Section 1: Internal Control

PURPOSE/SCOPE

To provide an overview of the Risk Assessment element of internal control.

AUTHORITY

UT System policy UTS142.1 assigns direct responsibility to the Institutional Financial Reporting Officer to establish internal controls over the preparation of the Annual Financial Report. Risk assessment is an essential element of internal control.

UNIVERSITY GUIDELINES

Risk is any issue or event that could adversely affect the objectives or goals of an entity whether it be a specific department, center, college or the entire university. Identifying and assessing risks is critical to effective internal control because it is the first step toward managing those risks.

Risk assessment and mitigation should occur at multiple levels within UTSA. Executive leadership should identify and assess UTSA-wide risks to achieving UTSA's goals and objectives, and each unit code administrator and department/center/college management should be aware of, and mitigate, the risks unique to their area. Risk analysis includes the nature, likelihood and potential impact of each risk. For more information on UTSA risk assessment and management see University Risk Management Process.

For an overview of internal control see UTSA Financial Management Operational Guideline Internal Control Overview.

DEFINITIONS

REFERENCES/LINKS

• UTSA Audit, Compliance and Risk Services website
  (http://www.utsa.edu/acrs/)

• UT System policy UTS142.1 - Policy on the Annual Financial Report (http://www.utsystem.edu/policy/policies/uts142_1.html)

• UTSA Management Responsibilities Guide
  (http://www.utsa.edu/acrs/leadershipaccount/MRG/MRGDOC/MRG_home.html)

RELATED FORMS/WORKSHEETS

None at this time.

REVISION HISTORY