Fall 2015 Issue of Horizons

PUBLIC SECTOR

Elected Officials & Internal Control: A Time to Revisit by Rodney Rice, CPA, CGMA

G overnmental entities come in all different shapes and sizes, large and small, complex and basic. However, one factor unique to all is the oversight responsibilities and fiduciary obligations of elected officials. Governing bodies provide strategic direction, constituent representation and management accountability over a variety of operational aspects of their respective organizations. In today’s environment where security breaches and fraudulent activity have become an unfortunate cost of doing business, perhaps never before has there been a greater need for a system of effective internal controls. Further,

recent economic cycles have resulted in organizations learning to function with less.

As a result, it may be timely for a governmental entity to reassess its governing bodies’ knowledge of, and possible participation in, the system of internal controls over operational, reporting and compliance objectives. Management and the governing body (e.g. boards and councils) have complementary roles over this system. Management is responsible for designing, implementing and consistently executing the system of internal controls.

page 50 | horizons Fall 2015