OBFS coordinates with the Office of University Audits to create and promote policies and procedures providing adequate controls for the management of the University's business and assets.
Internal control procedures are an integral part of financial and business processes at the University. Control procedures must:
Safeguard University assets
Check the accuracy and reliability of accounting data
Promote operational efficiency and effectiveness
Protect University personnel
Ensure adherence to prescribed managerial policies
Ensure compliance with applicable policies and regulations
Comply with the State of Illinois Fiscal Control and Internal Auditing Act of 1989
All campus administrators who develop, operate, and supervise financial systems are responsible for creating and implementing control procedures. All internal control procedures are subject to the review of the Executive Director of the Office of University Audits or his or her delegate.
Good internal control systems include several elements. First, organizational plans provide appropriate segregation of functional responsibilities. Second, authorization and record-keeping procedures give reasonable accounting control over assets, liabilities, revenues, expenses, and other changes in the balance of funds. Third, practices ensure a high degree of compliance with approved authorization and record-keeping procedure. Finally, employees have capabilities sufficient to execute their responsibilities.
Exception to Control Procedures
All internal controls should be balanced in the light of their economic utility, practicability, and protection of personnel. Where the cost of protection would far outweigh possible losses or where proposed controls would cause gross inefficiencies, such controls may not be feasible and other alternatives may be more advisable.
Administrators and supervisors must constantly review internal control systems to assure:
Prescribed policies are being interpreted properly and carried out accordingly
Changes in operating conditions have not made the procedures cumbersome, obsolete, or inadequate
Corrective measures are taken promptly when system breakdowns appear
Last Updated: January 22, 2014