Internal Controls

Internal Controls

Effective internal controls provide deans, department chairpersons, college and academic support unit fiscal officers, central offices, and the Board of Trustees with reasonable assurance that institutional objectives have been achieved through sound financial management.  Internal controls must be in place in each unit to create an environment of accountability with effective monitoring and oversight. 

Internal Control Structure

Each unit must establish and maintain an internal control structure, using the Internal Control Structure Template as a guide.  The internal control structure must be reviewed and approved by the unit leader and senior fiscal officer and distributed to individuals with financial responsibility on an annual basis. 

Deviations from standard university policies and business processes must be submitted by the senior fiscal officer in advance and approved annually using the Business and Finance Policy Waiver Request.     

Please refer to the university’s Fiscal Stewardship Policy for additional details.

Delegation of Signature Authority

In keeping with the university's Fiscal Stewardship Policy, each area is required to develop and maintain a delegation of authority listing approved by the dean or vice president. The delegation of signature authority structure must specify for each area and each transaction type the individual or individuals who are authorized to approve transactions for business purpose and compliance. Individuals should only be authorized to approve business purpose on transactions initiated by individuals for whom they have sufficient authority.

The Fiscal Stewardship Policy outlines all Delegation of Signature Authority Structure requirements.  Please see the Signature Authority Guidance for additional information.

Annual Sub-Certification

The intent of the University’s sub-certification process is to provide a reasonable, not absolute, level of assurance that internal controls are in place and functioning properly in the colleges and vice-presidential units.  Each unit must annually certify that it complies with the requirements outlined in the annual sub-certification process, managed by the Controller’s Office. If a unit is not in compliance, the unit must identify specific plans to resolve its noncompliance. The senior fiscal officer is responsible for facilitating this process. Business and Finance annually reviews and reports on the annual sub-certification process to the Audit and Compliance Committee of the Board of Trustees.

For questions regarding internal controls, please contact CTL-FDMRequests@osu.edu