1. Thank You to our Sponsors

2. Checks & Balances Internal Controls to Achieve a Successful Audit

3. Once Upon a Time…  Approximately $96,000  18 months  Mid 30s female  YMCA finance director and accountant

4. What are Internal Controls? …a process effected by an organization's structure, work and authority flow, and people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization's resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organization's resources Internal Control

5. What are Internal Controls? Separation of Duties: Checks & Balances Permissions

6. What are Internal Controls? Role Based Access Control Using Technology: DAXKO Operations DAXKO Accounting

7. Internal Controls Process Establish Environment Assess Risks Control Activities Monitor Performance

8. Establish Environment Assess Risks Control Activities Monitor Performance Establish Environment

9. A Receptive Environment Requires a Top Down Approach

10. Establish Environment Define Roles Assign Responsibilities Communicate Clearly

11. Establish Environment

12. Assess Risks Control Activities Monitor Performance Assess Risks

13. Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

14. Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

15. Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

16. Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

17. Assess Risks Vulnerability to TheftVulnerability to MistakesVulnerability to Data CompromiseVulnerability to Misrepresentation

18. Establish Environment Assess Risks Control Activities Monitor Performance Control Activities

19. Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

20. Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

21. Control Activities Prevention of Theft Allocate new apply one time adjustment permission Separate duties for shift close-outs and deposits Separate duties for invoice entry and posting Separate duties for check printing and signing Activities to Implement

22. Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

23. Control Activities Prevention of Mistakes Assign account permissions to increase simplicity Separate duties for entry and posting of journal entries Use importing feature to import entries Activities to Implement

24. Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

25. Control Activities Prevention of Data Compromise Restrict users to applicable branches or departments Restrict users to necessary major codes Activities to Implement

26. Control Activities Prevention of TheftPrevention of MistakesPrevention of Data CompromisePrevention of Misrepresentation

27. Control Activities Prevention of Misrepresentation Budget for Revenue before Expense Establish levels of review Encourage use of comments Lock down budget after board approval Activities to Implement

29. Establish Environment Assess Risks Control Activities Monitor Performance

30. Use the Event Log in DAXKO Operations and DAXKO Accounting to monitor performance

31. Accounts Payable General Ledger Budget Monitor Performance DAXKO Accounting

36. Review Establish Environment Assess Risks Control Activities Monitor Performance

37. Action Items Determine your Vulnerabilities Set Goals to Improve Internal Controls Utilize Roles and Permissions Establish Policies for Monitoring the Event Log Evaluate Processes on a Regular Basis