Internal Control Structure Oklahoma Municipal Power Authority s internal control structure includes numerous policies and procedures established to provide reasonable assurance that specific objectives will be achieved. OMPA s internal control structure provides reasonable assurance that errors and irregularities may be either prevented or discovered with reasonable promptness, thus assuring the reliability of the financial records. Internal control can be described as the overall plan of organization and the methods employed by OMPA to safeguard its assets, ensure the reliability of its accounting data, promote efficient operations and ensure compliance with established Authority policies. OMPA s internal control system consists of both administrative controls and accounting controls. Administrative control encompasses the procedures and recording functions that become the basis for management decisions.
Administrative controls promote operational efficiency and adherence to managerial policies.
Accounting controls are concerned with systems of authorization and approval, controls over assets, internal auditing and other financial matters. It is management s responsibility to establish and maintain an adequate system of internal accounting control, which assures that its objectives will be accomplished. The system provides for appropriate segregation of duties between the custody of assets and their accountability. Access to assets is permitted only in accordance with management s general or specific authorization. The recorded accountability for assets is compared with the existing assets at reasonable intervals, and appropriate action is taken with respect to any differences.