SUNY University-Wide Human Resources Manual
Orientation - Internal Control

last updated: Saturday, November 20, 2004

You may have heard of the term internal control, but what exactly is it? One text book definition is as follows:

Internal control comprises the plan of organization and all of the coordinate methods adopted within a business/institution to safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies. This definition recognizes that a system of internal control extends beyond those matters that relate directly to the functions of the accounting and financial departments.

In SUNY all employees share responsibility for Internal Controls. The objectives of Internal Control for NYS, SUNY, and SUNY campuses are summarized in the acronym CARES for:

Generally, controls are of two types:

1. Preventative Controls that are designed to discourage errors or irregularities from occurring (i.e., processing vouchers only after signatures have been obtained from appropriate personnel), and
   
   
2. Detective Controls that are designed to find errors or irregularities after they have occurred (e.g., reviewing departmental phone bills for personal calls).

All employees play a part in the internal control system even though it is primarily the responsibility of campus managerial employees to ensure that controls are in place. All NYS employees, including the Governor, the Chancellor, SUNY system staff, campus staff and even student employees, have responsibility for ensuring that safeguards are in place to protect and properly account for campus resources and to ensure no one can act in a manner that exceeds his/her authority or would violate the public trust.

One internal control area where Human Resource Officers must play a central role is workforce succession planning. As the current workforce made up of members of the "baby boomers" retire the history and knowledge about state operations is endangered unless an effective workforce succession plan is in place that is included in a campuses strategic plan and used as a guide in making human resource decisions. Workforce succession planning should also be included in a campus's internal control procedures and the State and SUNY have provided information and a checklist to guide campuses and to ensure that succession planning is given appropriate consideration. You will find links to the "State Information on Workforce Succession Planning" and "SUNY Information on Workforce Succession Planning" in the references below. You will also find a link to the "Workforce Succession Planning Checklist" under forms at the end of this page.

Reference(s):

Governmental Internal Control and Internal Audit Requirements:
http://www.budget.state.ny.us/bprm/b/b350.html

Internal Control Considerations for Payroll & Personnel (Richard Meade, Dir of HR Emeritus, SUNY Brockport)

Internal Control Law (Article 45, NYS Executive Law beginning at Section 950)
http://assembly.state.ny.us/leg/?cl=39&a=73

Standards for Internal Control in New York State Government (NYS Office of the State Comptroller (OSC): http://www.osc.state.ny.us/audits/audits/controls/standards.htm

State Workforce Succession Planning
http://www.cs.state.ny.us/successionplanning/resources/index.html

SUNY Workforce Succession Planning (Paul Tucci, Assistant University Controller's memorandum dated 9/16/2004)

Form(s):

Internal Control Vulnerability Assessment Form (MSWord fill-in)

Workforce Succession Planning Checklist (MSWord fill-in) or (PDF non fill-in) or (PDF fill-in)