Internal Financial Control Clause Samples
The Internal Financial Control clause establishes the requirement for a company or organization to implement and maintain systems and procedures that ensure the accuracy and reliability of its financial reporting. Typically, this clause mandates regular monitoring, documentation, and review of financial transactions and controls, often including audits or internal checks to detect errors or fraud. Its core practical function is to safeguard assets, promote transparency, and reduce the risk of financial misstatements or irregularities within the organization.
Internal Financial Control. 1. Contractor shall be responsible for implementing procedures and internal financial controls governing the management and utilization of Workforce Innovation Opportunity Act funds provided hereunder. The procedures and financial controls must be established pursuant to generally accepted accounting procedures.
2. Contractor will track costs in sufficient detail to determine compliance with the Workforce Innovation and Opportunity Act and Cost Principles under 2 CFR 200 and to ensure that the funds have not been unlawfully spent. All expenditures must be allowable, allocable, necessary and reasonable for proper and efficient operation of the program under these guidelines and in accordance with Southwest Florida Workforce Development Board, Inc. policies and procedures. Contractor will provide their Cost Allocation Plan for the allocation of expenses to the SFWDB for approval.
3. Contractor will maintain separate accounting records for funds expended under this contract. The commingling of funds with other funding sources is prohibited. The Board is considered one (1) funding source.
4. Contractor shall implement administrative controls to identify participant training and/or services costs that are supported by other federal, state, or local programs to ensure that costs are not being duplicated.
5. Contractor shall inform the Board of its receipt or its subcontractors’ receipt of any Federal, State or local grant that may materially affect the quality or cost of the services provided under this contract. In which case, the Board shall have the right to renegotiate the price or deliverable performance of this contract.
6. If an official audit or monitoring report identifies unacceptable accounting practices and/or records management, the Board reserves the right to withhold any or all reimbursement from the Contractor until such time as standards are met.
Internal Financial Control. 1. Contractor shall be responsible for implementing procedures and internal financial controls governing the management and utilization of the funds provided hereunder. Contractor shall maintain its books, records, and documents (including electronic storage media) in accordance with generally accepted accounting procedures and practices to ensure all transactions properly account for all revenues and expenditures of funds provided by the Coalition under this contract, and that funds, property, and other assets are safeguarded against loss from unauthorized use or disposition which sufficiently and properly reflect all revenues and expenditures of funds provided by the Coalition under this contract.
2. Contractor shall track costs in sufficient detail to determine compliance with applicable laws, regulations and contract provisions, to ensure that the funds have been lawfully spent. All expenditures must be in accordance with the applicable OMB Cost Principles.
3. Contractor shall maintain separate accounting records for the separate School Readiness and Voluntary Prekindergarten funds received and expended under this contract. The Contractor shall ensure that accounting records reflect the separation of all programs/activities the Contractor administers or for which it receives funding. Records shall adequately identify with Other Cost Accumulators (OCA) the source and funding application for each program/activity. The Contractor shall maintain a clear audit trail showing detail of expenditures related to the applicable program/activity. The Contractor shall maintain written or electronic documentation of transaction files, policies, processes, controls and other detailed supporting records that the Contractor submits per Coalition instructions and makes available for review upon request.
Internal Financial Control. The Company believes that internal control is a necessary concomitant of the principle of prudent business governance that freedom of management should be exercised within a framework of appropriate checks and balances. The Company remains committed to ensuring an effective internal control environment that inter alia provides assurance on orderly and efficient conduct of operations, security of assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records and the timely preparation of reliable financial information. The Company's independent and Internal Audit processes, both at the Business and Corporate levels, provide assurance on the adequacy and effectiveness of internal controls, compliance with operating systems, internal policies and regulatory requirements. The Company has in place adequate internal financial controls with reference to the Financial Statements. Such controls have been tested during the year and no reportable material weakness in the design or operation was observed. Nonetheless the Company recognizes that any internal financial control framework, no matter how well designed, has inherent limitations and accordingly, regular audit and review processes ensure that such systems are reinforced on an ongoing basis.
Internal Financial Control. The Recipient shall ensure that the Internal Financial Control Unit, Department of Planning and Finance of MOH has been empowered to conduct periodic inspection of HSDP accounts in the Participating Provinces.