In 1992, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) published a report titled Internal Control—Integrated Framework. This document provides principles-based guidance for designing and implementing effective internal control. More information on the COSO organization and the internal control framework is available at www.coso.org.

COSO developed the framework in response to management’s needs for effective ways to better control operations and to help ensure that organizational objectives related to operations, reporting, and compliance are achieved. The framework provides a standard way of describing and discussing internal control and has become the most widely used internal control framework in the United States, including many government organizations. It has also been adapted or adopted by numerous countries and businesses around the world.

The State of Minnesota has adopted the COSO framework as its internal control standard. Pursuant to Minn. Stat. Section 16A. 57Sub. 8, the head of each executive branch agency is responsible for designing, implementing, and maintaining an effective internal control system within the agency. According to 0102-01 Internal Control Policy, the internal control system established must be consistent with the COSO Internal Control – Integrated Framework.