Achieving our mission

Presented to Line Staff

INTERNAL CONTROLS
What are they?

What Is Internal
Control
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 dont.

Internal Control System

Purpose 1
To promote orderly, economical,
efficient, and effective operations
and to produce quality products and
services consistent with the
organizations mission.
Purpose 2
To safeguard resources against loss
due to waste, abuse,
mismanagement, errors, and fraud.

Definition
Internal controls or an internal
control system are the integration
of the activities, plans, attitudes,
policies and efforts of the people
of an organization which, working
together, provide a reasonable
assurance that the organization
will achieve its mission.

Purpose 5
Accomplishment of the campus mission,
pulling together all the goals and
objectives throughout the campus.

Purpose 3
To ensure adherence to laws,
regulations, contracts and
management directives.
Purpose 4
To develop and maintain
reliable financial and
management data and to
accurately present that data
in timely reports.

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 for

Internal 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 System

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System Components

Its Not All About the

Cash
Internal 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

Tasks
Telephone 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

Tasks
Data 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 Activities
Control Activities are the tools, both

manual and automated, that help prevent

or reduce the risks that can impede
accomplishment of the organizations
mission.
Commonly used control activities:
Documentation
Approval and authorization
Supervision
Reporting
Verification

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 for

Internal Control
Everyone in an organization has responsibility
for internal control.

Who Is Responsible For

Internal 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

Conclusion
The 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 dayto-day work activities
that help ensure
success.