Internal Controls - Controlling Risk in the Workplace: The Manager's Role
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Chapter 7: What if There is a Breakdown in Control?
Dear Captain Control (CC)
Dear C.C., I've just been hired as the manager. While reviewing the department's activities, I noticed that it requires 4-levels of approval, and can take up to a week to spend any money from our petty-cash account. The time spent shuffling the paper costs more than $200 in the account. What should I do? - Dee C.
Dear Dee,
As the manager, you are responsible for establishing the control activities for your department. Internal controls are about being cost effective and efficient. In this case, you would want to adjust the costly control by changing the process.
I would also encourage you to discuss the change in process with your staff and encourage them to bring other instances like this to your attention.
While elimination of the control is not always the answer, you do always want to make sure that the control is appropriate for the level of risk present.
Dear C.C., My boss is busy – we all are. To ease her workload she has delegated the preparation of the overtime approval report to her assistant, Joyce, who frequently works overtime. Once Joyce is finished with the report, she sends it directly to the finance office. Joyce has also been approving time sheets because they are due when her manager has a standing meeting. Should I be concerned? – Anonymous
Dear Anonymous,
You are right to be concerned. This is a breakdown in separation of duties, a very common internal control method. While there may not be any fraudulent activity on Joyce’s part, you still need to share your observations with your manager. Controls are important and should not be circumvented by anyone. If you are not comfortable discussing the matter with your manager, I’d recommend that you speak to her supervisor or the Internal Control Officer.
Dear C.C., I work late, and recently I've noticed another manager on my floor snooping through filing cabinets that have client records containing social security numbers and credit information and then spending a lot of time at the photocopier. My manager is close friends with this person and I don't think I could go to him. What should I do? – Terezika D.
Dear Terezika,
Thank you for paying attention. Internal controls really rely on employees, and you play an important role. I'd recommend bringing your concern to your manager's boss. He or she may direct you to share your information with the Internal Control Officer, Internal Auditor, or even the State Inspector General.
Dear C.C., I have a suggestion for improving my workplace, what should I do? - Katja H.
Dear Katja,
Be proud of yourself. Being a proactive thinker is an invaluable skill. You should share your idea with your supervisor or manager. Best of luck!
Copyright 2014
New York State Governor's Office of Employee Relations