99-30354. Standards for Internal Control in the Federal Government  

  • [Federal Register Volume 64, Number 224 (Monday, November 22, 1999)]
    [Notices]
    [Page 63815]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-30354]
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    GENERAL ACCOUNTING OFFICE
    
    [GAO/AIMD-00-21.3.1]
    
    
    Standards for Internal Control in the Federal Government
    
    AGENCY: General Accounting Office.
    
    ACTION: Notice of document availability.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The General Accounting Office (GAO) has issued a revised 
    ``Standards for Internal Control in the Federal Government,'' dated 
    November 1999. This publication updates and replaces the 1983 
    ``Standards for Internal Controls in the Federal Government,'' commonly 
    referred to as the ``Green Book.'' The new standards incorporate the 
    concepts of the existing standards and provide greater recognition to 
    the impact of information technology, human capital management, and 
    private sector guidance on internal control. The new standards are 
    intended to assist federal agency program and financial managers 
    achieve the internal control objectives of their organizations. The 
    standards are effective for fiscal year 2000 and apply to reports 
    required by the Federal Managers' Financial Integrity Act (FMFIA) for 
    that year.
    
    DATES: November 1999.
    
    ADDRESSES: Copies of the internal control standards 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 at 202-
    512-6061 or TDD at 202-512-2537; or (4) On GAO's homepage on the 
    Internet at (http://www.gao.gov) under the link to ``Special 
    Publications.''
    
    FOR FURTHER INFORMATION CONTACT: Mr. Robert W. Gramling, Director, 
    Corporate Audits and Standards, Accounting and Information Management 
    Division, U.S. General Accounting Office, Room 5089, 441 G Street, NW., 
    Washington, DC 20548, or by telephone at 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. Over the years, GAO had issued numerous 
    publications to assist agencies in establishing and maintaining 
    effective internal control. In 1982, the Federal Managers' Financial 
    Integrity Act required agencies to evaluate their systems of internal 
    control on a periodic basis using guidance issued by the Office of 
    Management and Budget (OMB Circular A-123, ``Management Accountability 
    and Control,'' revised June 21, 1995) and to report on whether their 
    systems conform to the internal control standards. The Act also amended 
    the Accounting and Auditing Act of 1950 requiring GAO to promulgate 
    internal control standards. In 1983, GAO drew on its previously issued 
    guidance and experts throughout government, the private sector, and the 
    academic communities to develop and issue the required ``Standards for 
    Internal Controls in the Federal Government.''
        Although, those standards remain conceptually sound and are used 
    throughout the federal government, several factors indicated a need to 
    revise and update the standards. The revision and update was performed 
    primarily in response to (1) the effect of rapid advances in 
    information technology management upon internal control, (2) a greater 
    recognition of the role of human capital management as an important 
    factor in internal control, and (3) the need to implement updates of 
    the standards used in the private sector where useful in the federal 
    government environment. The new standards also reflect the increased 
    emphasis upon internal control inherent in important legislation such 
    as the Chief Financial Officers Act of 1990, the Government Performance 
    and Results Act of 1993, and the Federal Financial Management 
    Improvement Act of 1996. These standards provide the overall framework 
    for federal agencies to establish and maintain internal control and to 
    identify and address major performance and management challenges and 
    areas at greatest risk for fraud, waste, abuse, and mismanagement. They 
    will be useful to both program and financial managers in all federal 
    departments and agencies in meeting their missions and objectives and 
    in achieving financial accountability.
        The format of the new standards and the concepts expressed by them 
    are consistent with those contained in the document ``Internal Control-
    Integrated Framework'' published in 1992 by the Committee of Sponsoring 
    Organizations of the Treadway Commission (COSO). The COSO document is 
    widely accepted for use in the private sector. The GAO document defines 
    internal control as an integral component of an organization's 
    management that provides reasonable assurance that the following 
    objectives are being achieved: (a) Effectiveness and efficiency of 
    operations, (b) reliability of financial reporting, and (c) compliance 
    with applicable laws and regulations. There are five broad standards 
    that define the minimum level of quality acceptable for internal 
    control in government and provide a basis against which agency internal 
    control can be evaluated. These five standards cover the areas of (1) 
    Control Environment, (2) Risk Assessment, (3) Control Activities, (4) 
    Information and Communications, and (5) Monitoring.
        We encourage wide distribution and application of the new standards 
    for internal control throughout the federal government.
    Jeffrey C. Steinhoff,
    Acting Assistant Comptroller General for Accounting and Information 
    Management.
    [FR Doc. 99-30354 Filed 11-19-99; 8:45 am]
    BILLING CODE 1610-02-U
    
    
    

Document Information

Published:
11/22/1999
Department:
Government Accountability Office
Entry Type:
Notice
Action:
Notice of document availability.
Document Number:
99-30354
Dates:
November 1999.
Pages:
63815-63815 (1 pages)
Docket Numbers:
GAO/AIMD-00-21.3.1
PDF File:
99-30354.pdf