What is Internal Control System?

Internal control; It is an integrated process that is implemented by the institution's management and personnel, designed to provide reasonable assurance in achieving its set goals and realizing its mission, and affects the institution as a whole. Internal control is not just about financial transactions and reporting; It refers to all controls covering management, governance processes, strategy and other activities of the institution. The internal control system of every institution is not the same. Institutions and their controls; It differs according to organizational structure, corporate culture and management philosophy.

What are the Purposes of the Internal Control System?

• Activities are effective and efficient

• Reliability of financial reports

• Compliance with applicable legislation

• Protection of assets

• The effectiveness and efficiency of the activities of the institution; It is related to basic activity objectives such as the level of achievement of targets, performance, and benefit-cost structure.

• It includes issues such as the reliability of financial reports, recording and publishing financial data in a clear and understandable manner, and easy access to data.

• Compliance with current legislation includes the work that must be done to ensure that the activities carried out by the institution comply with legal regulations.

• Protection of assets includes securing all assets owned by the institution.

Components of the Internal Control System

1) Control environment standards

- Ethical Values ​​and Integrity

- Mission, organizational structure and tasks

- Delegation of Authority

2) Risk assessment standards

- Planning and Programming

- Identification and evaluation of risks

3) Control activities standards

- Control strategies and methods

- Determining and documenting procedures

- Separation of duties

- Hierarchical controls

- Continuity of activities

- Information systems controls

4) Information and communication standards

- Information and communication

- Reporting

- Recording and filing system

- Reporting errors, irregularities and corruption

5) Monitoring standards

- Evaluation of internal control

Internal audit Public Internal Control Standards 18 Standards and 79 General Conditions have been determined within the framework of the COSO model, INTOSAI Public Sector Internal Control Standards Guide and European Union Internal Control Standards.

Roles and Responsibilities of the Internal Control System

Management plays the biggest role in the effectiveness of Internal Control. Managers must establish appropriate policies and provide assurance to ensure that the internal control system operates effectively.

All personnel of the institution aim to carry out certain activities while performing their duties. These activities combine with other activities of the unit to achieve unit goals, and unit goals ensure that the goals of the institution as a whole are achieved. Employees at all levels of the organization produce information to be used in the internal control system and engage in activities that affect controls. Therefore, all employees are part of internal control and are responsible for its implementation.

• Senior Manager (Rector)

• Spending Units

• Financial Services Unit (Strategy Development Department)

• Internal Audit Unit