capacity to the Laboratory Director in providing overall guidance and oversight of the Internal Audit function.

Independence & Objectivity
To permit the rendering of impartial and unbiased judgment essential to the proper conduct of audits, internal auditors will be independent of the activities they audit.
Internal auditors will have no direct operational responsibility or authority over any of the activities audited. Accordingly, they will not implement internal controls, develop procedures, install systems, prepare records, or engage in any other activity that may impair the internal auditor’s judgment or independence.
Internal auditors must exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors must make a balanced assessment of all the relevant circumstances and not be unduly influenced by their own interests or by others in forming judgments.
Internal auditors have unrestricted access to the Laboratory Director, Laboratory Audit Committee, University’s Senior Vice President and Chief Compliance and Audit Officer, UC Regents, and the University Laboratory Management Office for significant and important matters which may require their immediate attention. Internal Auditors shall take directly to the University’s Senior Vice President and Chief Compliance and Audit Officer, any credible allegations of significant wrongdoing (including any wrongdoing for personal financial gain) by or about the Laboratory Director or a Laboratory executive, or any other credible allegations that, if true, could cause significant harm or damage to the reputation of the University, DOE or the Laboratory. Any such matters will be reported to The Board of Regents' or Committee on Compliance & Audit Chair at the discretion of the University Chief Compliance & Audit Officer. These reporting relationships ensure departmental independence, promote comprehensive audit coverage and ensure adequate consideration of audit recommendations.

Professional Standards
IAS staff will serve the Laboratory in a manner consistent with the policies established by the University’s Senior Vice President and Chief Compliance and Audit Officer and Laboratory Directorate, including procedures outlined in the UC Internal Audit Manual (http://www.ucop.edu/audit/manuals/auditmanual.pdf). At a minimum, IAS shall comply with the International Standards for the Professional Practice of Internal Auditing promulgated by the Institute of Internal Auditors and the professional Code of Ethics of the Institute of Internal Auditors.
The LBNL audit function is required by IIA standards to undergo an independent external peer review every five years. These peer reviews are administered by the DOE Contractors Internal Audit Directors (CIAD) group.

Responsibilities
The responsibilities of IAS include, but are not limited to, the following:

• Examining and evaluating the adequacy, effectiveness and performance of internal controls.
• Reviewing the reliability and integrity of financial and operating information, and the means used to compile and report such information;
• Reviewing systems established to ensure compliance with Laboratory policies, procedures, contractual requirements, and applicable laws and regulations;
• Reviewing the means of safeguarding assets, and as appropriate, verifying the existence of assets;
• Evaluating the adequacy of controls of significant computerized information technology systems;
• Appraising the economy and efficiency with which resources are employed;
• Reviewing operations and programs to ascertain if results are consistent with established objectives and goals and if operations and programs are being conducted as planned;
• Reviewing specific operations at the request of the Audit Committee or Laboratory management;
• Monitoring and evaluating the effectiveness of the organization’s risk management system;
• Communicating concerns, recommendations, and corrective actions related to audited activities to Laboratory management and the Audit Committee in a timely manner,
• Providing coordination and interfacing with external audit review groups.
• Performing investigations to determine if allegations of fraud, conflict of interest or improper governmental activity can be substantiated.
• Conducting post-award and post-performance audits when requested by Procurement.
• Serve on and provide administration for a minimum of three Audit Committee meetings per year.

Click here to view a copy of the signed Audit Charter