Indicate why these are Internal Control Strengths.

Example:

INTERNAL CONTROL STRENGTH: Central Chicago has an annual capital budgeting process where all capital expenditures are pre-approved prior to the beginning of the fiscal year.

EXPLANATION: All the departments heads are actively participated in the annual budget process. This ensures the collect of proper PPE information is passed along to the Capital Committee and all dept. heads understand their PPE budget allocations.

Internal control Strengths are listed below, EXPLAIN WHY THESE ARE CONSIDERED INTERNAL STRENGTH CONTROLS.

1. The budgeting process begins in the first week of February and begins with a meeting of finance with departmental leaders. At the meeting, Arlene (Finance Dept. personnel) communicates to the leaders the total funds that have been allotted to fixed assets.

2. The Senior VP of the departments will fill out a budget form itemizing planned expenditures for the upcoming fiscal year. This form is submitted to Arlene (Finance Dept.) via email for final approval and inclusion in the annual budget by the third week in February.

3. Items costing $100,000 or greater require an ROI analysis. Although individual items may not meet the ROI threshold, joint expenditures must meet established budgetary targets.

4. . All capital expenditure items require that an approved purchase requisition along with a PO, signed by the requesting department's Senior VP, be submitted to the finance department. VP Finance signs all requisitions before they are processed.

5. Capital expenditure related to computer-related hardware and software must have approval from the IT Dept., and purchases related to equipment with electrical applications and building renovations require approval from the Plant Operation Department.