Internal Controls

Internal Controls

Internal controls are the tools a manager has to ensure that his or her program is functioning properly and efficiently. Controls help managers increase the likelihood that they will be able to achieve their goals for their department by minimizing risks. Internal controls are also used to verify the reliability of financial information and deter fraud.

The time sheet that you fill out every week that is also reviewed by a supervisor is a simple internal control used to ensure employees stay on task and use time appropriately. Creating a review panel to evaluate construction bids is a more sophisticated control designed to protect the integrity of the public bidding process. Having employees sign a code of conduct is a "soft" control designed to promote ethical behavior in the workplace.

If you would like to read more about internal controls, the GAO has a document entitled Standards for Internal Control in the Federal Government, which provides useful advice on designing and using controls.