A core component of a robust internal control structure involves clear documentation and communication of the who, what, when and why various authorizations and approvals apply to specified aspects of the management, administration and governance of the local public school system. The term authorization is the delegation of authority to select school officials. The term approval means the designated school official has reviewed the relevant and required supporting documentation in order to be satisfied that the proposed transaction or matter being reviewed is appropriate, accurate and complies with applicable laws, regulations, policies, and procedures. In making an assessment of the district’s requirements for authorizations and approvals questions to ask include:
Do all employees and board members understand:
- The who, what, when and why that apply to requirements for approvals and authorizations?
- What approvals are required in advance, and in writing?
- Only designated school officials acting within the scope of their roles and responsibilities are permitted to authorize, approve, and execute transactions?
Do all school officials acting as authorizers and approvers understand:
- They are just as responsible and as accountable as the person executing the transaction?
- They are expected to have actual knowledge of the transactions they approve and should question any unusual items before signing?
- The internal control impact of their signature and that they should never let someone sign their name?
- They should never share their password to electronic systems for making approvals?
- They need to be satisfied as to the validity and accuracy of the transaction before signing?
Does the district make periodic surprise spot checks for adherence to processes, procedures, segregation of duties and policies for authorizations and approvals in various departments and offices during the year?