Term
| Learning Objectives of Module 1: Resource Management Environment - Competency Area 4: Management's Responsibility for Internal Control |
|
Definition
1) Understand the concept of Internal Control
2) Describe the importance and requirements of Federal Managers' Financial Integrity Act and OMB Circular A-123
3) Summarize internal control standards, techniques, and documentation required in the DoD's Internal Control Program |
|
|
Term
|
Definition
| Management's Responsibility for Internal Control |
|
|
Term
|
Definition
| Internal Control Over Financial Reporting |
|
|
Term
| The Green Book (GAO/AIMD-00-21.3.1 |
|
Definition
| GAO Standards for Internal Control in the Federal Government |
|
|
Term
|
Definition
| Managers' Internal Control program (MICP) Procedures |
|
|
Term
|
Definition
| Financial Reporting Requirements |
|
|
Term
|
Definition
| Is a system of guidance, instructions, regulations, procedures, rules, or other organization instructions intended to determine the methods to be employed to carry out mission or operational actions or objectives, and ensure that programs achieve intended results. (First line of defense) |
|
|
Term
| Internal Control Illustrated Managements Role |
|
Definition
| Management should assess risks associated with achieving organization objectives and then develop control activities to address those risks. |
|
|
Term
| Internal Control Guidance Consists of: |
|
Definition
1) The Federal Manager's Financial Integrity Act (FMFIA) of 1982
2) OMB Circular A - 123, Management's Responsibility for Internal Control
3) Standards for Internal Control in the Federal Government
4) DoD Managers' Internal Control Program |
|
|
Term
| The Federal Manager's Financial Integrity Act (FMFIA) of 1982 |
|
Definition
| As codified in 31 U.S.C 3512, establishes the legal framework for internal control in the Federal Government. The law requires ongoing evaluations and reports of the adequacy of the systems of internal accounting and administrative control of each executive agency. |
|
|
Term
| OMB Circular A-123, Management's Responsibility for Internal Control |
|
Definition
| Implements the FMFIA within the Executive Branch. The circular provides guidance to Federal managers on improving the accountability and effectiveness of Federal programs and operations by establishing, assessing, correcting, and reporting on internal control. |
|
|
Term
| Standards for Internal Control in the Federal Government |
|
Definition
| As required by the FMFIA the GAO established the Green Book to provide the overall framework for establishing and maintaining internal control and for identifying and addressing major performance and management challenges and areas at greatest risk of fraud, waste, abuse and mismanagement. |
|
|
Term
| DoD Managers' Internal Control Program (DoD 5010.40) |
|
Definition
| Established by the DoD to implement the FMFIA within the DoD. The instruction provides guidance for DoD Management to apply in reviewing, assessing, and reporting on the effectiveness of internal controls within their respective organizations. |
|
|
Term
| The FMFIA amended which act? |
|
Definition
| Accounting and Auditing Act of 1950 |
|
|
