INTERNAL CONTROLS                                                                                                              34-02-001

                                                                                                                                                                         

INTERNAL CONTROLS

 

POLICY STATEMENT.

 

The Division of Veterans Health Care Services requires each of the New Jersey Veterans Memorial Homes (VMH) to establish an Internal Controls Program pursuant to the Department of Treasury’s circular letter entitled “Annual Internal Control Reporting” 03-08-OMB, effective 01/02/03.  All branch agencies are required to use the Internal Control Assessment questionnaire that incorporates the methodology contained in the report entitled Internal Control – Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).  All executive branch agencies must use this questionnaire when performing their annual Internal Controls Assessment, unless specifically exempted by OMB.

 

PURPOSE.

 

A. This policy and procedure serves to ensure that each of the New Jersey Veterans Memorial Homes implement an Internal Controls Program designed to:

 

1.       Establish a standard departmental procedure for the review and assessment of the department’s internal control system and methods.

 

2.       Focus on the agency’s transaction or event cycles that include agency management, financial program and administrative matters.

 

3.       Ensure that internal controls systems have been established and are operating as intended.

 

4.       Ensure that the established systems fully comply with the general Internal Control Standards and

      Guidelines Process issued with Treasury Circular Letter 03-08-OMB.

 

5.       Identify all material weaknesses within the system and corrective actions needed to ensure compliance with Treasury Circular Letter 03-08-OMB issued by the Department of Treasury, Division of Administration on January 02, 2003.

 

6.       Coordinate the preparation of the certification statement required on the condition of the departments’ internal controls.

 

PROCEDURE:

 

A.  The New Jersey State Veterans Homes shall take steps to establish standards and guidelines for an Internal Control Program to adequately ensure a high quality of services and operations:

 

1.       Obligations and costs are in compliance with applicable law.

 

2.       Fund, property, and other assets are safeguarded against waste, loss, unauthorized use

       or misappropriation.

 

3.       Revenues and expenditures applicable to agency operations are properly recorded

       and accounted for to permit the preparation of accounts and reliable financial and

       statistical reports, and to maintain accountability over the assets.

 

 

 

 

 

 

INTERNAL CONTROLS                                                                                                              34-02-001

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INTERNAL CONTROLS

 

 

4.       Programs and operations are administered to adhere to policies, regulations, and standards mandated by internal and external authorities in order to maintain certifications, licensing and other approvals, and quality services to the population served.

 

5.       An Internal Controls System is the organization and the sum of the methods and measures used to achieve the objectives of internal control in all areas and/or departments of the New Jersey Veterans Memorial Homes.

 

                      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised: January 2007