Internal Control: Meeting Federal Requirements for Accountability

Federal managers are required to continuously assess and report on the status of internal control, an integral part of financial management, to comply with laws and regulations. Build on your knowledge of internal control by understanding how programs and processes should be designed and implemented to accomplish the mission throughout your organization. You will examine the Federal Managers’ Financial Integrity Act, GAO Standards of Internal Control, and OMB Circular A-123 to develop a strong knowledge base in this complex financial area.

Learning Objectives

• Describe the need for agency internal control
• Use the Government Accountability Office’s (GAO) Internal Control Standards to create an effective internal control system
• List the governing authorities that apply to internal control and how they apply to the overall internal control process
• Describe risk in the federal government
• Use Enterprise Risk Management (ERM) guidelines to identify the impact of risk on strategic goals
• Explain how internal controls are tested in an internal control review (ICR)
• Explain requirements and steps for developing and tracking a corrective action plan (CAP)
• Identify and report internal control deficiencies
• Prepare an outline that includes a key control area or risk, control objective statement, flowchart, and test control plan

Course Topics

Understanding Internal Control

• What Is Internal Control?
• Why Internal Controls Are Important
• The Fundamental Components of Internal Controls
• Internal Controls and Management
• Module Capstone: Explaining the Need for Internal Controls

GAO's Internal Control Standards

• The GAO Standards
• Applying the GAO Standards
• Using GAO Guidance

Legal Requirements and the Internal Control Process

• Internal Control Mandates
• The Internal Control Requirements of the Integrity Act
• Guidance for Federal Managers
• How Internal Control Is Assessed

Risk in the Federal Government

• Understanding Risk
• The Three Major Types of Risk
• The Relationship between Risk and Internal Control
• The Risk Management Process

Enterprise Risk Management

• Understanding Enterprise Risk Management (ERM)
• Main Elements of an Enterprise Risk Management Program

The Internal Control Review (ICR)

• Understanding Internal Control Reviews
• The Major Steps in an ICR

Corrective Action Plans

• Take Corrective Actions
• Track Internal Control and Corrective Action Plans

Internal Control Reporting: Legal, Regulatory, and Agency Requirements

• Prepare Reports on Results

Course Capstone: Addressing Your Workplace Control Area or Risk

Capstone Exercise: Addressing Your Workplace Control Area or Risk