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Understanding Internal Controls

Understanding Internal Controls A Reference Guide for Managing University Business Practices Introduction As servants of public trust, the University System of Georgia (USG) has a great responsibility to utilize the resources provided in the most effective and efficient ways possible while adhering to laws and regulations. A strong system of Internal Controls is paramount to properly managing USG s resources within the related business processes. Every employee within the USG has some role in effecting Internal Controls .

Organizational structure. The organizational structure of the entity is appropriately designed to promote a sound control environment. Authority and responsibility, appropriate reporting lines, and free flow of information across the organization provide unfettered influence to effectively run the entity and support effective financial reporting.

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