Internal control helps an entity run its operations efficiently and effectively, safeguard assets, report reliable information about its operations, and comply with applicable laws and regulations. The U.S. Government Accountability Office (GAO), Standards for Internal Control in the Federal Government, (known as the Green Book), provides the overall framework for establishing and maintaining an effective internal control system for federal agencies, state, local, and quasi-governmental entities. This framework provides a common understanding and terminology for internal control in government.
The State of Minnesota has adopted the Green Book as its internal control standard. Pursuant to MN Statute Section 16A. 57, Subdivision 8, the head of each executive branch agency is responsible for designing, implementing, and maintaining an effective internal control system within the agency. According to MMB Statewide Operating Policy 0102-01, Internal Control System, the internal control system established must be consistent with the standard of the Green Book framework.