Risk Assessment

The State Administrative and Accounting Manual, issued by the Office of Financial Management, defines internal control, basic internal control requirements, and agency responsibilities for assessing and minimizing risk through internal control assessment. The requirments include participation by all levels of the organization in an annual risk assessment and internal control evaluation. For the past several years, the staff of the Office of Internal Auditing has independently completed this risk assesment and internal control evaluation. The process of assessing risk is an opportunity for management and directors to look at their operations, derermine the areas of signigicant risk, and evaluate what actions can be takem to minimize the risk and enhance the effectiveness and efficiency of the operation, while following applicable laws and regulations. This risk assessment and internal control evaluation can be integrated into your strategic planning process and program review.

The risk assessment questions assess risk based on factors determined by industry standards and quidelines presented by the Office of Financial Management.

Internal control questionnaires in SAAM related to the significant areas of risk including operations, budget, payroll, inventory, cash and equipment. These questions focus on compliance requirements and are designed to determine areas of internal control weaknesses. The questions contain references to State laws and regulations, University policies, and other directives and operational guidelines forming the compliance parameters. This process is required to be completed annually.

Based on the results of the completed questions:

• Assess the level of risk for your area as designated by the responses to the survey questions.

Delegate the responsibility to complete the surveys for all departments with in your area of responsibility. This should be according to the attached list prepared by my office or as revised per your request. Once the surveys are completed at the department level, your review of them is essential.