The University evaluated and updated its internal control monitoring procedures so that the procedures will be properly followed and documented. The University have two basic categories of internal control ? preventive and detective. An effective internal control system will have both types as ea...
The University evaluated and updated its internal control monitoring procedures so that the procedures will be properly followed and documented. The University have two basic categories of internal control ? preventive and detective. An effective internal control system will have both types as each serves a different purpose. Preventive controls aim to decrease the chance of errors and fraud before they occur. Preventive controls are essential because they are proactive and focused on quality. Preventive controls include pre-approval of actions and transactions, access controls, employee screening and training etc. To protect those who handle finances from mistakes, false accusations or temptations, the following procedures have been enacted. Bethesda University checks require at least one signature. Money received from students is recorded in two places on the computer: QuickBooks (accounting software program), and Populi (school management system). In each transaction, money is received and recorded by the accountants. Bank deposits are conducted by the accountants, and all deposit records are kept in a binder with copies of all deposit slips and canceled checks. Once a month, the accountant does bank reconciliation by comparing QuickBooks records with bank stubs, bank statements, cleared checks, and monthly payment records. The expenditures are categorized in the appropriate budget category. Detective controls are designed to find errors or problems after the transaction has occurred. Detective controls are essential because they provide evidence that preventive controls are operating as intended, as well as offer an after the fact chance to detect irregularities. Detective controls include monthly reconciliations of departmental transactions, reviewing organizational performance, physical inventories. The University makes sure that the internal control over the accounting process and the federal awards and institutionally and adequately operate monitoring activities to monitor the internal control system over compliance. The Finance Committee at Bethesda University is responsible for the review, and the quality assurance. Person Responsible for Corrective Action Plan: Sheng Wang, Chief Financial Officer Anticipated Date of Completion: June 30, 2023