Introduction About Financial Control Department
Financial control is of great importance to the administrative process and is considered one of the most important administrative pillars. Control processes should be organized in order to be an effective tool in developing and directing the administrative activity in all of its guises. It is known that governmental bodies have established such control in order to provide citizens with excellent services.
The role of control bodies is to ensure providing such services expediently, with lowest possible effort and cost; and as legally required.
The Financial Control Department was established at the inception of the University in 1419 AH (1998 AD) due to its importance stemming from its role as a key pillar of the efficiency of executive management performance.
Financial Control Definition
Financial control means a set of processes put in place to follow up the performance of performing plans and policies that were developed to identify deviances that will be treated on time in addition to protecting public property from embezzlement, loss or misuse.
Financial Control Importance
Financial control is considered one of the key elements of the administrative process which includes: planning, organizing, leading, coordinating and various control methods.
The importance of financial control lies in providing assistance to the country within the governmental framework Financial controllers are entrusted with examining how work is conducted inside governmental units, making sure that supplies are utilized according to the applicable laws, implementing regulations and issuing instructions, ensuring that units have achieved their objectives effectively and sufficiently in order to protect public property and ensuring the validity of work outcomes, maintaining sanctioned financial positions, improving performance rates, uncovering violations and deviances & examining their causes, backing valid results and suggesting curative measures with regard to deviances in order to avoid such in the future at all service and economic units.
Financial Control Objectives:
Financial control seeks to achieve two objectives:
- To verify that expenditure is executed in accordance with regulatory plans and regulations applicable in the state.
- To verify that supplies are properly obtained and used correctly.
These objectives are divided into:
These objectives are embodied in:
- Providing a neutral technical opinion as to the validity of financial positions and output results of the units under its control. Providing such opinion must be based on evidence and conclusive presumptions about the validity of financial position and validity of works' results at the end of the financial period
- Encouraging compliance with administrative policies and decisions and ensuring such compliance
- Ensuring the accuracy of accounting data, the safety and validity of records and numbers stated in the records and archives and to what extent they are reliable in the process of preparing the final data and reports and to take consequent decisions
- Detecting errors and fraud and trying to reduce them through evaluating the efficiency of financial control systems of the units, promoting such systems and elevating their efficiency in carrying out elements of internal control
- Ensuring the implementation new systems and methods in planning, organizing and performance follow-up
- Ensuring systems' adequacy, specifying the powers and responsibilities of staff working in the units subject to control and considering the hierarchical order to ensure the correct handling of information and creating a cooperative atmosphere among individuals and employee.
- Discovering creative practices and encouraging initiatives and rewarding those who engage in such practices by way of incentives.
These objectives are embodied in:
- Protecting university property and assets to ensure the protection of public property and defending the rights of parties related to the units under its control
- Increasing proficiency so as to improve performance and increase productivity and suggesting the best methods to achieve the objectives contained in the established economic plans and policies
- Providing legislative authorities in the country with true and validated information and reports in order to ensure implementing what is agreed upon concerning the budget; using approval in order to collect revenue in accordance with the applicable systems and regulations.
Types of Financial Control
Types of financial control differ according to the position of the body performing such control; they may be summed up into two categories, namely: External Financial Control and Internal Financial Control.
A- External Financial Control:
External financial control is deemed to be a tool with which we can ensure that governmental departments and establishments perform the duties they are entrusted with in accordance with applicable plans and programs and with the resources available to us.
External financial control can be defined as follows: an evaluative activity that is independent on the Executive Authority and is aimed at checking the validity and legality of financial and accounting transactions and examines the efficiency and efficacy of the performance of governmental bodies with regards to achieving their goals and objectives.
B-Internal Financial Control:
Governmental bodies endeavor to carry out their duties efficiently and adequately in order to allow them to utilize available resources economically and efficiently. The executive authority makes every possible effort to prevent its employees from committing errors or misusing sources and to protect them from loss and embezzlement through issuing instructions determining the procedures required to maintain its assets on one hand, and accuracy of its financial and accounting data on the other hand. Pursuant to such binding instructions applicable to all employees, assets can be protected and violations & deviances can be discovered early in order to take appropriate action.
Internal financial control is defined as follows: An independent evaluative activity within the administrative unit to check accounting aspects and other transactions for the purpose of protecting assets, examining accuracy of financial statements and to what extent they are dependable and reliable, increasing productive efficiency and encouraging employees to comply with applicable administrative policies. Internal financial control is intended to implement control preceding approval (preventive control) as well as performance control (follow-up) which considerably facilitates the efforts of the external financial control body when reviewing the performance of governmental bodies at the end of the financial period. This is called subsequent control.