Deloitte Dbriefs Program Guide | April - June 2014
The ten myths about internal controls & the
1. Ten Myths About Internal Controls & the Property Tax Collection Office IAAO Annual Conference September 1, 2010 Presented by Tax Collection Council members Tina Morton, Sylvia Romo & Kim Simpson
2. Myth #1: few care about internal controls Definition Audit, auditors and their roles Does the public care? Why everyone in the office should care
3. Myth #2: Internal Controls are the same in all offices Offices vary with responsibilities Effect of operations other than tax collection Size, location and use of technology
4. Myth #3: Audits always find weakneses in internal controls Define audit and types of audit Internal audit a performance evaluation tool Audit covers specifics – may not address human factors
5. Myth #4: Collection offices are not impacted by others’ criminal acts Discuss concept of public trust and how it has eroded with private / public failures Define voluntary compliance Relate voluntary compliance to public trust – what does having it mean for our collection rates? Perception of wrong-doing If there is a problem, is it better to expose or hide?
6. Myth #5: Ethical behavior among employees varies little Define ethics Value of written ethical conduct policy Ethical decision making has changed completely over the last 3 decades
7. Myth #6: Employees do not need to understand internal controls Critical need to understand internal controls and therefore, performance expectations Sustainable training program needed Personal accountability for funds
8. Myth #7: Specific internal controls, such as a cash handling policy, should be updated before the annual audit Policy for the auditor only misses the point Dynamic nature of efficient / effective policies and systems Sometimes a policy needs an overhaul
9. Myth #8: Theft & fraud are unpredictable Good internal controls provide means to address theft & fraud Reporting responsibilities Clarify criminal penalties
10. Myth #9: Internal controls should not be made public Transparency What are limits to transparency if any? Educating the public may lead to better understanding / acceptance of unpopular policies, like NSF fees
11. Myth #10: With adequate policies in place, internal control problems can be EASILY identified & resolved. It’s never easy Establish & maintain climate of shared responsibility Recognize & reward behavior that helps to standardize desired ethical conduct Promote communication about policy & encourage input for improvement
