By: Lee Parks, CPA at Warren Averett
Over the past several years, I’ve worked with colleges and universities facing a lot of change. Enrollment pressure, tighter budgets, new technology and growing expectations from regulators and stakeholders are all putting more strain on already stretched teams. In the middle of that, internal controls can feel like one more thing to manage. But when they are designed well and maintained consistently, they help institutions operate with more clarity, stability and confidence.
That matters now more than ever. Higher education leaders are being asked to do more with less while also managing cyber risk, AI-related concerns, compliance expectations and ongoing financial uncertainty. Strong internal controls are not just about satisfying an audit requirement. They are part of how an institution protects its resources, supports better decisions and stays prepared for the future.
LESSON #1
Internal controls must keep up with change.
Many institutions already have controls in place. The challenge is that those controls may have been built for a very different environment. As operating models shift, technology changes, staffing levels move and new programs come online, control activities need to be revisited too. If they are not, small gaps can grow into bigger issues over time.
LESSON #2
Risk assessment should be part of regular operations.
Risk assessment works best when it is ongoing. Waiting until year-end or audit time to “check a box” often means reacting late. Institutions that are in a stronger position tend to build risk awareness into everyday decision-making. That includes paying attention to changes in systems, processes, access, vendors, funding sources and compliance requirements before those changes create new exposure.
LESSON #3
Good documentation makes good controls stronger.
A common pitfall is not missing controls but unclear documentation on how those controls work. Clear documentation helps support audit readiness, strengthens consistency when roles change and gives leadership a better view of how risk is being managed across the institution.
LESSON #4
Technology can improve efficiency, but it also changes the risk profile.
AI, automation and data tools are creating real opportunities for higher education institutions. They can improve reporting, reduce manual work and support faster decisions. At the same time, they bring added questions around access, oversight, data quality and accountability. A strong control mindset helps institutions take advantage of these tools without creating avoidable risk.
LESSON #5
Controls are only as strong as the culture around them.
Controls do not work in isolation. When leadership sets the right tone and accountability is shared across departments, institutions are much better positioned to catch issues early and respond effectively.
Internal controls help institutions protect resources, reduce disruption and make better decisions, providing a stable foundation for the challenges ahead
