The updated OMB Circular No. A-123 - What You Need to Know

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The revised Office of Management and Budget (OMB) Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, M-16-17, released on July 15, 2016, defines management’s responsibility for risk management and internal control. OMB Circular No. A-123 and the statute it implements, the Federal Managers’ Financial Integrity Act (FMFIA) of 1982, are at the center of Federal requirements to improve accountability in Federal programs and operations. A re-examination of the existing internal control requirements, originally issued in December 2004, for Federal agencies was initiated in light of the new Standards for Internal Control in the Federal Government (better known as the Green Book) issued by the U.S. Government Accountability Office (GAO) on September 10, 2014. The revised OMB Circular No. A-123 enhances the existing internal control framework to provide for stronger risk management, an enhanced governance model and improve operational efficiency. Updates include:
  • Updated title of the Circular
  • Added emphasis on building an enterprise Risk Management (ERM) framework
  • Reinforced correction action planning
  • Cooperative audit resolution
  • Streamlined internal control reporting
  • Guidance for special topics

Read more about the Updated OMB Circular No. A-123