Financial Procedures and Internal Controls Internal controls Why - PowerPoint PPT Presentation

Feb 05, 2024 •481 likes •630 views

Financial Procedures and Internal Controls Internal controls Why is this so important? Internal control why is this so important? Create valuable information on to the leadership on financial matters informed decision making

Financial Procedures and Internal Controls
Internal controls Why is this so important?
Internal control – why is this so important? • Create valuable information on to the leadership on financial matters – informed decision making • Defines measurements of success • Strengthen value of external reporting through its reputation • Accountability • Internal: Board/Secretary General/employees • External: ZNCDA/donors/member/beneficiaries/governmental institutions • Secure trust of donors, partners and beneficiaries • Minimize the risks of: • Errors • Fraud • Corruption
What are the characteristics of organisations with strong internal controls • Strong information system: Ø Complete reporting Ø Timely reporting Ø Relevant Ø Understandable Ø True and fair Ø Etc. • Transparent procedures • Segregation of duties • Sufficient skills • Clear roles and responsibilities • Quick and timely response to challenges and problems • Order
Internal control tools • Proactive controls • Limitations (physical barriers, user settings etc.) • Segregation of duties • Acquire and maintain sufficient skills • Reactionary controls • Reporting • Approvals • Documentation of decisions and accountabilities • Internal and external auditing • Supervision
Pointers on internal control • The risk of fraud is always there • The possible cost of fraud should be limited • Errors and fraud should be revealed as fast as possible • Balanced control level – make risk analysis • Evaluate cost of control against cost of fraud and errors • Control levels in relation to risk • Think trust vs. control vs. bureaucracy
Fraud Theory and reports
ACFE – observed behavioral red flags in fraud cases
KPMG’s profile of a fraudster • Survey done i 2007 • Based on 360 cases from Europe, Middle East and Africa • The typical fraudster: • A member of the leadership • Often connected to the financial department • Exploits knowledge of the internal controls • Drived by opportunity of personal gain • Works alone in the fraudulent activities • Has been doing it for more than 6 months
ACFE report – behavioral red flags
Control weaknesses
Tools of a fraud • Forgery of documents and accountabilities • Witholding information and registration of transactions • Giving misinformation to management and auditor

Recommend

Internal Controls Presented by: Patrick Cowen, CPA, CIA, CISA Why Internal Controls? Prevent

Internal Controls Presented by: Patrick Cowen, CPA, CIA, CISA Why Internal Controls? Prevent and Detect Fraud, Waste and Abuse Motive + Opportunity + Justification = Fraud 2 What Are Internal Controls? Internal Control is a process set by

547 views • 42 slides

Todays Keys What are Internal Controls Financial Close Controls Where to Find Resources

Todays Keys What are Internal Controls Financial Close Controls Where to Find Resources Community Foundation 1 What are Internal Controls Community Foundation 2 Objectives of Internal Control are Interrelated Reduce risk of loss

389 views • 18 slides

The Annual Internal Controls Certification Process The Office of Internal Controls The Office

The Annual Internal Controls Certification Process The Office of Internal Controls The Office of Internal Controls ANNUAL UNIT CERTIFICATION History Began with 2005 FY High degree of decentralization in higher education Designed to

407 views • 27 slides

MRO Internal Controls Accounting and Financial Management March 28, 2019 1 The purpose of this

MRO Internal Controls Accounting and Financial Management March 28, 2019 1 The purpose of this presentation is to update the MRO Board of Directors on MROs internal control environment, documentation, and compliance oversight. It is meant

484 views • 19 slides

Internal Controls A short presentation from Your Internal Audit Department The Old Internal

Internal Controls A short presentation from Your Internal Audit Department The Old Internal Audit Department The New Internal Audit Department Were here to help! Teach + Train = Change Our goal: Promote effective, efficient and

205 views • 19 slides

Internal Controls for Your Form 990: What to Know Christa Divis, CPA, MBA, CGMA VP of Finance

Internal Controls for Your Form 990: What to Know Christa Divis, CPA, MBA, CGMA VP of Finance and Chief Financial Officer Coastal Community Foundation Agenda 1. Introductions 2. Internal Controls 3. Form 990 Overview 4. Putting It Together!

405 views • 19 slides

Non-Profit Internal Controls: Establishing and Examining Controls To Prevent Fraud and Improve

Presenting a live 110-minute teleconference with interactive Q&A Non-Profit Internal Controls: Establishing and Examining Controls To Prevent Fraud and Improve Financial Reporting WEDNESDAY, JULY 17, 2013 1pm Eastern | 12pm Central |

772 views • 54 slides

Audits and Internal Controls Presented by: Tami Bidle, Financial Reporting Manager, Business

9/27/2018 WA S H I N G T O N S T AT E U N I V E R S I T Y Audits and Internal Controls Presented by: Tami Bidle, Financial Reporting Manager, Business Services/Controller Heather Lopez, Chief Audit Executive, Internal Audit August 22, 2017

613 views • 17 slides

Introduction This training covers the internal control policies and procedures that property

Policies & 2017 INTERNAL CONTROLS TRAINING FOR PROPERTY Procedures Training MANAGEMENT Introduction This training covers the internal control policies and procedures that property managers must follow starting January 1, 2017. The

