Fall 2015 Issue of Horizons

PUBLIC SECTOR

In summary, an effective system of internal control consists of a collection of people, policies and processes working together to provide reasonable assurance that an entity continually achieves its operational, reporting and compliance objectives. No system can ensure complete assurance against failure as it is prone to human error, cost and other natural limitations. While the primary responsibility for the system of internal control resides with management, a basic understanding and the clear support and prioritization of an effective system of internal control by elected officials is important. It will help to provide reasonable assurance that material misstatements, whether caused by error or fraud, are less likely to occur.

certainly won’t be sufficient for tomorrow. Circumstances change, employee turnover occurs, economies cycle and technology evolves. What provided for effective control a few years ago may not be appropriate today. As a result, preventative maintenance is needed to diagnose and adjust, or possibly to simply confirm, the current effectiveness of the other four elements of internal control. As the design, implementation and execution of internal control resides primarily with management, monitoring is an area in which the governing body, or more likely their designee such as an audit or finance committee, can play a key role in assessing the effectiveness of the internal control system.

RubinBrown’s Public Sector Services Group Through our extensive list of clients, including many cities and governmental entities, we understand the issues unique to the public sector.

Jeff Winter, CPA, CGMA — St. Louis Partner-In-Charge Public Sector Services Group 314.290.3408 jeff.winter@rubinbrown.com

Ted Williamson, CPA — St. Louis Partner & Vice Chair Public Sector Services Group 314.678.3534 ted.williamson@rubinbrown.com

Kaleb Lilly, CPA — Kansas City Partner & Vice Chair Public Sector Services Group 913.499.4417 kaleb.lilly@rubinbrown.com

Rodney Rice, CPA, CGMA — Denver Partner Public Sector Services Group 303.952.1233 rodney.rice@rubinbrown.com

Cheryl Wallace, CPA — Denver Partner & Vice Chair Public Sector Services Group 303.952.1288 cheryl.wallace@rubinbrown.com

page 54 | horizons Fall 2015