Achieving our mission
Presented to Line Staff
INTERNAL CONTROLSWhat are they?
INTERNAL CONTROLS are the integration of the activities, plans, attitudes, policies and efforts of the people of an organization working together to provide reasonable assurance that the organization will achieve its mission.
Simply put -
What Is Internal Control
Internal Controls are actions taken to make sure the right things happen ---
-- and the wrong things don’t.
What is Internal Control
Internal Control System
Purpose 1To promote orderly, economical,
efficient, and effective operations and to produce quality products and
services consistent with theorganization’s mission.
DefinitionInternal controls or an internal
control system are the integrationof the activities, plans, attitudes,policies and efforts of the people
of an organization which, workingtogether, provide a reasonable
assurance that the organizationwill achieve its mission.
Purpose 2To safeguard resources against loss
due to waste, abuse,mismanagement, errors, and fraud.
Purpose 3To ensure adherence to laws,
regulations, contracts andmanagement directives.
Purpose 4To develop and maintain
reliable financial andmanagement data and to
accurately present that datain timely reports.
Purpose 5
Accomplishment of the campus’ mission, pulling together all the goals and
objectives throughout the campus.
What is the Purpose of
Compliance with laws and policies
Accomplishment of mission
Relevant and reliable data
Economical and efficient use of resources
Safeguard assets
Who is Responsible forInternal Control
Everyone in an organization has responsibility for internal control.
Senior Management sets the “tone at the top” that affects integrity, ethics and other
factors of a positive control environment.
Internal Control SystemSystem Components
Comm
unic
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n Information
It’s Not All About the CashInternal controls are most commonly
associated with money and accountability. However, internal controls should be associated with tasks all of us perform everyday.
Following are examples of what can go wrong with everyday tasks, and controls to prevent the problems from developing.
Internal Control and Everyday TasksTelephone Calls
What can go wrong: Unauthorized calls No one to answer telephones Wrong information given
Internal Controls: Utilize voice mail Provide staff with training, reference materials and
updated information Policy on telephone use
Internal Control and Everyday TasksData Entry
What can go wrong: Erroneous Entries Unauthorized entries and overrides Data not up-to-date
Internal Controls: Provide staff with data entry training and reference
manuals; proof data reports against actual records Use passwords, change passwords periodically, test
access privileges periodically Ensure all transactions are authorized
Internal Control and Everyday Tasks Supplies and Equipment
What can go wrong: Theft or misuse Running out of supplies Equipment breakdown
Internal Controls: Secure storage area; perform periodic inventories for
equipment; follow procedures for surplus equipment Provide training on use of equipment Follow manufacturers’ recommended maintenance
schedules Periodically check supply levels
Control ActivitiesControl Activities are the tools, both
manual and automated, that help prevent or reduce the risks that can impede accomplishment of the organization’s mission.
Commonly used control activities:DocumentationApproval and authorizationSupervisionReportingVerification
Control Activities
Examples of common SUNY controls: Policies regarding student advisement Registration policy, including add or drop Grade submission requirements Procedures for degree clearance Financial aid guidelines Record retention schedules Payroll distribution policy Travel regulations Classified and professional employment
procedures Work order request policy Uniform chart of accounts
Who is Responsible forInternal Control
Everyone in an organization has responsibility for internal control.
Who Is Responsible ForInternal Control
Your role as an employee is accomplished by:
Fulfilling the duties and responsibilities established in your job description
Meeting applicable performance standards Attending education and training programs to
increase awareness and understanding Taking all reasonable steps to safeguard assets
against waste, loss, and unauthorized use Reporting breakdowns in internal control systems to
your supervisor
ConclusionThe people of an
organization, functioning as a team, set the limits for how good an organization will be. Internal controls are those elements of our day-to-day work activities that help ensure success.