CHAPTER I

Rotary Code of Policies 421
January 2013
1. The general secretary is responsible for the establishment and maintenance of effective risk
management practices and a positive control environment by providing leadership, direction and
oversight to the senior managers who control and manage the business operations of the Secretariat.
The general secretary also provides direction to the general auditor in carrying out Board policy
regarding the internal audit program.
2. Senior and operational managers are responsible for the design, implementation, and maintenance
of specific internal control practices and procedures within their areas of supervision. These
managers are also responsible for providing to the general auditor, upon request, full and unrestricted
access to all activities, records, and personnel.
3. The general auditor is responsible to senior leadership and management for the following:
a. Evaluates and assesses the adequacy, efficiency, and effectiveness of the Secretariat's control
systems, risk management, and/or governance processes
b. Contributes to the organization's ongoing effectiveness
c. Reports of significant issues related to the processes for controlling the activities of the
Secretariat, including potential improvements to those processes
d. Information on the status and results of the annual audit plan and the sufficiency of auditing
services division resources
4. The auditing services division has responsibility to
a. Annually develop a flexible audit plan taking into account any risks or control concerns
identified by senior management and leadership, as well as projected benefits and costs of each
planned engagement
The plan is reviewed with the general secretary and Audit Committee for necessary revisions and
approval by no later than 30 June of each year. The approved plan shall be reviewed with the RI
Operations Review Committee at the next scheduled meetings.
b. Implement the approved annual audit plan including any special tasks, projects, or consulting
engagements requested and/or approved by the general secretary, the Audit Committee, and/or
the RI Operations Review Committee
c. As requested, assist in the investigation of significant suspected fraudulent activities within
the Secretariat and notify the general secretary, the Audit Committee, and/or the RI Operations
Review Committee of the results
d. Consider the scope of work of the external auditors and other third parties, as appropriate, for
the purpose of providing optimal audit coverage to the Secretariat
e. Receive, evaluate, and respond to requests from the president and the president-elect, the
Board of Directors acting collectively, the Audit Committee, the Trustees of The Rotary
Foundation acting collectively, the RI Finance Committee, the RI Operations Review
Committee, and the general secretary