Evaluating Internal Controls

Purpose: To ensure that controls are evaluated on a periodic basis and continue to be effective.

Procedure:

The Business Administrator/Board Secretary will establish a process to evaluate internal controls over all areas of financial and operational procedures in the district.
These internal controls should be evaluated at least annually and every time one of the following conditions exists:
a. Change in personnel performing a control function
b. Change in accounting system
c. Change in regulations
As the controls are evaluated, a determination should be made that designates the control as either effective or ineffective. Ineffective controls should be changed to achieve the proper level of effectiveness required.