The Daily Bulletin Archive

The Internal Control Act of the State of New York requires Buffalo State College to communicate the following information on agency responsibilities and standards:

The internal control standards define the minimum level of quality acceptable for internal control systems in operation and constitute the criteria against which systems are to be evaluated. These internal control standards apply to all operations and administrative functions (both manual and automated), but are not intended to limit or interfere with duly granted authority related to development of legislation, rule making, or other discretionary policy making in an agency.

General Standards

1. Reasonable Assurance. Internal control systems are to provide reasonable assurance that the objectives of the systems will be accomplished.
2. Supportive Attitude. Managers and employees are to maintain and demonstrate a positive and supportive attitude toward internal controls at all times.
3. Competent Personnel. Managers and employees are to have personal and professional integrity and are to maintain a level of competence that allows them to accomplish their assigned duties, as well as understand the importance of developing and implementing good internal controls.
4. Control Objectives. Internal control objectives are to be identified or developed for each agency activity and are to be logical, applicable, and reasonably complete.
5. Control Techniques. Internal control techniques are to be effective and efficient in accomplishing their internal control objectives.
6. Continuous Monitoring. Agency heads are to establish and maintain a program of internal review designed to identify internal control weaknesses and implement changes needed to correct the weaknesses.

Specific Standards

1. Documentation. Internal control systems and all transactions and other significant events are to be clearly documented, and the documentation is to be readily available for examination.
2. Recording of Transactions and Events.Transactions and other significant events are to be promptly recorded and properly classified.
3. Execution of Transactions and Events.Transactions and other significant events are to be authorized and executed only by persons acting within the scope of their authority.
4. Separation of Duties. Key duties and responsibilities in authorizing, processing, recording, and reviewing transactions should be separated among individuals.
5. Supervision. Qualified and continuous supervision is to be provided to ensure that internal control objectives are achieved.
6. Access to and Accountability for Resources. Access to resources and records is to be limited to authorized individuals, and accountability for the custody and use of resources is to be assigned and maintained. Periodic comparison shall be made of the resources to the recorded accountability to determine whether the two agree. The frequency of the comparison shall be a function of the vulnerability of the asset.

Audit Resolution Standard

Prompt Resolution of Audit Findings. Managers are to (1) promptly evaluate findings and recommendations reported by auditors, (2) determine proper actions in response to audit findings and recommendations, and (3) complete, within reasonable time frames, all actions that correct or otherwise resolve matters brought to management's attention.

Public Officers Law
In addition, all state employees must abide by the laws governing ethical behavior contained in the Public Officers Law.

While many private companies and professional associations have their own codes of ethics, state code differs from these in that the state code is also the law. Like private codes of ethics, state code is a list of proscribed activities. The following is a summary of its provisions:

New York State employees are prohibited from engaging in any activity that is in substantial conflict with the proper discharge of their duties in the public interest, accepting other employment that would impair their judgment in the exercise of their official duties, or disclosing confidential information gained from their state positions.

State employees cannot use their official positions to secure unwarranted privileges for themselves or others. State employees with financial interests in a business entity should not engage in any transaction between the state and that entity that might be in conflict with the proper discharge of the employee's official duties. State employees also must avoid making personal investments in enterprises that might directly involve decision making or that might create a conflict of interest.

State employees cannot, by their conduct, leave the impression that they can be influenced based on their family relationship, rank, position, or influence. Nor should they act in a way that raises a suspicion among the public that they are likely to be engaged in acts that are in violation of their public trust.

No full-time state employee, any firm or association of which he or she is a member, or any corporation which he or she owns or controls can sell goods or services to any person, firm, or association that either is licensed or has its rates set by the state agency by which he or she is employed.

Violations of certain restrictions on business and professional activities or the financial-disclosure filing requirement may result in a maximum fine of $10,000. In lieu of a fine, the commission may refer the matter for criminal prosecution. Upon referral and conviction, a violation may be punished as a Class A misdemeanor.

Under Section 94(13) of the Executive Law, assessment of a civil penalty is final unless modified, suspended, or vacated within 30 days of imposition.

For any violations of Sections 73, 73-a, or 74, the Ethics Commission also may recommend that the appointing authority take disciplinary action, up to and including dismissal from employment. Where applicable, discipline must be taken in accordance with the provisions of Section 75 of the Civil Service Law or the particular collectively negotiated agreement between the employee's union and the state.

Contact Gary Phillips, associate vice president and comptroller, at ext. 4312 with questions about the Internal Control Act or Public Officers Law.