Why Are Controls Important?

Your department benefits by:

  • Reducing and preventing errors in a cost-effective manner
  • Deterring fraud
  • Ensuring priority issues are identified and addressed
  • Protecting employees
  • Providing appropriate checks and balances

Four Keys to Great Internal Control Practices

With tightened resources, it’s more important than ever to minimize risk and focus on these key areas:

  • Separation of duties 
    Divide responsibilities between different people so one individual doesn’t control all aspects of a transaction.
  • Authorization and approvals
    Be sure that only a person with delegated authority approves or authorizes transactions.
  • Security of assets
    Safely secure equipment, cash, inventory and resources. Reduce the risk of unauthorized use. Count periodically and compare with amounts shown on control records.
  • Review and reconciliation
    Regularly examine transaction records against official University records to verify accuracy, appropriateness and proper compliance.

Build best practices into your business operations as the standard. Share and communicate information. And remember that everyone at UCLA contributes to an effective control environment.