Internal Controls 101 RDML K. Taylor | DHS CFO Brief | 25 JAN 2010 Assistant Commandant For Resources.

Slides:

Advertisements

Similar presentations

1 AUDIT AND AUDIT RESOLUTION Peg Rosenberry, Director of Grants Management Claire Moreno, Audit Liaison, Office of Grants Management 9/18/2009 AMERICORPS.

Advertisements

OPERATING EFFECTIVELY AT WESD. What is Internal Control? A process designed to provide reasonable assurance the organizations objectives are achieved.

Management Internal Control Program Presented by: USU Manager's Internal Control Program Team Office of Accreditation and Organizational Assessment.

An Internal Control Overview

Chapter 7 Control and AIS Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1.

Control and Accounting Information Systems

Agency Risk Management and Internal Control Standards Presentation to the Board of Visitors November 14, 2014.

Internal Control.

Management Accountability and Control

1 INTERNAL CONTROLS A PRACTICAL GUIDE TO HELP ENSURE FINANCIAL INTEGRITY.

The Islamic University of Gaza

OMB Circular A-123 – Management’s Responsibility for Internal Control Policy Applicability Sources of Information Assessment, Documentation and Reporting.

Anita Hairston DOI Office of Acquisition and Property Management

Chapter 7 Control and AIS Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 7-1.

Standar Pekerjaan Lapangan: Pemahaman Memadai atas Pengendalian Intern Pertemuan 5.

6-1 McGraw-Hill/Irwin ©2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 Internal Control Evaluation: Assessing Control Risk.

IDENTIFYING RISKS AND CONTROLS IN BUSINESS PROCESS

Internal Control. COSO’s Framework Committee of Sponsoring Organizations 1992 issued a white paper on internal control Since this time, this framework.

Expanded Version of COSO a presentation by Steve Wadleigh Expanded Version of COSO a presentation by Steve Wadleigh Standards for Internal Control in the.

Internal Control in a Financial Statement Audit

Internal Control. COSO’s Framework Committee of Sponsoring Organizations 1992 issued a white paper on internal control Since this time, this framework.

Purpose of the Standards

Presented By: Donna Denker, CPA Donna Denker & Associates.

Achieving our mission Presented to Line Staff. INTERNAL CONTROLS What are they?

Sarbanes-Oxley Project Summary of COSO Framework Presented by Larry Dillehay & Scott Reitan Parkfield Group LLC.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Statement on Auditing Standards (SAS) 112 Communicating Internal Control Related Matters Identified in an Audit.

Elements of Internal Controls Preventing Fraud, Waste, and Abuse in Urban and Rural Transit Systems.

INTRODUCTION TO PUBLIC FINANCE MANAGEMENT Module 3.2 -Internal Control & Audit.

Internal Control and Control Self-Assessment

An Educational Computer Based Training Program CBTCBT.

Presented to President’s Cabinet. INTERNAL CONTROLS are the integration of the activities, plans, attitudes, policies and efforts of the people of an.

AICPA SAS 112 on Internal Controls: Implications and Impacts on State Agencies and Auditors Presented by Frank Crawford, CPA Crawford & Associates, P.C.

ARMICS Randy Sherrod, Internal Audit Manager – Department of Behavioral Health and Developmental Services.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Implementation Issues of Sarbanes-Oxley CASE Presentation September 23, 2004 By Denise Farnan.

Session 1 & 2. 2 COSO, the Committee of sponsoring organizations of the tradway commission is a private sector institute established in Committee.

Internal controls. Session objectives Define Internal Controls To understand components of Internal Controls, control environment and types of controls.

Chapter 5 Internal Control over Financial Reporting

Considering Internal Control

Internal Control in a Financial Statement Audit

NO FRAUD LEFT BEHIND The Effect of New Risk Assessment Auditing Standards on Schools Runyon Kersteen Ouellette.

Internal Control in a Financial Statement Audit

Agency Risk Management & Internal Control Standards (ARMICS)

Internal Controls and Fraud Convery Describe an Internal Controls System and its elements Identify specific Internal Control issues in a NPO Consider.

The Audit as a Management Tool Vermont State Auditor’s Office – April 2009.

Webinar for FY 2011 i3 Grantees February 9, 2012 Fiscal Oversight of i3 Grants Erin McHughJames Evans, CPA, CGFM, CGMA Office of Innovation and Improvement.

Management Advisory and Compliance Services Towson University Management Advisory and Compliance Services Internal Controls.

A Guide for Management. Overview Benefits of entity-level controls Nature of entity-level controls Types of entity-level controls, control objectives,

Presented to Managers. INTERNAL CONTROLS are the integration of the activities, plans, attitudes, policies and efforts of the people of an organization.

S5: Internal controls. What is Internal Control Internal control is a process Internal control is a process Internal control is effected by people Internal.

Purchasing Forum – May The integration of the activities, plans, attitudes, policies, and efforts of the people of an organization working together.

