Need for Adherence to Internal Controls
Internal control, a major part of managing an organization, comprises the plans, methods and procedures used to meet our mission, goals and objectives. Internal controls also serve as the first line of defense in safeguarding assets and in preventing and detecting fraud, waste, abuse and possible errors. Internal controls help managers achieve desired results through effective stewardship of resources, support performance-based management and are intended to provide reasonable assurance regarding the achievement of objectives in all aspects of UMDNJ operations including the following categories:
- Effectiveness and efficiency of operations including the use of UMDNJ’s resources;
- Reliability and accuracy of financial reporting, including reports on budget execution, financial statements and other reports for internal and external use; and
- Compliance with applicable laws and regulations.
All business units or department heads are specifically responsible for ensuring that internal controls are established, properly documented and maintained for activities within their jurisdiction and that internal controls set by the UMDNJ Board of Trustees and/or UMDNJ management are followed. Any person entrusted with funds, including principal investigators, is responsible for ensuring that adequate internal controls exist over the use and accountability of such funds and to adherence to internal controls which may be set by the Board or management.
