Internal Control Checklist

Introduction

The objective of the Internal Control Checklist is to provide the campus community with a tool for evaluating the internal control structure in a department or functional unit, while also promoting effective and efficient business practices. Utilization of this checklist should strengthen internal controls and improve compliance. The checklist is not meant to be absolute but informative when reviewing controls in a given area.

How do I use the checklist?

The checklist should be completed by individuals accountable for the particular business process.

Most internal control procedures are based on common sense.  For example, the person having custody of the asset, such as cash, should not  be the only person responsible for accounting for it and no one person should be able to complete a requisition/payment transaction or personnel/payroll transaction from beginning to end without  appropriate monitoring or oversight.  Incompatible duties should be segregated for a check and balance; laws and University policies and directives are expected to be followed.  Despite the fact that many internal controls are a simple matter of common sense, taking the time to periodically use this checklist to review the control processes can be a valuable tool in the process and help document your due diligence.

This checklist is similar to what auditors might use when performing a review of your department’s internal controls.

While “no” responses would normally indicate a potential weakness, this could be off-set by “compensating” controls within the unit.  It is difficult to make a statement regarding a particular control based on the response to just one question.  However, a “no” response will probably be an indicator that compensating controls or additional steps are needed for a particular process.

Additional information about internal controls is available at http://www.oia.ufl.edu/Internal_Control/Int_Control.html.

For more information about internal controls, a Q&A is provided at the end of the checklist.  If you have questions about the Internal Controls Checklist, please contact the University Controller’s Office at (352) 392-1321.

Remember, we all play a part in the university’s internal control system!