Effective internal controls empower management to reach the city's goals and objectives by minimizing risks. There are three types of internal controls: preventive, detective, and corrective.
Preventive Controls
- Adequate documents and records
- Physical control over assets
- Proper Authorizations
- Proper record keeping procedures
- Segregation of duties
Detective Controls
Detective controls include any activity that documents or reveals when an adverse event has occurred, such as:
- Independent checks of performance
- Monthly reviews of reports
- Reconciliation
Corrective Controls
Corrective controls include any activity that resolves or remedies an adverse event.