1. Buffalo State College Internal Control Program Presented to: Buffalo State College Line Staff Delivered by: BSC IC Program & Department Managers

2. Internal Controls… Improve the likelihood that the right things happen and the wrong things do not Will succeed or fail depending on the attention which people give it Are a process, not just a set of rules Impact every aspect of our campus

3. College Mission A well defined mission provides direction and stability to an organization Buffalo State College is committed to the intellectual, personal, and professional growth of its students, faculty, and staff. The goal of the college is to inspire a lifelong passion for learning, and to empower a diverse population of students to succeed as citizens of a challenging world. Toward this goal, and in order to enhance the quality of life in Buffalo and the larger community, the college is dedicated to excellence in teaching and scholarship, cultural enrichment, and service.

4. Accountability Key component at all levels for effective organization Everyone has a role to play in an internal control system It’s also the law - New York State Internal Control Act

5. Communication Communication is the exchange of useful information between and among people and organizations to support decisions and coordinate activities Communication should be timely, useful and complete Lines of communication should be up, down, and across an organization Staff should be able to communicate problems and suggestions

6. Control Activities Tools or processes - help prevent or reduce the risks that can impede accomplishment of the College's objectives and mission Can be manual or automated

7. Examples of Control Activities Admission process Purchase Requisition process Accounts Payable process Property Control process Personnel process Payroll Timekeeping process

8. Risk Risks are events that threaten the achievement of the College’s objectives and mission. We must ensure each risk is assessed and handled properly. The cost of internal control should not exceed the benefit derived. BenefitsCosts Risk

9. Types of Controls AUTHORIZATION / APPROVALS VERIFICATION SEPARATION OF DUTIES SUPERVISION / MONITORING SECURITY REPORTING

10. Who Is Responsible for Internal Controls? EVERYONE Senior management: Makes sure they are in place in all areas Employees: Follow controls and report problems or improvements

11. Employee Responsibilities Fulfilling your duties and responsibilities stated in your job description Meeting performance standards Attending education and training programs Taking steps to protect assets against waste, loss, unauthorized use and theft Reporting breakdowns in internal control systems to your supervisor Looking for more efficient ways to perform the controls Not using your official position to secure unwarranted privileges

12. Manager Responsibilities Maintaining an office environment that encourages the design of internal controls Documenting policies and procedures that are to be followed in performing office functions Identifying the control objectives for the functions and implementing cost effective controls designed to meet those objectives Regularly testing the controls to determine if they are performing as intended

13. Internal Control Process Identify Functions Assess Risk / Vulnerability Conduct Internal Control Reviews Take Corrective Action

14. Internal Control Review Checks Whether Controls Work by: Evaluating if Controls Are Adequate AND Testing Whether Procedures Are Followed

15. Internal Control Testing Makes sure controls “on paper” are: Actually being used as designed Really meet the control objectives

16. Areas with Weak Controls Some signs of weak controls: Cannot meet deadlines for supplying information Incorrect or unclear information Unusually high employee turnover Crowded, poorly organized files Poor employee morale

17. Why Is Internal Control Important? C OMPLIANCE with applicable laws/policies A CCOMPLISHMENT of the entity’s mission R ELEVANT and reliable data E CONOMICAL and efficient use of resources S AFEGUARD assets

18. Summary Overview of Internal Controls All Employees Have Responsibility for Internal Controls It’s Not Rocket Science It’s Not Just a Good Idea – It’s the Law! Please complete the 5 question survey. Thank you!5 question survey