University of Florida Internal Control Principles

(These Internal Control Principles were adopted by the University of Florida, Audit Committee of the Board of Trustees.)

1. University administrators and managers are charged with the responsibility for establishing a network of processes with the objective of controlling the operations of the University of Florida in a manner which provides the board of trustees reasonable assurance that:

   1. Data and information published either internally or externally is accurate, reliable, complete, and timely.
   2. The actions of administrators, officers, and employees are in compliance with the University’s policies, standards, plans and procedures, and all relevant laws and regulations.
   3. The University’s resources (including its people, systems, data/information bases, and client goodwill) are adequately protected.
   4. Resources are acquired economically and employed effectively; quality business processes and continuous improvement are emphasized.
   5. The University’s internal controls promote the achievement of plans, programs, goals, and objectives.
       

2. Controlling is a function of management and is an integral part of the overall process of managing operations. As such, it is the responsibility of managers at all levels of the University to:

   1. Identify and evaluate the exposures to loss relating to their particular sphere of operations.
   2. Specify and establish policies, plans, and operating standards, procedures, systems, and other disciplines to be used to minimize, mitigate, and/or limit the risks associated with the exposures identified.
   3. Establish practical controlling processes that require and encourage administrators, officers, and employees to carry out their duties and responsibilities in a manner that achieves the control objectives outlined above.
   4. Maintain the effectiveness of the controlling processes established and foster continuous improvement to these processes.
       

3. The internal audit activity is charged with the responsibility for ascertaining that the ongoing processes for controlling operations throughout the organization are adequately designed and are functioning in an effective manner. The University of Florida Office of Audit and Compliance Review (OACR) is responsible for reporting to management and the Committee on Audit and Operations of the Board of Trustees on the adequacy and effectiveness of the organization’s systems of internal control, together with ideas, counsel, and recommendations to improve the systems.

4. The Committee on Audit and Operations is responsible for monitoring, overseeing, and evaluating the duties and responsibilities of management, the internal audit activity, and the external auditors as those duties and responsibilities relate to the organization’s processes for controlling its operations. The Committee is also responsible for determining that all major issues reported by the internal audit activity, the external auditor, and other outside advisors have been satisfactorily resolved. Finally, the Committee is responsible for reporting to the full board significant matters pertaining to the University’s internal control structure.