An internal control system is the process that management uses to provide reasonable assurance that the University's goals and objectives will be achieved. It is the management of business risks and is a dynamic process that changes as personnel and circumstances change. The system includes organizational design, written policies and procedures, operating practices and physical barriers to protect assets and all personnel. The system should be designed to discourage occurrences of errors or irregularities and to identify, within a reasonable time frame, errors or irregularities that may occur.
The internal control system provides for safeguarding of assets, proper recording of transactions and the efficient and effective accomplishment of the University's goals and objectives including compliance with federal, state and University rules and regulations.
The manager, who is responsible for the accomplishment of goals and objectives, is also responsible for establishment; maintenance and monitoring of the internal control system that helps ensure the accomplishment of those goals and objectives. He or she is responsible for the sound financial condition of the unit, protection of the University's assets, including its human resources, and compliance with federal, state, and University rules, regulations and procedures. He or she must ensure that the funds entrusted to the unit are used appropriately.
The manager may delegate some of the related duties but cannot delegate accountability and responsibility.