Omb123

In: Computers and Technology

Submitted By hofferd
Words 1238
Pages 5
Information Paper

OMB Circular A-123
Management’s Responsibility for Internal Controls

1. Background

A. Federal Managers’ Financial Integrity Act (FMFIA) of 1982

1) A statutory requirement

2) Amended the Accounting and Auditing Act of 1950

3) Requires evaluations and reports on the adequacy of the systems of internal accounting and administrative control

B. Office of Management and Budget (OMB) Circular No. A-123

1) Provided guidance to implement the FMFIA of 1982.
Guidance has evolved:

2) Circular No. A-123, Internal Control Systems, revised, dated August 4, 1986, replaced;

3) Circular No. A-123, Management Accountability and Control, revised, dated June 21, 1995, effective through 09/30/05; and

4) Circular No. A-123, Management’s Responsibility for Internal Controls, revised, dated December 21, 2004, effective on 10/01/05

2. Federal Managers’ Financial Integrity Act (FMFIA) of 1982

A. Internal accounting and administrative controls of each executive agency shall be established in accordance with standards prescribed by the Comptroller General, and shall provide reasonable assurances that:

1) Obligations and costs are in compliance with applicable law;

2) Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and

3) Revenues and expenditures applicable to agency operations are properly recorded and accounted for to permit the preparation of accounts and reliable financial and statistical reports and to maintain accountability over the assets.
B. Annually, an agency head must evaluate and report on the control and financial systems that protect the integrity of federal programs.

3. Office of Management and Budget (OMB) Circular No. A-123

A. Defines management’s responsibility for internal controls for federal agencies and government corporations.

B.…...

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