Simply put, internal controls are activities or procedures designed to provide reasonable assurance that operations are “going according to plan.” Success in establishing an effective internal control system starts with “the tone at the top” that is associated with the governing board and executive management. School finance officers have highly significant roles and responsibilities in overseeing complex accounting and financial reporting, and overseeing compliance-related processes and controls that are pivotal to and benefit all areas of the local public education system. Front-line managers and supervisors on every instructional campus and in all operational departments also have important ongoing and continuous roles in implementing and monitoring internal controls. In its oversight, authorization and policy making role, the governing board relies on executive management to lead and guide front-line managers and supervisors in the design, implementation and active monitoring of internal controls.
How can a school district help ensure the culture of the organization actively supports processes and procedures that provide reasonable assurance that operations are “going according to plan?” How does a school district ensure this essential culture is engrained in all employees and help employees understand that everyone can benefit if things “go according to plan.” In this regard, essential communications that can benefit supervisory processes or human resources functions include:
- Communicate management’s expectations about internal controls related to the employee’s assigned duties and responsibilities;
- Add and update internal control factors related to performance criteria in the employee’s job description;
- Communicate periodically throughout the year about performance levels in following installed internal controls related to the employee’s duties and responsibilities;
- Include internal control factors in performance criteria that are assessed in the employee’s interim and annual performance evaluations; and
- Provide training on processes and procedures related to the employee’s assigned roles and responsibilities, after assessing performance reports. Training is most effective when provided as early as possible after assessing leading indicators related to projected end-of-period or end-of-fiscal year performance levels.