Internal Control Policy Statement

Internal Control Program | Record Retention | Fraud Hotline | Policies

To: Campus Community
From: W. Hubert Keen
Date: January 16, 2013
Re: Internal Control Program – Policy Statement 

The New York State Governmental Accountability, Audit and Internal Control Act, Chapter 510 of the Laws of 1999, requires that all state agencies institute a formal internal control program. The internal control program at Farmingdale is designed to ensure that the College safeguards its assets, provides accurate and timely financial data, encourages operational efficiency and economy, and promotes adherence to applicable laws, regulations, contracts and management directives.

An internal control system is the integration of the activities, plans, attitudes, policies and efforts of the people of an organization working together to provide reasonable assurance that the organization will achieve its objectives and mission.

The Employee’s Responsibility

The College’s Internal Control Program functions most effectively with the cooperation and involvement of all employees. Competence and professional integrity are essential components of a sound internal control program. Employee responsibilities include:

• Fulfilling the duties and responsibilities established in job descriptions and meeting performance standards;
• Taking reasonable steps to safeguard assets against waste, loss, unauthorized use and misappropriation;
• Reporting breakdowns in internal control to your supervisor;
• Attending internal control training programs; and
• Responding to the requirements of periodic internal control reviews in your department.

With your continuing support and diligence, I know that Farmingdale State College can be successful in maintaining an environment conducive to accomplishing the College’s mission, goals and objectives.

A description of Farmingdale State College’s Internal Control Program can be found below.

If you have questions regarding Internal Control please contact the Internal Control Office at 420-2166.

Internal Control Program

Internal Controls are the responsibility of all employees!

Developed in accordance with SUNY Internal Control Guidelines

INTRODUCTION

The New York State Internal Control Act of 1987 requires all State-operated campuses to establish and maintain a system of internal controls and an ongoing internal control program.

Farmingdale State has adopted SUNY’s Internal Control Guidelines. This brochure is an abbreviated version of SUNY’s Guidelines and refers to specific aspects of the College’s Internal Control Program

DEFINITION

Farmingdale State’s Internal Control Program is essentially a program of education and review. The Program helps to ensure that operating practices and procedures are sufficient to minimize the possibility of operational failure, overspending or other actions inconsistent with policy or in violation of the law. Simply stated, the College’s Internal Control Program is designed to review, critique and strengthen our existing systems and procedures.

OBJECTIVES

The specific objectives of Farmingdale State’s Internal Control Program are to ensure:

• Achievement of the College’s mission,
• Compliance with applicable laws and regulations,
• Relevant and reliable data,
• Economical and efficient use of resources, and
• Safeguarding of assets.

INTERNAL CONTROL SYSTEMS

Farmingdale State’s Internal Control Program is comprised of several major internal control systems. These systems support and strengthen the College’s planning processes and provide reasonable assurance that the objectives of our Internal Control Program are met.

Some examples of the major internal control systems now in place at Farmingdale State include:

• NYS Education Law and other applicable laws, policies and regulations
• Administrative professional handbook
• Mission statements and operational objectives
• Policy handbooks and memoranda
• Organization charts and decision making hierarchies
• Budget development and approval process
• Chart of accounts
• Equipment inventory system
• Institutional data coordination
• Position descriptions
• Formal statements and policies governing hiring procedures

The College’s Internal Control Program provides for a formal evaluation of the effectiveness of our major systems and their individual control mechanisms. Where gaps or non-effective controls exist, they are identified and addressed within a reasonable timetable. The status of all recommendations is monitored and updated on a semi-annual basis by the College’s Internal Control Officer.

EMPLOYEE’S RESPONSIBILITY

Internal Controls are the responsibility of all employees.

Managers are responsible for the development, maintenance, documentation and supervision of internal control systems. Likewise, each employee is responsible for adhering to established internal controls and all applicable management policies and standards issued by the State of New York, SUNY or Farmingdale State.

The following are examples of the College’s management policies and standards with which, when applicable, all employees are expected to comply:

• Policies issued by the Board of Trustees
• Pertinent collective bargaining agreements
• Ethics Law
• The Public Officers Law
• Duties and performance standards as established in job descriptions and performance programs
• Non-smoking regulations, managing AIDS, and alcohol and drug use in the workplace
• Travel policies
• Parking regulations
• Affirmative Action policies and procedures

Most of the above items can be viewed in the College’s Library or the Office of Human Resources. Informational documents or memoranda issued and distributed by the President, Vice Presidents, Dean, Directors and Department Chairs should be available in your department office.

PROGRAM OPERATION

The Farmingdale State Internal Control Program operates on a multi-year planning cycle and incorporates the following processes:

Segmentation

Segmentation is the process of identifying the program and administrative functions necessary for the College to carry out its mission. Functions identified through this process are called “assessable units” and provide the framework for the Internal Control Program.

Risk Assessment Surveys

Through the use of risk assessment surveys, the College monitors and evaluates its susceptibility to conscious or unintended abuses and reduced operational efficiencies.

Completed risk assessments are evaluated and a rating of low, average or high risk is assigned to each assessable unit. These ratings are considered when scheduling internal control reviews.

Internal Control Reviews

An internal control review analyzes procedures and policies to insure they are functioning as intended and that they are effective. Examples of procedures and policies that may be reviewed include planning activities, program evaluations, the budget cycle, personnel transactions, information systems, cash activities, contract management and capital programs.

Training

Training is an ongoing component of the College’s Internal Control Program. The College provides training in several formats, including formal training sessions, written guidelines and memoranda, and reference materials.

Formal training sessions are conducted to familiarize the employees with the objectives of the Internal Control Program, how it operates and the benefits it provides.

MORE INFORMATION

If you have any questions regarding Farmingdale State’s Internal Control Program, please contact the Internal Control Office in Horton Hall at 420-2166.

Retention and Disposition of Records

It is the policy of Farmingdale State College to adhere to the State University of New York’s record retention and disposition requirements.  The retention of records is necessary to ensure that records are maintained for as long as they are needed for administrative, fiscal, legal, or research purposes.  It is also important that records that are no longer needed be destroyed properly.

Please refer all inquiries related to the retention and disposition of records to the Farmingdale State College Internal Control Office.

Contact:
Internal Control Office
Room 155, Horton Hall
631-420-2166