OMB Circular A 123 Appendix A Internal Control Requirements
This MARADMIN establishes internal control and documentation requirements for financial reporting in accordance with OMB Circular A-123 Appendix A and the Federal Manager's Financial Integrity Act. Local commands will be required to conduct internal control tests over financial reporting systems, document results, and submit them to HQMC Programs and Resources Department (P&R Code RFR), with corrective action plans required when weaknesses are identified.
Issued: March 27, 2006
1. BACKGROUND. REFERENCE (A) REQUIRES THAT ALL FEDERAL GOVERNMENT AGENCIES AND DEPARTMENTS ESTABLISH AN INTERNAL CONTROL PROGRAM AND REPORT ANNUALLY TO CONGRESS THE RESULTS OF INTERNAL CONTROL EVALUATIONS. REFERENCE (B) ESTABLIHSED SPECIFIC INTERNAL CONTROL REQUIREMENTS OVER FINANCIAL REPORTING AND DOCUMENTATION. REFERECE (C) ESTABLISHED THE MANAGER'S INTERNAL CONTROL PROGRAM IN THE DEPARTMENT OF THE NAVY, AND REFERENCE (D) IMPLEMENTED REFERENCE (A) WITHIN THE MARINE CORPS. 2. REQUIREMENTS AND DOCUMENTATION. THE FOLLOWING INTERNAL CONTROL AND DOCUMENTATION REQUIREMENTS FOR FINANCIAL REPORTING ARE ESTABLISHED BY REFERENCE (B). A. HEADQUARTERS MARINE CORPS (HQMC) PROGRAMS AND RESOURCES DEPARTMENT P&R (CODE RFR) WILL REQUEST LOCAL COMMANDS TO DOCUMENT AND SUBMIT TO P&R (CODE RFR) RESULTS OF INTERNAL CONTROL TESTS THAT ENSURE THAT EFFECTIVE INTERNAL CONTROLS HAVE BEEN ESTABLISHED AND WORKING OVER SPECIFIC AREAS OF FINANCIAL REPORTING SYSTEMS. THE REQUIRED FORMAT FOR REPORTING THIS TESTING WILL BE PROVIDED. WHEN INTERNAL CONTROL TESTING IDENTIFIES WEAKNESSES IN INTERNAL CONTROLS OVER AN AREA, THEN THE COMMAND WILL BE REQUIRED TO SUBMIT A CORRECTIVE ACTION PLAN THAT INCLUDES ACTION TAKEN, DATE THE ACTION IS ESTIMATED TO BE COMPLETED, OR DATE COMPLETED AND THE NAME OF THE PERSON RESPONSIBLE FOR ENSURING ACTION IS ACCOMPLISHED. B. INTERNAL CONTROL TESTING RESULTS WILL BE BRIEFED TO THE INTERNAL CONTROL PROGRAM SENIOR ASSESSMENT TEAM (SAT), THE PURPOSE OF THE SAT IS TO DETERMINE THAT THE RESULTS OF THE TEST ARE ACCEPTABLE AND TO DECIDE WHICH INTERNAL CONTROL WEAKNESSES WILL BE REPORTED BY THE MARINE CORPS IN THE INTERNAL CONTROL STATEMENT OF ASSURANCE. THE SAT CONSIST OF FLAG OFFICERS FROM THE FOLLOWING HQMC STAFF AGENCIES: PROGRAM AND RESOURCES DEPARTMENT; INSTALLATION AND LOGISTIC DEPARTMENT; MANPOWER AND RESERVE AFFAIRS DEPARTMENT; COMMAND, CONTROL, COMMUNICATIONS, AND COMPUTERS; MARINE CORPS SYSTEMS COMMAND; MARINE CORPS BUSINESS ENTERPRISE OFFICE, AND MARINE CORPS LOGISTICS COMMAND.