By Bevin Fitzsimons 
© ChildForum

 

Why internal control? 

• Internal control systems are normal in business and society and will be expected of you by your staff, fellow owners, parents, board members, bankers and financiers.
• They help establish a climate of good control which produces reliable financial records, good management and planning, and lead to successful Ministry of Educaiton and annual external audits.
• They protect your service from the risks and stress of chaos, litigation or closure that can result from major errors or fraud.
• They give you reliable regular management information.

Internal control systems are best practice systems where the people involved in the entity - the staff, managers, owner, trustees, and directors together agree on, establish and operate systems to achieve the results they desire through:

• ensuring best practice in all aspects of their work (not just financial),
• reducing the chances of errors and fraud, and
• quickly picking up actions that might lead to less than best practice ways of working.

And, best practices required by law are also included, e.g. employment law, etc. 

This information or article is exclusively for our early childhood service members holding a full membership