The Office of Management and Budget later this month will issue a list of best practices to help agencies implement internal controls for financial reporting information. OMB also will start providing feedback to agencies on the plans they submitted in August to put internal controls in place as part of revised Circular A-123.
Financial reporting is not just for chief financial officers anymore. Management needs to get its arms around internal controls, said Linda Combs, OMB controller. Circular A-123 is similar to management compliance requirements for private corporations under the Sarbanes-Oxley Act, passed in the wake of corporate fraud at Enron and WorldCom.