COSO Framework Model
- 1. Control Environment Risk Assessment Control Activities Information and Communication Monitoring Sets the tone of an organization and serves as a foundation for all other components Identifies and analyzes risks to achieving objectives. Determines how risk should be managed. Encompass policies and practices along with process-level procedures that ensure management's directives are carried out. Captures and exchanges relevant information to use as a basis for decision making. Also, effectively communicates roles and responsibilities for maintaining internal controls. The ongoing assessment of internal control quality to assure controls are operating as intended. Governance Oversight Understanding Our Risk Know What We Are Doing Communicating to the Organization How Are We Doing In Place: In Place: In Place: In Place: In Place: Personnel policies & procedures Addison Way Common Control Activities Internal & external information Normal day-to-day procedures Finance Committee Develop annual Town-wide goals Monthly, quarterly, annual reviews Review of internal controls & explanation to all departments Independent external audit Job Descriptions & Market Analysis Mission Statement Procurement Manual Town-wide communication from City Manager about internal controls Data Analysis and Response to Findings Management's proactive approach to new & amended audit & accounting standards Council's Vision Segregation of duties (banking, payroll, staffing, AP) Pre-audit meeting & external auditors Planned Actions: Organizational Chart Property / Liability Insurance Cash/asset management & procedures Financial Reporting Internal Audit Procedures (Q1-2016) GFOA Award Participation Fully staffed / professional finance department Transparency Award Requirements Participative Budgeting Business Process Review (Q1-2016) Performance Evaluations Opengov Management / Council Retreats Utilizes Technology Quarterly Employee Meetings Planned Actions: Planned Actions: System Software Permissions Conduct Annual Financial Best Practices Workshops with Council and Management (Q2-2016) Cash Handling Training (Q2-2015) Travel policies & procedures Planned Actions: Municipal Court Financial Management Handbook for Texas Cities (2017) Evaluation of potential changes in risk associated with ERP (Q2-2015) Financial Policies Implementation of ERP (Q2-2015) Annual Director/Manager Responsibility Acknowledgement (Q2-2015) Remote capture deposit (Q1-2015) -AP/AR/cash receipting/Utility Billing Develop Fraud Policy (2016) -Investment Policy Ethics Training (Q3-2015) -Debt Policy GFOA Best Practices (Q3-2015) -Budget Policy -Financial Reporting -Revenue -Operating Expenditure -Fund Balance -Fund Transfers -Capital Projects Procurement training Authorization of Transactions (re: JE's, non cash collections, AP) Planned Actions: RFP for investment services (Q4-2015) Cash management policy (Q1-2015) Capital asset reporting (2015) Develop cash audit process (Q1-2015) RFP for banking services (Q1-2015) Purchasing/procurement enhancement (Q4- 2014) Payroll Processing (Q4-2014) * Dates listed throughout represent the inception or anticipated start of the project. Town of Addison COSO Framework Model December 4, 2014 - Working Document Committee of Sponsoring Organizations (COSO) Framework Addison Strategy and Timeframe