Auxiliary Standard Operating Procedures


SUBJECT:

Internal Controls

SOURCE:

Auxiliary Accounting, Financial Management Services

DATE ISSUED:

June 2009

ASOP NO:

23.0 

RATIONALE:

To assist Auxiliary and Service Center units in understanding Internal Control best practices.

ASOP:

Stringent internal controls are essential for the efficient functioning of an auxiliary unit. Such controls improve a unit’s financial reporting reliability, safeguard its assets and records, and also help comply with regulatory agencies such as the State Board of Accounts, in addition to university management.

                                   

Managers, not auditors, must establish and maintain the unit’s controls as leadership by example takes precedence. Internal controls are not just manuals and policies, but are affected by people at all levels of the unit. The control process forms the means to an end – to provide management with reasonable assurance that the goals and objectives it believes important to the unit will be met.

 

Control procedures range from inventory and deposit reconciliation to personnel management and technology assessments. A summary of best practices and considerations can be accessed here - http://www.indiana.edu/~iuaudit/controls.shtml

CROSS

REFERENCE:

Policy I-1, Role of Fiscal Officer, Account Manager, and Account Supervisor

Policy VI-121, Establishing and Generating Revenue Producing Activity (RPA)

Policy I-470, Internal Controls

Conflict of Interest Policy

Who is my Auxiliary Consultant?

Internal Audit Internal Controls

RESPONSIBLE

ORGANIZATION:

Financial Management Services, Central Campus Administration, and Reporting Auxiliaries and Service Centers