Title: Internal Controls
Date: December 2006
Responsible Officer: Assistant Vice President for Finance
- PURPOSE
This policy provides guidelines for implementation of internal control programs in accordance with state guidelines.
- AUTHORITY
The Board of Visitors has granted the President the authority to create and manage policies for the effective operation of the University. The State Comptroller requires each agency and institution to evaluate their operating environment, maintain adequate internal controls, and include a general statement regarding internal accounting controls in the annual financial report.
- DEFINITION
Internal controls:
Procedures included in a process for the specific purpose of providing reasonable, but not absolute, assurance that:- information generated will be reliable and complete;
- federal, state, university, and departmental policies, plans and procedures will be complied with;
- assets will be properly safeguarded; and
- goals and objectives will be accomplished in an efficient manner.
Types of internal control procedures include:
- proper authorization and approval;
- documented review of information for accuracy, completeness and validity;
- proper supervision;
- physical security of assets;
- written policies and procedures;
- process documentation;
- proper segregation of duties; and
- information security and assignment of access to information.
- APPLICABILITY
These procedures apply to critical processes at the university and to all employees of the university. - POLICY
The university will maintain adequate internal controls in compliance with state policies and procedures. - PROCEDURES
6.1 Department heads implement and maintain internal controls for their areas, and enlist the assistance of the Director of Audit and Management Services or Assistant Vice President for Finance.
6.2 Audit and Management Services periodically conducts internal audits as part of the audit plan approved by the Audit Committee of the Board of Visitors. During internal audits, Audit and Management Services evaluates the adequacy and effectiveness of internal controls for activities reviewed.
6.3 The Director of Audit and Management Services meets with the Audit Committee of the Board of Visitors each quarter to review internal audit reports, external auditors' management comments, and progress reports regarding deficiencies noted during audits
6.4 The Director of Audit and Management Services and the Assistant Vice President for Finance can advise department heads on how to incorporate internal controls into new and revised processes and systems.
- RESPONSIBILITIES
Division Heads
Ultimately responsible for ensuring that adequate internal controls are maintained in their respective divisions.
Academic and Administrative Department Heads
Exercises primary responsibility for maintaining adequate internal controls.
Assistant Vice President for Finance
Recommends internal control policy, develops and publishes procedures, and issues the statement concerning internal controls to accompany the university's financial statements.
Director of Audit and Management Services
Evaluates and issues opinions on controls for activities included in the scope of internal audits and performs an annual risk assessment update, which is used to develop long-range and annual audit plans. - SANCTIONS
Sanctions will be commensurate with the severity and/or frequency of the offense and may include termination of employment.
- EXCLUSIONS
None - INTERPRETATION
The authority to interpret this policy rests with the President, and is generally delegated to Assistant Vice President for Finance.
Approved by the President: November 20, 2002
Index Terms:
Audit
Internal Controls
Controls