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 controls 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 its management internal controls over the effectiveness and efficiency over operations and compliance with applicable laws and regulations were operating effectively in their design and operation as of September 30, 2014. Although not identified as a material weakness, GSA management recognizes that challenges exist in GSA’s entity level control environment. The control environment needs 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 controls over financial reporting, which includes safeguarding of assets and compliance with applicable laws and regulations, in accordance with the requirements of OMB Circular A-123 Appendix A. Based on the results of this assessment, GSA provides reasonable assurance that internal controls over financial reporting were operating effectively as of September 30, 2014, with the exception of the financial reporting process where a material weakness has been identified relating to environmental liabilities and practices supporting lease classification. GSA revised the environmental liability estimate prior to the final presentation of the financial statements. Remaining issues associated with internal controls over practices supporting the environmental liability estimate and lease classification will continue to be addressed in fiscal year 2015.
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-123 Appendix D 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, 2014.
November 12, 2014