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Internal Control Policy
Name of Policy
Internal Control Policy
Policy Number
XII. 1
Owners
Governance
Original Policy Date
03/11/2014
Cosigners
_______________________
Last Revised Date
_______________________
Other Related Regulatory Rules Laws & Policies Next Scheduled review Date
_______________________
Associated Procedures & Forms (Attachments)
_______________________
Versioning
_______________________
Cycle of Reviews
_______________________

Purpose

To describe the system of internal control at the University for providing assurance that efficiency is maintained in all operations and there is compliance with applicable laws and regulations.


Statement

1.     The system of internal control should ascertain that:

·        The University clearly communicates its established policies, plans and procedures.

·        The entire university is in compliance with these policies, plans and procedures as well as other governing regulations and laws.

·        Institutional assets are accounted for and safeguarded from losses and all kinds.

·        Information used for decision making is reliable.

·        All assigned responsibilities are carried out competently.

·        All applicable reporting requirements are met.

2.     Administrators with delegated approval authority e.g. Vice Rector, Deans, Directors, Chairs and Associate Chairs are responsible for establishing and supporting a system of internal controls within their areas of responsibility and for creating the control environment that encourage compliance with University Policies and Procedures.

3.     All University Colleges and Departments shall use attached the Self-Assessment Checklist to assess operations and identify risks and areas of non-compliance. The results of the Self-assessment shall be included in a report and submitted to the University Management.

4.     Results of the Self-Assessment shall be considered by the University Management and corrective actions taken if necessary.

Internal Control
Self-Assessment Checklist

The system of internal control should ascertain that:

  • The university clearly communicates its established policies, plans, and procedures.
  • The entire organization is in compliance with these policies, plans and procedures as well as other governing regulations and laws.
  • Institutional assets are accounted for and safeguarded from losses of all kinds.
  • Information used for decision making is reliable.
  • All assigned responsibilities are carried out competently.
  • All applicable reporting requirements are met.

This self-assessment checklist is intended for use by Academic and Administrative Leaders at the University to evaluate internal control in their areas of responsibility.
The checklist relates the following components of internal control:

  • The work environment and its commitment to ethical values, competence and transparency.
  • Assessment of Risk
  • Control Activities

Section I: Control Environment

No. Description of Assessment Factor Assessment
Weak   Strong
Comments
1 2 3 4 5
1. Integrity and Ethical Values
1.1 University Policies defining acceptable business practices such as legitimate use of University Resources are well understood by all personnel.            
1.2 University policies governing the relationship with external bodies, the community and the public at large are well understood by all Department/Unit personnel.            
1.3 University policies regarding conflict of interest are well understood by all personnel.            
2. Commitment to Competence
2.1 Job descriptions defining responsibilities are clearly stated in writing and communicated to employees.            
2.2 The leadership understands the knowledge and skills required to accomplish tasks by employees under its supervision.            
2.3 The leadership evaluates competency levels of employees under their supervision and ensures that employees are trained when competency is low.            
3. Management Philosophy and Operating Style
3.1 The leadership conducts business in an open and transparent manner.            
3.2 The leadership takes all measures to ensure compliance with the university rules and regulations.            
3.3 Exceptions to policy are rare, and when they occur, they occur after approval which is documented.             
3.4 The Leadership gives high attention to financial accountability and show concern for accurate and timely reporting of financial matters.            
3.5 Decisions are made after adequate discussion and analysis of the facts.            
4. Human Resources
4.1 Personnel is selected according to a careful hiring process.            
4.2 Training programs are delivered to employees.            
4.3 Inappropriate behavior by an employee is directly reprimanded regardless of the employee’s position or status.            
4.4 An organized employee performance evaluation process exists.            
4.5 Compensation decisions, such as salary increments, are based on a formal process involving more than one level of management, and the effect of performance evaluations on compensation decision is well defined and communicated.             
4.6 There is low turnover of employees. Root causes of turnover are understood and dealt with.            

Section II: Risk Analysis  

No. Description of Assessment Factor Assessment
Weak   Strong
Comments
1 2 3 4 5
5. Assignment of Authority and Responsibility
5.1 There exists a mission or value statement and is communicated to all personnel.            
5.2 Targets to be achieved are well set and performance to achieve objectives is continually measured.            
5.3 Employees at all levels are involved in establishing the objectives.            
5.4 Detailed budget are developed by area of responsibility following prescribed procedures and realistic expectations.            
6. Risk Identification
6.1 External risk factors (such as student and community need or expectations, new or changed legislation or regulations, technological developments) are effectively identified and their implications considered.              
6.2 Internal risk factors (such as new information systems, changes in management responsibilities, new or changed educational or research programs) are effectively identified and their implications considered.            
6.3 Identified risks are prioritized according to their potential impact and proper action decided.              
6.4 Regular efforts or programs exits to manage risks.            

Section III: Control Activities   

No. Description of Assessment Factor Assessment
Weak   Strong
Comments
1 2 3 4 5
7. Written Policies and Procedures
7.1 University Policies and Procedures are available to all employees and they know how to use them.            
7.2 Policies that belong to the College/Department/Unit are well understood by all Department/Unit personnel.            
8. Control Procedures
8.1 The University Senior Management monitors the college/Department/Units performance against objectives and budget.            
8.2 The leadership reviews actual performance compared to objectives. Performance reviews are made of specific functions or activities focusing on competencies, financial or operational issues. Unexpected operating results are investigated.            
8.3 Equipment, inventory, cash and other assets are protected. Control records exist and are up to date.            
8.4 Training and guidance is provided to personnel responsible for cash and similar assets.            
8.5 Employees understand which records they are responsible for maintaining and the required retention period.            
9. Communication Pattern
9.1 Interaction among all personnel is characterized by high level of trust.            
9.2 Violations of policies by employees are not overlooked. Employees who violate an important policy are disciplined.            
9.3 Employees are encouraged to provide recommendations for improvement. Ideas are recognized and rewarded.            
9.4 Policies are communicated to personnel by formal methods e.g. manuals, training programs etc.).            
9.5 Employees are kept informed of important matters and are able to communicate problems to persons with authority.            

Section IV: Monitoring    

No. Description of Assessment Factor Assessment
Weak   Strong
Comments
1 2 3 4 5
10. Management Supervisions
10.1 Leadership performs routine spot-checks of transactions and records to ensure expectations are met.            
10.2 Accounting policies are well developed and communicated.            
10.3 An analysis of actual versus budgeted results is performed and deviations are followed up on a timely basis.            
11. Response Mechanism
11.1 Timely corrective action is taken whenever there is a violation of University Policies.            
11.2 External or internal audit findings are considered and immediately acted upon at appropriate levels of management.