843 views • 38 slides

WA S H I N G T O N S T AT E U N I V E R S I T Y Fiscal Audits and Internal Controls Terry Ely ,

WA S H I N G T O N S T AT E U N I V E R S I T Y Fiscal Audits and Internal Controls Terry Ely , Executive Director Business Services/Controller Heather Lopez , Chief Audit Executive Internal Audit Revised November 2015 1 Workshop

486 views • 20 slides

Financial Management Review of Financial Management Financial Management System Internal

Financial Management Review of Financial Management Financial Management System Internal Controls Accuracy of Report Information Program Income Salaries And Wages OMB Circular A-133 Single Audits Financial Management

461 views • 12 slides

Internal Controls for Federal Grants Terenzio Volpicelli, CPA, Partner Roselli, Clark and

Internal Controls for Federal Grants Terenzio Volpicelli, CPA, Partner Roselli, Clark and Associates MMAAA June Annual Meeting South Yarmouth, Massachusetts June 13, 2018 Agenda What are internal controls What does the Uniform

507 views • 39 slides

Financial Internal Controls Initiative Purchasing Card Compliance Implementation Administrative

Financial Internal Controls Initiative Purchasing Card Compliance Implementation Administrative Council Meeting January 26, 2017 University of Wisconsin Madison 1/31/2017 1 Agenda Background The new process for addressing

259 views • 13 slides

Internal Fin In inancial Controls [Opportunity to redefine control environment] Huzeif ifa

Internal Fin In inancial Controls [Opportunity to redefine control environment] Huzeif ifa Unwala August 04 2016 Founder Ver erit ita Manage gement Advis visors Pvt. vt. Ltd Ltd. TOPICS S Fraudulent Financial Reporting

630 views • 45 slides

Todays Keys What are Internal Controls What are High Risk Areas How to Assemble a Team How

Todays Keys What are Internal Controls What are High Risk Areas How to Assemble a Team How to Document Where to Find Resources Community Foundation 1 What are Internal Controls Community Foundation 2 Polling Question What Comes to

560 views • 26 slides

Department of the Navy Audit and Internal Controls Mr. Joe Marshall Ms. Ann-Cecile McDermott

Department of the Navy Audit and Internal Controls Mr. Joe Marshall Ms. Ann-Cecile McDermott Acting Assistant Secretary Assistant Deputy Commandant, of the Navy Programs and Resources Financial Management & Comptroller USMC Fiscal

340 views • 16 slides

REAL World: Fraud and Internal Controls 2016 MASBO Fall Conference September 15 1: 15 2:

9/15/2016 REAL World: Fraud and Internal Controls 2016 MASBO Fall Conference September 15 1: 15 2: 15 pm Earl P . Burke, MBA, CSBA Assist ant Superint endent for Business Services & Operat ions Chief Financial Officer Cautionary

329 views • 16 slides

Internal Audit Professionals & Internal Audit Students Pizza Mingle! Managing the Internal

Internal Audit Professionals & Internal Audit Students Pizza Mingle! Managing the Internal Audit Function Sponsored by: The Austin Chapter of the Institute of Internal Auditors, Academic Relations Committee Slide 1 Managing The Internal

722 views • 12 slides

Internal Audit Supermarket Chain Internal Audit Supermarket Chain Objective: To conduct

Case Study Internal Audit Supermarket Chain Internal Audit Supermarket Chain Objective: To conduct internal audit to assess the effectiveness of the processes laid down and to establish controls. The supermarket chain is one of the

483 views • 4 slides

Financial Internal Controls Capital Equipment VCFA Directors Meeting March 28, 2016 1 Agenda

Financial Internal Controls Capital Equipment VCFA Directors Meeting March 28, 2016 1 Agenda Refresh: Capital Equipment Project Background Phase 1 Team: Key Findings & Recommendations Phase 2 Team: Work Completed to Date

360 views • 9 slides

Fourth Quarter 2019 January 29, 2020 Forward-Looking Statements (a) the inherent limitations

Exhibit 99.2 Fourth Quarter 2019 January 29, 2020 Forward-Looking Statements (a) the inherent limitations in internal controls over financial reporting; (b) our ability to remediate any material weaknesses in internal controls IMPORTANT

538 views • 25 slides

Agenda Introduction Internal Controls the textbook version ACFE Report to the

6/21/2018 Fraud Happens.but it doesnt have to. A Simple Perspective on how to Protect You and Your Organization David Mol, CPA Redpath and Company,Ltd 1 Agenda Introduction Internal Controls the textbook version ACFE

499 views • 20 slides

New Procedures under the Regulation 16 th November 2015 Internal Security Fund 2014-2020

New Procedures under the Regulation 16 th November 2015 Internal Security Fund 2014-2020 Co-financing rate: 75% EU Funds 25% Beneficiary s Funds Sustainable Management of Internal Security Content The Payment Procedure (new IT system to

523 views • 9 slides

Internal Procedures 2015-2016 1 Account Coding OVERVIEW Texas Education Agency Financial

Fixed Assets Internal Procedures 2015-2016 1 Account Coding OVERVIEW Texas Education Agency Financial Accountability Resource Guide requires that Texas Schools account for fixed assets. This includes Land, Furniture, buildings, improvements

254 views • 21 slides