1 / 15

UMBC Management Advisory Services umbc/mas/

UMBC Management Advisory Services www.umbc.edu/mas/. INTERNAL CONTROL EDUCATION SESSION Presented by: Frances Toth ftoth@umbc.edu Ext. 56257 Sharon Doherty-Ritter doherty@umbc.edu Ext. 51620 Shared Fax 55676. Opportunity. Occupational Fraud. Pressure. Rationalization.

branxton
Download Presentation

UMBC Management Advisory Services umbc/mas/

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. UMBCManagement Advisory Serviceswww.umbc.edu/mas/ INTERNAL CONTROL EDUCATION SESSION Presented by: Frances Toth ftoth@umbc.edu Ext. 56257 Sharon Doherty-Ritter doherty@umbc.edu Ext. 51620 Shared Fax 55676

  2. Opportunity Occupational Fraud Pressure Rationalization

  3. Importance of Internal Controls • Prevent Occupational Fraud • Good business practices • Good audit reports • Legislative, Internal and External Audits

  4. What can happen without adequate internal controls? • Fraud Report Findings

  5. What Is Internal Control? • A process, effected by an entity’s management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: • Effectiveness and efficiency of operations; • Reliability of financial reporting; and • Compliance with applicable laws and regulations. Source: OMB Circular A-133

  6. Who’s Responsible?Ethical climate – institutional values • The establishment, implementation and monitoring of internal controls is the responsibility of the: • President for the Institution. • Vice Presidents for their Divisions. • Deans for the Colleges. • Department Chairs and Directors. • The tone is set at the top!

  7. Components of Internal Control • Control Environment • Risk Assessment • Information and Communication OIT training web site: www.umbc.edu/training • Monitoring • Control activities

  8. Control Activities • The policies and procedures that help ensure directives are carried out and objectives are achieved. • Includes activities such as: • approvals • authorizations • verifications • reconciliation • separation of duties: custody, approval, recordkeeping

  9. Limitations of Internal Control • Achievement of objectives is affected by limitations inherent to internal control systems. • Limitations include: • Judgment • Breakdowns • Management override • Collusion • Cost/Benefit

  10. Critical Control Points • Payroll • Cash Receipts • Departmental Deposits into PS • Procurement • P-cards • Equipment

  11. Opportunity Occupational Fraud Pressure Rationalization

  12. “Red Flags” of Occupational Fraud • Marked personality changes in employees • Financial pressures on employees • Employee living beyond his/her means • Employee having outside business interests • Poor internal controls

  13. “Red Flags” of OccupationalFraud (Continued) • Rising department expenses • Too much control in key employees • Lax management • Failure to pre-Screen employees

  14. What can you do? • Identify your needs by using the checklists we have provided. • Take the time and make the effort to implement changes. • Request appropriate resources and request assistance from your Business Services Manager or MAS.

  15. Reporting Fraud • Report suspected fraud or any “red flags” to your department head, Management Advisory Services, or Human Relations (Adrienne L. Mercer ext. 51606 almercer@umbc.edu) • Report fraud – Contact Office of Legislative Audits www.ola.state.md.us 1-877-372-8311

More Related