§ 35-20-4 - Internal accounting controls.
SECTION 35-20-4
§ 35-20-4 Internal accounting controls.– (a) Internal accounting and administrative controls are the methods throughwhich reasonable assurances can be given that measures adopted by publiccorporations to safeguard assets, check the accuracy and reliability ofaccounting data, promote operational efficiency, and encourage adherence toprescribed managerial policies are being followed. The elements of asatisfactory system of internal accounting and administrative control, shallinclude, but are not limited to, the following:
(1) A plan of organization that provides segregation ofduties appropriate for proper safeguarding of public corporation assets.
(2) A plan that limits access to public corporation assets toauthorized personnel who require these assets in the performance of theirassigned duties.
(3) A system of authorization and recordkeeping proceduresadequate to provide effective accounting control over assets, liabilities,revenues, and expenditures.
(4) An established system of practices to be followed inperformance of duties and functions in each of the public corporations.
(5) Personnel of a quality commensurate with theirresponsibilities.
(6) An effective system of internal review.
(b) Public corporations shall follow these standards ofinternal accounting and administrative control in carrying out the requirementsof this chapter.