Contact Us

In This Department

Topics of Interest

Department Home

More Information

Internal Controls - Vanderburgh County

 Indiana State SealInternal Control Procedures for Vanderburgh County

Internal Control Policy and Required Certifications:

INTERNAL CONTROLS

Internal controls are the policies and procedures used by management to ensure that their programs and functions operate efficiently and effectively in conformance with applicable laws and regulations. One purpose of internal control is to ensure that financial reporting of the financial statements and the schedule of expenditures of federal awards are completed accurately. It is also used to reduce the risk associated with fraud related to the operations of the governmental unit. Internal control is essentially a check and balance system over the operations. The foundation for a good internal control system starts with making sure that there are appropriate procedures in place to ensure that errors and fraud are either prevented or detected and corrected in a timely manner.

In order to have an effective internal control system, it is important to have proper segregation of duties. Segregation of duties is a common term referred to in relation to internal control. This means to have a separation of functions over certain activities that would provide internal control. The fundamental premise of segregation of duties is that an individual or small group of individuals should not be in a position to initiate, approve, undertake, and review the same action. An example of appropriate segregation of duties would
be having one individual prepare claims, having another individual review and approve the claims, and having a third individual sign the checks for payment of the claims. Without proper segregation of duties, it is difficult to have an effective system of internal control. Sufficient compensating controls would then need to be implemented. This might entail random verification and approval by the official at different points in the process or switching duties. There are two main advantages to implementing segregation of duties. The first is that fraud is more difficult to perpetrate when proper segregation of duties is in place because it would require collusion of two or more individuals. Secondly, with several individuals involved in the process, innocent errors are more likely to be detected and corrected. Officials have the fiduciary responsibility to ensure the proper accountability of financial activity. This is accomplished by making sure there is proper oversight, reviews and approvals.

IC 5-11-1-27:

(e) In the compliance guidelines authorized under section 24 of this chapter, the state board of accounts shall define and the audit committee shall approve not later than November 1, 2015, the acceptable minimum level of internal control standards and internal control procedures for internal control systems of political subdivisions, including the following:(1) Control environment.(2) Risk assessment.(3) Control activities.(4) Information and communication.(5) Monitoring.
The internal control standards and procedures shall be developed to promote government accountability and transparency.

(f) Not later than November 1, 2015, the state board of accounts shall develop or designate approved personnel training materials as approved by the audit committee, to implement this section.

(g) After June 30, 2016, the legislative body of a political subdivision shall ensure that:

(1) the internal control standards and procedures developed under subsection (e) are adopted by the political subdivision;and(2) personnel receive training concerning the internal control standards and procedures adopted by the political subdivision.

(h) After June 30, 2016, the fiscal officer of a political subdivision shall certify in writing that:


(1) the minimum internal control standards and procedures defined under subsection (e) have been adopted by the political subdivision; and(2) personnel, who are not otherwise on leave status, have received training as required by subsection (g)(2).The certification shall be filed with the state board of accounts at the same time as the annual financial report required by section 4(a) of this chapter is filed. The certification shall be filed electronically in the manner prescribed under IC 5-14-3.8-7.

(i) After June 30, 2016, if the state board of accounts finds during an audit of a political subdivision that:(1) the political subdivision has not adopted the internal control standards and procedures required under subsection (g)(1); or(2) personnel of the political subdivision have not received the training required under subsection (g)(2);the state board of accounts shall issue a comment in its examination report for the political subdivision. If, during a subsequent audit, the state board of accounts finds a violation described in subdivision (1)or (2) has not been corrected, the political subdivision has sixty (60)days after the date the state board of accounts notifies the political subdivision of its findings to correct the violation. If a violation is not corrected within the required period, the state board of accounts shall forward the information to the department of local government finance.


Internal Controls Ordinance

CO.06-16-006 was adopted by the Vanderburgh County Commissioners on June 7, 2016. It appears under county code in Title 2 Chapter 2.05. Click here to review. 

Click on County Ordinances below for:

2.90.310 Discipline/termination/work rules.
2.90.315 Problem Resolution.
2.90.131 Use of Credit Cards.
2.90.135 Personal use of county property.
2.90.160 Timekeeping.

Internal Controls - Grant Procedures

Grant Reporting - Department:

Step One:

The Department will submit the grant application to the "Grantor" for approval.

Step Two:

Once the Grant application is approved, the grant agreement is sent to the Auditor to be signed.

Step Three:

Once the final grant agreement is provided by the "Grantor", the Department will bring the grant to the Auditor's Office for execution.

Step Four:

The Auditor's Office will create a file for each grant.

Step Five:

The Department must return a copy of the Awards letter, grant agreement, and a New Fund Request to the Auditor's Office. If it is a Federal Grant, a Federal Grant Summary Form must also be submitted.

Step Six:

The Department must fill out a Grant Monies Requested Form each time the County is to receive grant funding. The claim vouchers and request for advances supporting the
distribution should be attached to the form.

Step Seven:

A copy of all documents will be kept in their own grant file by fund in the Auditor's Office.


Grant Reporting in Gateway:

Step One:

The Bookkeeper in the Auditor's Office will pull individual grant files and a working spreadsheet for each fund.

Step Two:

The Bookkeeper will run reports from our Financial System.

Step Three:

Compare financial reports to the Bookkeeper's spreadsheet verifying receipts, invoices, quietus, to make sure they balance.

Step Four:

Once the financials are balanced to the grant files, that information is entered into Gateway.

Step Five:

After entering everything into Gateway, run a Grant report out of Gateway to insure the balances match to our financial system and the Bookkeeper's detailed spreadsheet.

Step Six:

The Bookkeeper's spreadsheet is sent to the appropriate department to verify receipts, disbursements, award numbers, CFDA numbers, and pass through entity information.

Step Seven:

The departments will verify all information, and make any corrections if necessary. The Departments will have to INITIAL next to each:

  • Receipt total,
  • Disbursement total,
  • Project Name and Description,
  • Federal Program name and Project Title,
  • Federal Agency,
  • Pass Through Agency,
  • CFDA Number,
  • Award Name,
  • Award Number
  • and Grant Type.

Step Eight:

Then the Federal Grants will be submitted in Gateway, and the grant reporting will be completed to the best of the Auditor Office's ability.

Internal Control Training

  • Click on SBOA Webinar link for the training webinar.
  • Once completed, click on the Certification Form link to fill out and submit to Sam Garau in the Auditor's Office.

SBOA Documentation Internal Control Training

 

 

 

 

 

  • Useful Links