Internal Controls & Oversight

Finance Directors play a key role in ensuring appropriate internal control structure has been established and communicated, the overseeing activities to ensure compliance.

Internal Control Structure

Key department controls should be formally documented and approved by the Dean or Division leader and distributed to all employees within the unit who have responsibility for financial related functions or processes. This helps to ensure transactions are executed in accordance with management's general or specific authorization.

Finance Directors are responsible to ensure key internal controls, including monitoring and oversight, are communicated at least semi-annually to the department leaders and staff. 


Once internal controls are established, Finance Directors must ensure that activities are monitored, in order to ensure the reliability of accounting and/or operational controls. Oversight includes pointing out errors, omissions and inconsistencies in the application of procedures. Examples of monitoring include review of monthly unit reports at an account level, analytical review of actual vs. budgeted results and actual vs. prior year expenses, trend analysis, and detailed review of expense reports prior to approval. Any unusual variances or transactions should be reviewed and if in doubt, escalated to a supervisor.