Internal Control Evaluation
Sarbanes-Oxley Act (SOX) and the New York State Attorney General has also applied comparable provisions to school districts as well as creating the New York State Non-Profit Revitalization Act which reminds us of the importance of assessment and reporting on the effectiveness of internal controls over financial reporting.
Internal control is a process affected by an entity’s Board of Directors, Management and other personnel. The internal control process is designed to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. In the past, many organizations simply accepted the internal control process utilized by their management. The oversight of the Managing Agent by Board of Director can vary from informal to formal. It is imperative that the Board understands and exercises their oversight responsibilities. No better internal control exists than curious board members utilizing a scheduled approach to review the day-to-day issues affecting their operations.
Our staff is available to report on the internal controls that exist, assure their adequacy for the purpose in which they are designed, assure that important aspects of operations are controlled, and make recommendations on where procedures can be improved, consolidated, and are no longer cost effective to assist in your Board achieving Best Practices designation.