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Internal Controls

Internal Control Definition –procedures and process put in place to prevent fraud, promote accountability, and ensure the integrity of financial data.

Internal Control and Accountability

We are the State's central resource for well-designed approaches to internal controls and fraud mitigation. Our mission is to promote effective and efficient state government by providing practical and relatable information to support the design, implementation, and maintenance of effective systems of internal controls. We proactively help state agencies safeguard public resources and minimize incidences of fraud, waste, and abuse.

Statutory Responsibilities

Internal Control Framework and Definition

Green Book Components and Principles

The State of Minnesota uses the U.S. Government Accountability Office’s Standards for Internal Control for the Federal Government as our official internal control framework. This framework is more commonly referred to as the “Green Book” which approaches internal control through a hierarchical structure of 5 components. These 5 components represent the highest level of the hierarchy of standards for internal control in government. These must be effectively designed, implemented, and operating together in an integrated manner, for an internal control system to be effective. The related 17 principles support the effective design, implementation, and operation of the associated components and represent requirements necessary to establish an effective internal control system.

Control Environment is the foundation of an effective internal control system and begins with the "tone at the top" - the words and actions of the agency's leadership.

Risk Assessment helps with internal and external risks being identified, analyzed, and responded to for an organization to achieve objectives and mission.

Control Activities are actions put in place by management to address and mitigate risk and are commonly referred to as internal controls.

Information and Communication are vital throughout each level of the organization to be effective. Management needs access to timely, relevant, and reliable communication related to internal and external events.

Monitoring ties all other internal control components together. Monitoring is the way an organization knows if things are continuing to operate effectively.

Fraud Prevention, Detection, and Reporting

Fraud Prevention and awareness are important parts of a strong system of internal control. Each year, Internal Control and Accountability provides the enterprise resources and training which aligns with International Fraud Awareness Week. Visit our Fraud Awareness website for more on prevention and detection techniques, along with how to report any suspect fraud, waste, and abuse of state resources.

Contact Us – Internal Control and Accountability

Please email Internal Control and Accountability for any assistance with your internal control needs, for more information, or if you have any questions. Thank you!

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