DFA's Internal Control Plan

We will use Lean Six Sigma (LSS) principles to implement an internal control plan guided by a risk and materiality assessment. DFA’s plan, with its tools, templates, and best practices, will guide units in implementing their own plans.

Each department in the Division of Financial Affairs (DFA) will complete internal control plans that will inform DFA’s overall internal control plan. These plans are based on risk and materiality assessments and will apply the principles of LSS methodology to streamline processes. 

The process of developing a DFA internal control plan is the first phase in implementing internal control plans for all campus units using DFA’s framework. The framework will help DFA and campus units to allocate resources in a manner that allows more efficient and accurate financial reporting as well as increased compliance with applicable rules and regulations. 

Actionable Items

The following items are tasks performed during the plan development process:

• Map all existing processes.
• Apply LSS methodology to streamline each process. 
• Calculate materiality and tolerable misstatement thresholds. 
• Prepare a risk assessment. 
• Develop responses to identified material risks. 
• Document a formal corrective actions plan. 
• Develop tools and templates to assist units in implementing unit-specific plans.

Expected Outcomes

• LSS principles are integrated into DFA’s culture. 
• Gains in efficiency and cost effectiveness positively influences DFA’s policies and procedures. 
• Collaboration is improved between DFA’s units as they work together to leverage their knowledge and expertise to develop efficient and effective control plans.  
• Efficiently allocated resources allows for greater focus on accomplishing mission-directed initiatives and improves morale within DFA.  
• Timelier responses and a more proactive approach to customer service results from streamlined processes and increases customer satisfaction.