Internal Control Program
Internal controls are a part of our daily operations. The controls developed and exercised by managers and their staff are the substance of the Internal Control Program. Our Internal Control Program is designed to ensure that the University has a system of accountability for and oversight of its operations to assist the University in achieving its goals and objectives. Internal Control is a process, effected by management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.
The New York State Governmental Accountability, Audit and Internal Control Act (the Act), Chapter 510 of the Laws of 1999, requires that all state agencies institute a formal internal control program. This program’s intent is to assure that the University and its campuses meet their mission, promote performance leading to effective accomplishment of objectives and goals, safeguard assets, check the accuracy and reliability of financial and other key data, promote operational efficiency and economy, and encourage adherence to applicable laws, regulations and prescribed managerial policies and practices.
The Division of Budget (DOB) further outlined the efforts required of state agencies and public authorities to comply with the Act through issuance of the Budget Policy and Reporting Manual Item B-350, Governmental Internal Control and Internal Audit Requirements. In addition to outlining the performance of certain internal control responsibilities, all agencies must annually certify to DOB that they are in compliance with those requirements. The internal control responsibilities required by DOB are:
- Establish and maintain guidelines for a system of internal controls.
- Establish and maintain a system of internal controls and a program of internal control review.
- Make available to each employee a statement of the policies and standards with which they are expected to comply, emphasizing the importance of internal controls and the responsibility of each employee for effective internal controls.
- Designate an Internal Control Officer to implement and review the internal control program.
- Implement education and training efforts to ensure that employees have adequate awareness and understanding of internal control standards.
- Periodically evaluate the need to maintain an Internal Audit function.
What We Are Doing
Binghamton University has implemented an Internal Control Program to comply with the above noted requirements and to help ensure that the campus meets its mission. The President has assigned responsibility to the Office of Internal Control for reviewing our internal controls and for providing information and training about them.
A successful internal control program depends on the participation of all employees at every level. Therefore, all employees should be aware of the University’s mission and goals and their roles in attaining those goals. All employees should routinely exercise judgment and act to protect the University and its resources from loss, waste or damage as well as ensure the accuracy and reliability of financial and other key data. All employees are expected to exhibit ethical values and integrity in their daily activities, seeking areas for improvement and acting in the best interests and protection of the University and the public.