Strong internal controls serve as the framework of effective governance, operational excellence, and organizational resilience. They help safeguard assets, promote valid and accurate reporting, support compliance with applicable laws and regulations, and reduce the risk of fraud, waste and abuse of resources.
2 CFR § 200.1 defines internal controls as processes designed and implemented by recipients and subrecipients to provide reasonable assurance regarding the achievement of objectives in the following categories:
- Effectiveness and efficiency of operations;
- Reliability of reporting for internal and external use; and
- Compliance with applicable laws and regulations.
The State Vocational Rehabilitation Agency (SVRA) must adhere to 2 CFR § 200.303 by:
- Establishing, documenting, and maintaining effective internal control over the Federal award that provides reasonable assurance that the Federal award is managed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (*These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO));
- Complying with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal award;
- Evaluating and monitoring the SVRA’s compliance with statutes, regulations, and the terms and conditions of Federal awards;
- Taking prompt action when instances of noncompliance are identified; and
- Taking reasonable cybersecurity and other measures to safeguard information including protected personally identifiable information (PII) and other types of information. This also includes information the Federal agency or pass-through entity designates as sensitive or other information the recipient or subrecipient considers sensitive and is consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality.
Maintaining effective internal controls is a shared responsibility. By understanding and consistently applying sound control practices, every member of the SVRA plays an important role in protecting program resources and supporting the achievement of strategic objectives.
Explore this page to learn more about internal control frameworks, including key principles, responsibilities, policies, and resources that support a strong control environment. Whether you are seeking guidance on risk management, control activities, or your role in maintaining effective internal controls, these resources are designed to help you understand expectations and contribute to the SVRA’s commitment to accountability, transparency, and continuous improvement.