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:

​

  • 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.