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4 <br />2023-2024 San Mateo County Civil Grand Jury <br />Whether an internal control is followed or not is not a matter of materiality. A failure in what <br />might seem to someone to be a trivial control is the same as a failure in what everyone might <br />consider to be a very important control. There are no big or small controls, just controls. Failure <br />in any contributes to public distrust of all. <br />The Green Book, which sets the standards for an effective internal control system for federal <br />agencies, identifies five components of an internal control system: <br />● Control Environment <br />● Risk Assessment <br />● Control Activities <br />● Information and Communication <br />● Monitoring <br />Each of these components applies to different levels of an organizational structure, such as a <br />Parks and Recreation Department within a City Government. <br />The Green Book summaries 17 Principles of Internal Control for these five components as: <br /> <br />Each entity’s oversight body is specifically responsible for oversight of internal control. Each <br />entity’s management is responsible for the design, implementation and maintenance of internal <br />controls. <br />Each entity’s internal controls are its own – no one would expect all entities to have the same <br />internal controls, because all entities are different. <br />6.C. - Page 8 of 22 <br />87