• Forms
• NCAS
• CAFR Year-End
• CMCS/Central Compliance
• E-Commerce/ SECP
• Central Payroll
• Statewide Foriegn Nationals Compliance Program
• Policies
• Account Classification
• Accounts Receivable
• Capital Assets
• Cash Management
• Central Payroll (Universities)
• Electronic Commerce
• Federal and State Compliance
• Foreign Nationals
• Human Resources Accounting
• Internal Controls
• Payment
• Procurement Card
• Records Retention and Reports Retention
• Revenues and Expenditures
• State Financial Reporting
• Tax Compliance
• Uniform North Carolina Accounting System

Internal Control Standards Policy

Authority:
General Statutes 143B-426.39
Statements on Auditing Standards (SAS) No. 55
Statements on Standards for Attestation Engagements (SSAE) No. 2

Effective Date:
7/1/95

NOTE : The term agency as used in this section encompasses all entities of the State of North Carolina that are considered part of the primary government.

Policy:
Every Chief Financial Officer (CFO) of every agency and component unit is responsible for implementing internal control standards for areas under their control. Internal control standards define the minimum level of quality acceptable for internal control systems. The standards are designed to ensure that:

• Financial transactions are executed according to management's general or specific authorization

• Financial transactions are recorded as necessary to:

• Prepare the financial statements to conform with GAAP.

• Account for assets.

• Access to assets is permitted only according to management's authorization

• The asset records are compared with the existing assets at reasonable intervals and action is taken to reconcile any differences.

Additional Information:

All agencies and component units within the State of North Carolina's reporting entity are required to complete a Self-Assessment of Internal Controls questionnaire, which indicates the strengths and weaknesses in the policies and procedures for each agency and component unit within the reporting entity. The internal control questionnaire is a management tool verifying that strong internal controls are implemented to prevent inconsistencies, inaccuracies, or weakness in the financial records.

Every CFO is responsible for completing the questionnaire for areas under their control. For areas not under the CFO's control, the appropriate manager is responsible for completing the questionnaire. The questionnaire should be completed for the current operation of each cycle. Management should analyze the results of the assessment and make changes as necessary to correct any deficient areas. The agency or component unit should keep a copy of the questionnaire for review by OSC, the Office of the State Auditor (OSA), or their independent auditor if they are not audited by OSA.