This bulletin provides an overview on how CPD grantees should be implementing internal controls. Internal controls are processes put into place by management to help an organization operate efficiently and effectively to achieve its objectives. Managers often think of internal controls as the responsibility of accountants and auditors. The fact is that management at all levels of an organization is responsible for ensuring that internal controls are set up, followed, and reviewed regularly. The purpose of internal controls are to:
- Protect assets
- Ensure that records are accurate
- Promote operational efficiency
- Achieve organizational mission and goals
- Ensure compliance with policies, rules, and regulations
In administering various HUD Office of Community Planning and Development (CPD) programs, all grantee and subrecipient organizations deal with risks to achieving their organizational and programmatic goals. No rules, bad rules, or failure to follow rules disrupt the effectiveness of the internal controls and, ultimately, mission delivery. This bulletin explains the five internal control standards and ways to implement them effectively. It also provides case examples of deficiencies in internal controls and how those issues could have been avoided through use of internal controls.
View the Integrity Bulletin: Implementing the Five Key Internal Controls.
View all Integrity Bulletins.