State Technical College of Missouri (the College) maintains adequate and effective internal controls that safeguard assets against the risk of mismanagement, fraud, waste, and abuse. The College’s internal controls will provide reasonable assurance for compliance with applicable statutes and regulations, as well as the terms and conditions of Federal awards. The College will continually evaluate internal control processes to identify areas of improvement. The College will report waste, fraud, program abuse, and any other criminal activity in a timely manner in writing to the proper authority.
The following is a non-exclusive list of internal control mechanisms in place to ensure transactions are properly recorded and all financial reporting is reliable and accurate:
Supervisors have sufficient understanding of employee duties, processes, and controls to ensure that existing checks, balances, and approval processes are being followed.
Adequate segregation of duties is in place to ensure that no one person has control over all parts of a process.
A minimum of two (2) people must be involved in the cash receipt process.
A minimum of two (2) people must be involved in the cash disbursement process.
Bank reconciliations are prepared monthly by an individual who does not receive or post transactions and are reviewed by a higher authority than the preparer.
Appropriate consequences and loss of privileges for misappropriation or misuse of organization resources are in place.
College assets such as vehicles, equipment, and other resources are properly maintained, protected, and accounted for to safeguard against loss.
Related party transactions are avoided.
Signing of blank checks is prohibited.
Expenditures, including supporting documentation, are adequately reviewed and approved by proper personnel for accuracy and allowability.
Payroll must be reviewed for accuracy by an individual(s) independent from the payroll preparer.
All payroll timecard records must be approved by employee and supervisor.