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

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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.