1. OMB A-123 Update CRT April 20, 2015 Mike Wetklow
Office of Federal Financial Management
Office of Management and Budget

2. Internal Controls
1981/1982/1983 –
OMB Issued Circular No. A-123, Internal Control Systems and Internal Control Guidelines
Federal Managers Financial Integrity Act
1986 – OMB Required Management Control Plans to guide efforts
1995 – OMB updated A-123, Management Accountability and Control to reflect GPRA, CFO Act, IG Act
2004 – OMB updated A-123, Management’s Responsibility for Internal Control and added Appendix A, Internal Control Over Financial Reporting
OMB’s vision for 2015 Update – transform and evolve existing internal control compliance frameworks so that it creates a more value added, integrated, risk based, and less burdensome set of requirements for agencies. The revised guidance will:
Clarify technical terminology to help program managers better understand and implement internal controls
Introduce ERM concepts as defined by the COSO framework
Replace “check the box” compliance approach with risk management-based approaches to support agency missions
Streamline assurance statement reporting
Build on successful implementation of internal controls over financial reporting
Be put out for comment in Spring 2015 with an implementation date of 2016

3. ERM and Internal Controls
A-123 Future State
Governance
ERM
Internal Controls
A-123 Current State
Internal Controls
Source: COSO

4. ERM and Internal Controls
Source: COSO

5. Streamlining Assurance Statements

6. Additional Considerations
Corrective Actions
Service Organizations
Internal Controls in Disaster Situations
Fraud
Internal Controls over Financial Assistance (i.e., Grants)
Appendix A