Internal Controls Assessment

Internal Controls Assessment

Internal Controls Assessment Basics

Each major business unit within UVA is responsible for the evaluation and continuous monitoring of the internal control environment. This includes ongoing assessment that the fiscal activities and work performed within the unit are following established procedures and best practices and are in compliance with the policies and guidance that govern the work.

An effective system of internal control:

  1. Provides accountability for meeting program objectives
  2. Promotes operational efficiency
  3. Improves the reliability of financial statements
  4. Strengthens compliance with laws and regulations
  5. Reduces the risk of financial or other asset losses due to fraud, waste, or abuse

The Internal Controls Assessment is intended as a unit-level review of these activities, in support of the annual ARMICS certification that is completed and submitted on behalf of the University to the Commonwealth. Additionally, the Internal Controls Assessment provides business units with the opportunity to reflect on the recently closed fiscal year and be well-positioned to address any questions or concerns for the current fiscal year.

Internal Controls Assessment Evaluation and Monitoring

The Internal Controls Assessment is composed of questions designed to evaluate and monitor the internal control environment. 

Here are the twelve areas to monitor: 

  1. Basic Financial Management
  2. Financial Management – Handling of Cash
  3. Financial Management – Billing and Accounts Receivable
  4. Financial Management – Petty Cash
  5. Financial Management – Procurement
  6. Financial Management – Gifts
  7. Financial Management – Tax
  8. Financial Management – Sponsored Programs
  9. Financial Management – Asset Management
  10. Decorative Art
  11. Personnel Management
  12. Information Security and Records Management

An optional thirteenth section is provided for the individual to provide additional business unit information in a free text format.

Internal Controls Assessment Process

Following the implementation of a new finance system, the previous Internal Controls Assessment was reviewed and revised to account for additional controls, internal procedures, and changes to the business environment. The enhanced Internal Controls Assessment is currently being piloted throughout the University units.

A high-level process flow for the Internal Controls Assessment has been provided below.

Internal Controls Assessment Flow larger

Internal Controls Assessment Example and Resources

The Internal Controls Assessment and a policies and resources document to guide completion of the individual sections of the assessment has been provided below for reference.

2023 Internal Controls Assessment for Business Units Survey Questions

Internal Controls Assessment for Business Units - Policies and Resources