What is the Internal Control Action Plan?
Internal control; Law No. 5018 stipulates theestablishment of internal control systems in Public administrations. In this respect,establishment of Information and communication networks is an integratedprocess implemented by the administration and personnel with the determinationof long-term and short-term objectives of organizations and it is designed toprovide a reasonable assurance for the achievement of pre-determined objectivesand the completion of its mission, affecting the institution as a whole.
Internal control does not only refer to financialprocedures and reporting but refers to all controls that encompass and relateto the administration, administrative processes, stragegy and other operationsof an organization.
Objectives of the InternalControl Action Plan System:
· Ensuringefficient and effective operation
· Reliabilityof Financial Reports
· Compliancewith applicable regulations
· Protectionof assets
· Efficientand effective operation depends on the fundamental operational objectives of anorganization, such as the ratio of cleared objectives, performance, benefit andcost structure.
· Reliabilityof financial reports involve matters such as the clear and legible recordingand publication of financial data, and easy accessibility.
· Compliancewith the applicable law no. 5018 includes the work that has to be carried outto ensure compliance of the operation with statutory regulations andrequirements.
· Protectionof assets involves securing all assets owned by the organization.
Roles and Responsibilitiesin Internal Control
The most major part in the effectivenessof Internal Control is played by the administration. The administrators mustform and establish policies to ensure the effective operation of the internalcontrol system and must provide guarantees.
All of the personnel in the organizationaim to carry out certain activities while performing their duties. Theseactivities, combined with the other activities of the department, ensure theachievement of the department's objectives, and the department's objectivesmerge together to ensure the achievement of corporate objectives. Employeesfrom all levels in the organization generate the information to be used for theinternal control system and engage in activities that affects the control.Therefore all employees are a part of the internal control and are responsiblefor its implementation accordingly.
Components of the PublicInternal Control System
1. Control environment standards
· Ethical values and integrity
· Mission, organizational structure and duties
· Competence and performance of personnel
· Delegation of authority
2. Risk assessment standards
· Planning and programming
· Determination and assessment of risks
3. Control activities standards
· Control strategies and methods
· Determination and documentation of procedures
· Segragation of duties
· Hierarchical controls
· Continuity of activities
· Information system controls
4. Information and communication standards
· Information and communication
· Reporting
· Recording and filing system
· Notification of faults, irregularities and corruption
5. Monitoring standards
· Internal audit
· Assessment of internal control