1. The primary responsibility for an adequate system of internal control lies with the head of each institution.
  2. The preaudit department should share with other departments the responsibility of ensuring that adequate internal and accounting control measures have been adopted.
    1. Internal control comprises the plan of organization and all coordinate methods and measures adopted within an organization to:
      1. Safeguard its assets.
      2. Check accuracy and reliability of the accounting records.
      3. Promote operational efficiencies.
    2. Ensure adherence to prescribed statutory, University of Wisconsin System and institution policies.
      1. Accounting control comprises the plan of organization and the procedures and records concerned with safeguarding assets and the reliability of financial records. It is designed to provide reasonable assurance that:
      2. Transactions are executed and approved in accordance with management’s authorization;
      3. Transactions are recorded properly to:
        • Permit preparation of financial statements;
        • Maintain accountability for assets;
        • Implement appropriate budget controls.
    3. Sound internal control practices will assure management, preauditors and post-auditors that:
      1. Policies and procedures prescribed in various directives, accounting manuals, etc. are being followed;
      2. No one person will handle transactions completely from beginning to end and that the preaudit function is independent of the purchasing or budget management function;
  3. If it is determined that transactions are not being handled in accordance with the internal and accounting controls outlined above, the appropriate business office official should be notified.
  4. UW System Administrative Policy 304 – Fiscal Misconduct Section 6 contains aspects of internal controls and outlines steps to take when fraud is detected.