Policy
North Carolina General Statute §143D-7 provides that “The management of each State agency bears full responsibility for establishing and maintaining a proper system of internal control within that agency.”
Agency management may not delegate its responsibility for establishing and maintaining a proper system of internal control. Agency management must establish and reinforce a strong control environment through practice and action which embodies these principles:
- Sound integrity and ethical values, particularly of top management;
- Where appropriate, a board which understands and exercises oversight responsibility related to internal control;
- A management philosophy and operating style which supports achieving effective internal control;
- An organizational structure which supports effective internal control;
- Retention of individuals competent in matters subject to internal control;
- Management and employees are assigned appropriate levels of authority and responsibility to facilitate effective internal control; and
- Human resource policies and practices are designed and implemented to facilitate effective internal control.
Procedures
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Accounting Guidance
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Related Documents (Memos/Forms)
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Revision History
- 1/23/2025 - Formatted for new ncosc.gov website
Policy Owner
Other