Internal Controls Policy
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.
Guidelines
The primary responsibilities of the accounting department consist of, but are not limited to, the
following:
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General Ledger
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Budgeting
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Cash and Investment Monitoring
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Asset Management
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Financial Management of Grants and Contracts
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Purchasing
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Accounts Receivable and Billing
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Cash Receipts
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Accounts Payable
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Cash Disbursements
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Payroll and Benefits
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Financial Statement Processing
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External Reporting of Financial Information
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Bank Reconciliations
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Compliance with Government Reporting Requirements
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Preparation for annual outside audit (includes draft reports, supporting schedules and
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notes)
An appropriate level of segregation of duties to perform each responsibility is critical to the
implementation of internal controls.