Statement of Assurance
The U.S. General Services Administration management is responsible for establishing and maintaining effective internal control and financial management systems that meet the objectives of the Federal Managers’ Financial Integrity Act (FMFIA).
GSA conducted its assessment of internal control over the effectiveness and efficiency of operations and compliance with applicable laws and regulations in accordance with OMB Circular A-123, Management’s Responsibility for Internal Control. Based on the results of this evaluation, GSA provides reasonable assurance that management internal controls over the effectiveness and efficiency over operations and compliance with applicable laws and regulations were operating effectively in its design and operation and no material weaknesses were identified as of September 30, 2013. Although not identified as a material weakness, GSA management recognizes that challenges exist in GSA’s entity-level controls environment that need to be strengthened to promote standardization of business processes, consistent application of business rules, and effective communications across the agency.
In addition, GSA conducted its limited-scope assessment of the effectiveness of internal control over financial reporting, which includes safeguarding of assets and compliance with applicable laws and regulations, in accordance with the requirements of Appendix A of OMB Circular A-123. Based on the results of this assessment, GSA provides a reasonable assurance that internal controls over financial reporting were operating effectively as of September 30, 2013, with the exception of the financial reporting process, where a material weakness has been identified. GSA implemented procedures to correct key elements that caused the material error, which were corrected prior to the final presentation of financial statements. Remaining issues associated with internal controls over financial reporting will continue to be addressed in fiscal year 2014. Refer to the Other Information section for details.
The Federal Financial Management Improvement Act of 1996 (FFMIA) requires agencies to implement and maintain financial management systems that are substantially in compliance with federal financial management systems requirements, federal accounting standards promulgated by the Federal Accounting Standards Advisory Board (FASAB), and the U.S. Standard General Ledger (USSGL) at the transaction level. In addition, OMB Circular A-127, Financial Management Systems, requires agencies to implement and maintain financial management systems that are substantially in compliance with federal financial management systems requirements, federal accounting standards, and the USSGL. GSA assessed its degree of substantial compliance by utilizing the FFMIA Risk Model. GSA financial management systems were found to substantially comply with FFMIA as of September 30, 2013.
December 9, 2013