Internal Controls

An internal control system is the process that an administrator uses to provide reasonable assurance that the unit’s goals and objectives will be achieved. It is the management of business risks and is a dynamic process that changes as personnel and circumstances change. The system includes organizational design, written policies and procedures, actual operating practices, physical barriers to protect assets and all personnel. The system should be designed to discourage occurrences of errors or irregularities and to identify, within a reasonable time frame, errors or irregularities that may occur.

The internal control system encompasses a variety of internal controls such as background checks of prospective employees for sensitive positions to locking the door when the office is closed for the evening. Although the internal control system is to be developed and monitored by the unit administrator, the Office of Internal Audit (OIA) is available to assist in reviewing the internal control system and making suggestions for improvement.

The internal control system provides for safeguarding of assets, proper recording of transactions, and the efficient and effective accomplishment of the unit’s and university’s goals and objectives including compliance with federal, state, and university rules and regulations.

For a more in-depth walkthrough of Internal Controls, please reference the links below:

• Responsibility for Internal Controls
• The Importance of Good Internal Controls
• Components of Internal Controls
• Establishing Good Internal Controls
• Fraud

Additionally, please feel free to download the University Internal Control Checklist, to conduct a self-assessment of unit controls.

• Internal Controls Checklist