In general terms, internal controls are simply good business practices. They include anything which serves to safeguard University assets or to improve the effectiveness and efficiency of operations. Every employee is responsible for ensuring that established internal controls are followed and applied. Internal auditors evaluate the effectiveness of control systems, monitor control systems, and contribute to ongoing effectiveness of control systems. External auditors review control systems for impact they have on financial reporting and compliance with requirements of external agencies.
Duties are divided so that no one person has complete control over a key function or activity.
Responsibility for custody of assets is separated from the related recordkeeping. Records are examined and reconciled to determine that transactions were properly processed and approved. Well trained and supervised employees help ensure that control processes function properly. Costs associated with control processes should not exceed expected benefits. Payroll checks and Surepay statements should be distributed by an employee not involved in updating the PPS or for preparing or approving payroll time sheets.