1. Achieving our mission Presented to Line Staff

2. INTERNAL CONTROLS What are they?

3. 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

4. Internal Controls are actions taken to make sure the right things happen --- -- and the wrong things don’t. What is Internal Control

5. Internal Control System Purpose 1 To promote orderly, economical, efficient, and effective operations and to produce quality products and services consistent with the organization’s mission. 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. 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 2 To safeguard resources against loss due to waste, abuse, mismanagement, errors, and fraud. 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. Purpose 5 Accomplishment of the campus’ mission, pulling together all the goals and objectives throughout the campus.

6. 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

7. 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.

8. Monitoring Assess internal control performance Control Activities Tools that help prevent or reduce risk Risk Assessment Identification and analysis of relevant risks to achievement of objectives Control Environment Sets the tone for the organization The foundation for all other components of internal control Internal Control System System Components Communication Information

9. It’s 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.

10. 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

11. 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

12. 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

13. Control Activities Control 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:  Documentation  Approval and authorization  Supervision  Reporting  Veri fication

14. 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

15. Who is Responsible for Internal Control Everyone in an organization has responsibility for internal control.

16. 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

17. 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 day-to-day work activities that help ensure success.