A high-level control environment survey is a best practice to take the pulse of the organization. This survey should target all employees in each organizational unit and is best done by an independent third-party with assurances of anonymity to encourage open and actionable feedback. The results will reveal useful insights that will be helpful in prioritizing areas that indicate opportunities for additional review for more in-depth reviews of internal controls. The survey questions may include:
- Do appropriate employees in the unit have access to the organization’s policies; operating procedures and process manuals specific to the organization unit’s area; the district’s internal control principles; and compliance-related rules, regulations and guidelines?
- Are the unit’s organizational structure and lines of authority understood by all employees?
- Do you, coworkers, and management have training, knowledge, and skills to perform assigned roles and responsibilities, and excel?
- Are annual operational plans and performance developed and reviewed periodically?
- Are the unit’s performance goals and objectives realistic?
- Has the unit developed benchmarks to other units in the organization and to external organizations?
- Are records maintained in accordance with procedures and process manuals?
- Are records retained in a secure area in accordance with the organization’s records retention policies and procedures?
- Do the unit’s employees have the tools and resources to adequately perform their duties and excel?
- Are job descriptions current?
- Are desk procedures current?
- Is the unit’s employee turnover rate reasonable?
- Is employee morale acceptable?
- Does the unit have sufficient employees to adequately perform their duties and excel?
- Are communications, collaboration and team effort encouraged?
- Does the unit’s management demonstrate the importance of following the district’s code of ethics- and conflict of interest-related policies and procedures?
- Does the unit’s management encourage suggestions and feedback to improve performance, service and quality?
- Does integrity in reporting take precedence over reporting achievement of performance goals?
- Does the unit have a sufficient business continuation plan that addresses absences of key employees, catastrophic events, and backup procedures for key school finance, operational and technology systems that help ensure minimal disruption?
- Are the unit’s employees aware of how to communicate suspected fraud, theft, misuse of assets, conflict of interest and ethical issues?
- Are risk assessments for the unit periodically accomplished and reviewed by executive management?
It is to be expected that there may be one or more ”not sure” or “no” answers to the control environment survey questions, which should be evaluated in the context of potential low, medium or high internal control impacts. It is recommended that annual control environment surveys be conducted in order to follow trends and to allow for timely identification of emerging issues while they are more readily resolvable with minimal disruption to the delivery of services, programs and activities.