Internal Controls, what are they?
process, effected by the entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting, and compliance.

Who provides the framework?
COSO: Committee of Sponsoring Organizations of the Treadway Commission

The framework provides 3 objectives

1.      Operations

2.      Reporting

3.      Compliance

Objectives (ORC)

1.      Operations

2.      Reporting

3.      Compliance

Components (mnemonic)

1.      Control Environment - set of standards, processes, and structures that provide the basis for carrying out internal control across the organization.

2.      Risk Assessment - involves a dynamic and iterative process for identifying and assessing risks to the achievement of objectives.

3.      Information & Communication - are the actions established through policies and procedures that help ensure that management’s directives to mitigate risks to the achievement of objectives are carried out.

4.      Monitoring Activities - are the continual iterative process of providing, sharing, and obtaining necessary information.

5.      Existing Control Activities-  represents the process of ongoing and periodic evaluations to ascertain whether the components of internal control are present and functioning. To the extent control deficiencies are found, they are communicated in a timely manner to responsible parties, including senior management and elected officials, for corrective action.

Internal Controls, what are they?
process, effected by the entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to operations, reporting, and compliance.

Who provides the framework?
COSO: Committee of Sponsoring Organizations of the Treadway Commission

The framework provides 3 objectives

1.      Operations

2.      Reporting

3.      Compliance

Objectives (ORC)

1.      Operations

2.      Reporting

3.      Compliance

Components (mnemonic)

1.      Control Environment - set of standards, processes, and structures that provide the basis for carrying out internal control across the organization.

2.      Risk Assessment - involves a dynamic and iterative process for identifying and assessing risks to the achievement of objectives.

3.      Information & Communication - are the actions established through policies and procedures that help ensure that management’s directives to mitigate risks to the achievement of objectives are carried out.

4.      Monitoring Activities - are the continual iterative process of providing, sharing, and obtaining necessary information.

5.      Existing Control Activities-  represents the process of ongoing and periodic evaluations to ascertain whether the components of internal control are present and functioning. To the extent control deficiencies are found, they are communicated in a timely manner to responsible parties, including senior management and elected officials, for corrective action.

In today's episode, we discuss the importance of internal controls to help organizations achieve their objectives. Do your organization have reasonable controls in place to operate, report, and stay compliant? Do you understand the COSO framework? Tune in to learn.

Proper handling of indirect costs contributes to the organization's overall sustainability and financial health. Effectively managing and accounting for indirect costs is crucial when dealing with Federal and Private grants.

As a grant professional managing a grant, you have the power to make a positive impact on the world. By adhering to the guidelines set forth in 2 CFR 200, you can ensure that your grant is managed effectively and in a way that meets performance evaluation and financial reporting standards. Remember that your work is key to making a difference in your grant programs.