Internal Controls

The purpose of this page is to provide information to FAMU regarding internal controls. This content supports the ongoing training on internal controls being offered by the Division of Audit.

 

Internal Controls

Frequently Asked Questions

Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Internal controls are not restricted to the University’s finances. Internal controls are also applied to the University’s operations. We all play some part in ensuring the operations of the University are effective and efficient in reaching the University’s goals and objectives.

Faculty have responsibility for ensuring that financial and operational controls are in place and functioning for a variety of areas. They are also responsible for reporting any breakdown in controls that may come to their attention. Here are just a few of the many examples of internal controls where faculty could be responsible:
  • Instruction (Preventative Control): Adherence to training requirements and performance measures to ensure competency and quality of instruction.
  • Collective Bargaining Agreement (Corrective Control): The University has established a grievance process to which the faculty and administration must adhere. This control is put in place to ensure that both parties are treated fairly in the process.
  • Faculty Careers (Directive Control): The University has defined and communicated the requirements for hiring, promotions, and retention. These requirements that each faculty must meet, are directive controls.
  • Grade Appeal Process (Detective Control): The University has established a grade appeal process for students allowing them to appeal their grades for a variety of reasons. This process allows the University to detect biased or inaccurate grading practices of faculty. The same process also allows the University to confirm the fairness and accuracy of the grading process.
  • Research (Accounting Control): The University must monitor grant disbursements on amregular basis to determine if billing rates include unallowable or buried costs.

Faculty, like staff, are employees of the University. They receive pay and benefits, perform travel, possess p-cards, access sensitive and confidential data, and are entrusted with the care and protection of University assets (laboratories, classrooms, equipment, etc.). All of these areas are governed by a comprehensive set of internal controls with which faculty must adhere.

All university managers are responsible for planning, directing, staffing, implementing, and monitoring internal controls to ensure efficient and effective operations, reliable financial and operational reporting, and compliance with requirements. 

If you have concerns regarding internal controls please contact the following person(s) for resolution if those concerns relate to:

 
1. Inefficient or ineffective operations
  • Contact your immediate supervisor, dean, and/or vice president for your division
2. Unreliable financial reporting

or
3. Non-compliance with a law, regulation, policy, or procedure
  • Rica Calhoun
    Chief Compliance and Ethics Officer. Office of Compliance and Ethics (OCE)
  • rica.calhoun@famu.edu
  • 866-445-4YOU

To OCE Website To Compliance and Ethics Hotline

4. Fraud, waste, or abuse

To DoA Website To Compliance and Ethics Hotline

  • The FAMU Compliance and Ethics Hotline and web reporting system provide a supplementary reporting channel where an individual is unwilling or unable to use the internal resources available, including instances where he or she wishes to remain anonymous.
  • If you are not sure which of these categories your concerns fall within, please contact Deidre Melton, Associate Vice President for Audit/Cheif Risk Officer, by at email deidre.melton@famu.edu or phone at 850-599-3131 for assistance.

 

 

Preventative Fraud Controls

Standards of Conduct
The University has established several policies to guide students and/or employee conduct for the prevention of fraud:

  • Academic Honesty Policy
  • Guiding Principles for Fiscal Affairs
  • Identity Theft Prevention Policy and Procedures
  • University Code of Conduct
  • Student Code of Conduct
  • Fraud Policy

System Access and Process Controls
Within iRattler, the University’s enterprise resource planning software, the University has established automated controls to prevent certain financial and operational frauds from occurring.

Detective Fraud Controls

Monitoring and Reconciliations
The University has established various monitoring and reconciliations processes throughout the University to detect instances
of fraud. For example, Procurement Services and management, have been charged with establishing procedures for detecting and reporting p-card related fraud. One procedure includes the monthly statement reconciliation process where fraudulent purchases are detected.

Compliance and Ethics Hotline
The University has established a Compliance and Ethics Hotline which allows the University to detect instance of fraud through reports made to the hotline by students, employees, and interested parties. The Division of Audit has the primary responsibility for the investigation of all suspected fraudulent acts.

Yes. Please contact Joseph Maleszewski (joseph.maleszewski@famu.edu) or Deidre Melton (deidre.melton@famu.edu) to schedule an internal controls training or consultation for your department.

 

The COSO Cube

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Controls cube is a diagram that shows the relationship among all parts of an internal control system. Together, they develop guidance documents to aid organizations with risk assessment, internal controls and fraud prevention

Internal Controls Resources