[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Notices]
[Pages 67373-67374]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33623]
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GENERAL ACCOUNTING OFFICE
[GAO/AIMD-98-21.3.1]
Standards for Internal Control in the Federal Government
AGENCY: General Accounting Office.
ACTION: Notice of document availability.
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SUMMARY: The General Accounting Office (GAO) is seeking public comment
on the proposed ``Standards for Internal Controls in the Federal
Government dated December 1997.'' The proposed standards are being
issued to update the 1983 ``Standards for Internal Controls in the
Federal Government.'' The proposed standards incorporate the existing
standards and the components of internal control covered in Internal
Control--Integrated Framework, Committee of Sponsoring Organizations of
the Treadway Commission (COSO), September 1992. The proposed standards
are intended to assist program and financial managers achieve the
internal control objectives of their organizations. This notice
indicates that the proposed standards are available from GAO for review
and comment.
DATES: Comments must be received by March 11, 1998.
ADDRESSES: Copies of the internal control standards draft are available
by (1) pick-up at Document Distribution, U.S. General Accounting
Office, Room 1100, 700 4th Street, NW. (corner of 4th and G Streets,
NW.), Washington, DC; (2) mail from U.S. General Accounting Office,
P.O. Box 37050, Washington, DC 20013; (3) phone at 202-512-6000 or FAX
202-512-6061 or TDD 202-512-2537; or (4) on GAO's home page (http://
www.gao.gov) on the Internet. Comments should be addressed to the
Robert W. Gramling, Director, Corporate Audits and Standards,
Accounting and Information Management Division, U.S. General Accounting
Office, 441 G Street NW., Room 5089, Washington, DC 20548.
FOR FURTHER INFORMATION CONTACT: Robert W. Gramling, 202-512-9406.
SUPPLEMENTARY INFORMATION: Beginning with the Accounting and Auditing
Act of 1950, agency heads have been required to establish and maintain
effective internal control. Since then, other laws have required
renewed focus on internal control. The Federal Managers' Financial
Integrity Act (FMFIA) of 1982, for example, requires agency heads
periodically to evaluate their systems of internal control, using the
guidance issued by the Office of Management and Budget, and to prepare
a report on whether their systems conform to the standards issued by
the GAO. Most recently, the Federal Financial Management Improvement
Act (FFMIA) of 1996, in focusing on financial management systems,
identified internal control as an integral part of those systems. The
OMB Circular A-123, ``Management Accountability and Control,'' June 21,
1995, provides the requirements for assessing controls. Over the years,
GAO has issued numerous publications to assist agencies in establishing
and maintaining effective internal control systems. In 1983, GAO drew
on its
[[Page 67374]]
previously issued guidance and experts throughout government, private
sector, and academic communities to develop and issue ``Standards for
Internal Controls in the Federal Government'' to facilitate
implementation of FMFIA. Although those standards remain conceptually
sound and are used throughout the federal government, this update
enhances the standards by recognizing recent internal control
evaluation guidance developed by the private sector with assistance
from GAO and others, as well as to giving greater recognition to the
increasing use of information technology.
The internal control standards contained in the proposed standards
follow the COSO guidance closely and refer to portions of OMB Circular
A-123 that provide guidance for evaluating internal control. However,
two of the standards concerning management reporting on internal
control and resolution of audit findings are standards not addressed by
COSO but reflect the public's demand for a high level of accountability
for government stewardship of resources. These two standards are
currently required by law and by the existing internal control
standards. Appendix II cross-references the existing standards with
those proposed in the document.
Comments received will be reviewed and the proposed standards will
be revised as necessary. Publication of the final standards will be
announced in the Federal Register.
Gene L. Dodaro,
Assistant Comptroller General for Accounting and Information
Management.
[FR Doc. 97-33623 Filed 12-23-97; 8:45 am]
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