GSA Management Assurances
Statement of Assurance
GSA management is responsible for managing risks and maintaining effective internal controls to meet the objectives of Sections 2 and 4 of the Federal Managers’ Financial Integrity Act. GSA conducted its assessment of risk and internal controls in accordance with the Office of Management and Budget (OMB) Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. Based on the results of the assessment, GSA management can provide reasonable assurance that internal controls over operations, reporting, and compliance were operating effectively as of September 30, 2019.
In FY 2018 the GSA Office of Inspector General (OIG) identified internal controls as a management challenge and subsequently cited performance audits as a specific area of concern. To address this challenge, GSA (1) clarified and enforced accountability over audit resolution by establishing an executive team to lead the resolution of this management challenge; (2) improved coordination of audit and internal control activities across the enterprise through chartering an audit and internal control working group, which meets regularly to address these issues, and (3) strengthened controls over audit resolution through enhanced reporting and internal control monitoring.
To address the control concerns and inefficiencies associated with the lack of a single, integrated contract writing system, the Federal Acquisition Service (FAS) is poised to implement a new contract acquisition lifecycle management system (CALM). CALM will be a single, modern, efficient acquisition system that will support end-to-end acquisition, enhance internal controls, and standardize processes for the acquisition workforce. The acquisition process is in progress and CALM is expected to begin rolling out in the third quarter of FY 2020.
Recent OIG and GAO audits identified control weaknesses in the Public Buildings Service (PBS) Health and Safety, Environmental, and Delegated Leasing programs. To address these, PBS is developing guidance and training to ensure regions are using a consistent, national framework for identifying, reporting, and addressing environmental risks across the PBS building inventory. In addition, PBS is developing standard operating procedures to address data integrity issues related to lease delegations.
In FY 2019, OMB confirmed an FY 2017 Antideficiency Act (ADA) violation related to the Acquisition Services Fund. GSA implemented a corrective action plan to enhance forecasting capabilities. In addition, OMB amended the FY 2019 ASF apportionment to allow for automatic increases to the apportionment in the event of unanticipated customer orders placed above the apportioned levels thus eliminating the cause of the ADA.
GSA has assessed that it is in compliance with Federal financial management standards, as required by the Federal Financial Management Improvement Act of 1996 and OMB Circular A-123 Appendix D. GSA is confident that all systems substantially comply with the Federal accounting standards promulgated by the Federal Accounting Standards Advisory Board, and with the U.S. Standard General Ledger at the transaction level as of September 30, 2019.
Emily W. Murphy