Internal Controls

  • What are internal controls?

    Internal controls are the plan of organization and all of the methods (processes and procedures) adopted in an organization to safeguard its assets, check the accuracy and reliability of its accounting and reporting records, promote operational efficiency, and encourage adherence to policies. This definition recognizes that a system of internal control extends beyond the accounting and finance departments to all functions of the organization.

    The objectives of our internal control program are:

    • Successful achievement of the District’s mission
    • Accurate collection, maintenance and reporting of district data
    • Safeguarding of assets
    • Effective, efficient and economical programs and operations
    • Compliance with laws, regulations and policies

    Internal controls are everyone’s responsibility! At DCPS the internal control environment reflects management’s integrity and its commitment to ethical values. It begins with the School Board and is exemplified by the tone at the top as established by our Superintendent and communicated to all employees.

    A strong internal control program promotes:

    • Continuous improvement
    • Efficiency of operations
    • Effective communication
    • Accountability
    • Risk awareness and planning
    • Reliable reporting

    Internal control framework:

    The Committee of Sponsoring Organizations of the Treadway Commission (COSO) provided a common language regarding controls and created an integrated control framework for managing business risks. The framework consists of five interrelated components:

    • Control environment
    • Risk assessment
    • Control activities
    • Information and communication
    • Monitoring

    Requirements of Florida Statutes:

    Florida Statutes require that school districts establish and maintain internal controls designed to:

    • Prevent and detect fraud, waste, and abuse
    • Promote and encourage compliance with applicable laws, rules, contracts, grant agreements, and best practices
    • Support economical and efficient operations
    • Ensure reliability of financial records and reports
    • Safeguard assets
  • What is meant by fraud, waste and abuse?

  • How are internal controls classified?

  • What do good internal controls involve?

  • What can jeopardize internal controls?