Internal Control
Internal control is a process, effected by the management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
- Effectiveness and efficiency of operations.
- Reliability of financial and operational reporting.
- Compliance with applicable policies, plans, procedures, laws and regulations.
- The safeguarding of resources including physical and human resources.
Internal Control Register Monitoring Techniques
Internal control register monitoring techniques involve the following:
- Understanding the basic elements of the work system being checked. This includes understanding the purpose of the system, and having some idea of what would happen if the system itself, and its inherent controls were not in place.
- Observing the actual work to see whether the desired controls are being adhered to in practice. This can take the form of:
- Being physically present to observe work methods.
- Reviewing documentary evidence of transactions to ensure that there is evidence of the required controls being observed in the day to day processes. Such retrospective review often entails an element of sampling if the work area is characterised by high volumes. If this is so, it is helpful if the sampling technique is documented.
- Objectively and critically comparing the intent of the recommended control to the work practices they are observing and ask the question, "Do they match?"
- The start and finishing points of each control should be clearly identified in the internal control records so that pieces of work are not overlooked.
- All instances where controls are missing or being applied incorrectly are recorded and evidenced.
Checks
- Checks begin with reviewing the internal control record from the previous quarter to ensure that the required remedial actions have been taken.
Agreed Timeframes
Agreed timeframes are:
- Frequency of checks undertaken as determined in the specified work systems in the national internal control register.
- The starting point of the internal check is the day after which is noted on the register from the last check.
- Remedial action on listed exceptions are undertaken within a minimum of five working days of receiving the form or whatever is necessary to meet reporting requirements.
- Variation applications are prepared and forwarded along with the March quarter returns.
- Internal control certificate and accompanying documents are received by the GMPPS within ten working days of the end of the quarter.
Examining National Register
On examining the national register the following are considered:
- Specific items not included in the national register that are of particular risk to the prison.
- Ensure that operating controls are identified, developed and in place.
- The ICRs within the systems that need to be monitored are identified and scheduled.
Risk Areas
Risk areas may include practices:
- Where money is involved.
- Which affect prisoner rights.
- Which affect staff rights.
- Which affect the effective running of the prison.
- Where the prison may be brought into disrepute if the procedure is not functioning effectively.
Corrections Department NZ >Policy & Legislation >PS Policy and Procedures Manual >Section E Site Support >E.05 Internal Control >E.05.01.R1 Internal Control Monitoring (National Requirement)
