Policy Statement

Management and the LCVR Board of Directors highly value effective internal controls; therefore,

it is the objective of LCVR to establish and follow the strongest possible internal controls.

Background

The safeguarding of assets and the reliability of financial records are the primary objectives of

internal accounting controls. Accounting controls are concerned with systems of authorization

and approval, controls over assets, internal auditing and all other financial matters. In order to

achieve effective internal accounting control, functions should be separated, so that no one

person should be in a position where he or she can perform all aspects of an activity.

The primary responsibilities of the accounting department consist of, but are not limited to, the

following:

General Ledger
Budgeting
Cash and Investment Monitoring
Asset Management
Financial Management of Grants and Contracts
Purchasing
Accounts Receivable and Billing
Cash Receipts
Accounts Payable
Cash Disbursements
Payroll and Benefits
Financial Statement Processing
External Reporting of Financial Information
Bank Reconciliations
Compliance with Government Reporting Requirements
Preparation for annual outside audit (includes draft reports, supporting schedules and
notes)

An appropriate level of segregation of duties to perform each responsibility is critical to the

implementation of internal controls.