Common use of Internal Control System Clause in Contracts

Internal Control System. Why is this important? 3.2.1 Internal control refers to the systems of control devised by management to help ensure that objectives are achieved in a manner that promotes economical, efficient and effective use of resources and that ensures that assets and interests are safeguarded. 3.2.2 The Office of the Police and Crime Commissioner and Constabulary are complex organisations that require an internal control framework to manage and monitor progress towards strategic objectives. There are statutory obligations to be met that require a system of internal control to identify, meet and monitor compliance with these obligations. 3.2.3 There are a wide range of financial, administrative and commercial risks, both from internal and external factors, which threaten the achievement of its objectives. A system of internal control is necessary to manage these risks. The system of internal control is established in order to provide achievement of:  efficient and effective operations  reliable financial information and reporting  compliance with laws and regulations  risk management.