Interim Final Appendix D of OMB Circular No. A-123, “Management's Responsibility for Internal Control,” and Suspension of Application of OMB Circular No. A-127, “Financial Management Systems”
OMB Circular No. A-123, ``Management's Responsibility for Internal Control,'' defines management's responsibility for internal control in Federal agencies. OMB Circular No. A-127,''Financial Management Systems,'' previously prescribed policies and standards for executive departments and agencies to follow in developing, operating, evaluating, and reporting on financial management systems. OMB is issuing this interim final version of a new appendix, Appendix D, to Circular A-123, to provide a framework for determining compliance with the Federal Financial Management Improvement Act (FFMIA) of 1996, bringing financial systems policy into greater alignment with financial management policy in Circular A-123 and with general IT guidance contained in OMB Circular No. A-130, ``Management of Federal Information Resources.'' The new appendix to Circular A-123 supersedes, and makes it no longer necessary to maintain, Circular A-127. Accordingly, OMB is suspending application of Circular A-127.