Financial Management & Internal Control for Utility Companies Julia Barber, CPA and Sherman, Barber & Mullikin, CPAs Madison, IN

©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Section 404 Audits of Internal Control and Control Risk Chapter.

Copyright © 2007 Pearson Education Canada 9-1 Chapter 9: Internal Controls and Control Risk.

Chapter 5 Evaluating the Integrity and Effectiveness of the Client’s Control Systems.

Internal Controls For Municipalities Vermont State Auditor’s Office – August 2008.

©©2012 Pearson Education, Auditing 14/e, Arens/Elder/Beasley Considering Internal Control Chapter 10.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter

Lecture 5 Control and AIS Copyright © 2012 Pearson Education 7-1.

Governance, risk and ethics. 2 Section A: Governance and responsibility Section B: Internal control and review Section C: Identifying and assessing risk.

Chapter 6 Internal Control in a Financial Statement Audit McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Auditors’ Dilemma – reporting requirements on Internal Financial Controls under the Companies Act 2013 and Clause 49 of the Listing agreement V. Venkataramanan.

SUNY Maritime Internal Control Program. New York State Internal Control Act of 1987 Establish and maintain guidelines for a system of internal controls.

SUNY Maritime College Internal Control Program. New York State Internal Control Act of 1987 Establish and maintain guidelines for a system of internal.

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at.

Internal control objectives

Internal Controls Towson University

The Elements of appropriate Internal Controls

Internal Control Internal control is the process designed and affected by owners, management, and other personnel. It is implemented to address business.

Presentation transcript:

Internal Controls 101 RDML K. Taylor | DHS CFO Brief | 25 JAN 2010 Assistant Commandant For Resources

1 Internal Controls Overview What are Internal Controls? Requirements for Internals Controls Responsibility for Internal Controls COMDT’s Annual Assurance Statement

Assistant Commandant For Resources 2 Examples of Internal Controls Checklists Reconciliations Inventories Segregation of Duties Reviews / Approvals Policy **Note: Internal Controls must be documented through policy and procedures

Assistant Commandant For Resources 3 Requirements for Internal Controls Federal Managers Financial Integrity Act of 1982 (FMFIA) OMB Circular A-123 Management Responsibility for Internal Controls DHS Financial Accountability Act of 2004

Assistant Commandant For Resources 4 The Five Standards of Internal Controls

Assistant Commandant For Resources 5 Internal Control Standards Defined: Control environment(values, ethics, integrity, commitment to competence) Risk assessment(inherent and direct) Control activities(policies and procedures) Information and communication (people, processes and technology) Monitoring(management, internal auditors, EMC- ICARB, SAT, etc.)

Assistant Commandant For Resources 6 Benefits of Internal Controls Minimizes risks Provides more reliable information Allows for more timely reporting Highlights deficiencies in processes Reduces audit effort and cost Improves support for budget requests “Better controls – not more controls”

Assistant Commandant For Resources 7 Concepts of Risks Risk: the chance of something happening that will have an impact on objectives. It is measured in terms of consequences and likelihood. Impact/Consequence: the outcome of an event expressed qualitatively or quantitatively – being a loss, injury, disadvantage, or gain. Likelihood: a description of a probability or frequency. Control Adequacy: How strong is the control compared to the risk? Residual Risk: Risk can never be reduced to zero, but strong controls reduce the likelihood and impact to an acceptable level

Assistant Commandant For Resources 8 Three Important Questions Related to Risks and Controls Have I identified my risks? Do my controls cover my risks? Are my controls in place and working?

Assistant Commandant For Resources 9 An Effective Internal Control Program provides reasonable assurances that: Policies are followed and objectives are met Programs achieve intended results Resource use is consistent with laws, regulations and policies Assets safeguarded against waste, fraud, abuse and mismanagement Reliable information obtained, maintained, reported, and used for decision making IT systems conform to established standards.

Assistant Commandant For Resources 10 Responsibility for Internal Controls Those Charged With Governance: is defined as: “the person(s) with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity. This includes overseeing the financial reporting and disclosure process.” Governance is a collective responsibility meaning that everyone in an organization has some responsibility for Internal Control; however, MANAGEMENT is responsible.

Assistant Commandant For Resources 11 Annual Assurance Statement Provides DHS with assurances that internal controls have been assessed/tested and the identifies any Material Weaknesses and Reportable Conditions noted. Submitted to DHS 30 Sep Four Required Separate Assurances –Internal Controls Over Financial Reporting –Section 2 – Operations and Compliance with Laws and Regulations –Section 4 – Conformance with System standards –Reports Consolidation – Performance data

Assistant Commandant For Resources 12 The Bottom Line! “The proper stewardship of Federal resources is an essential responsibility of agency managers and staff. Federal employees must ensure that federal programs operate and federal resources are used efficiently to achieve desired objectives. Resources must operate and resources must be used consistent with agency mission, in compliance with laws and regulations, and with minimal potential for waste, fraud, and mismanagement.” (OMB Circular No. A-123)