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Managers’ Internal Control Program

ABUS 046

DAU GLOSSARY DEFINITION

Internal review and internal checks established by the Commanding Officer (CO) to safeguard property and funds; to check accuracy, reliability, and timeliness of accounting data to promote operational efficiency; and to ensure adherence to prescribed management policies and procedures.

Alternate Definition

The organization, policies, and procedures that help program and financial managers to achieve results and safeguard the integrity of their programs by reducing the risk of adverse activities.

General Information

Internal control is a process effected by an entity's oversight body, management, or other personnel that provides reasonable assurance that the objectives of an entity will be achieved.  Objectives and related risks can be broadly classified into one or more of the following three categories: 1) operations - effectiveness and efficiency of operations; 2) reporting - reliability of reporting for internal and external use, and: 3) compliance with applicable laws and regulations.

The Federal Managers' Financial integrity Act requires all federal executive branch entities to establish internal control in the "Green Book" standards, which provide criteria for assessing the design, implementation, and operating effectiveness of internal controls.  DoD entities are required to implement, evaluate, and report internal controls across the following general categories: communications, intelligence, security, comptroller/resource management, contract administration, force readiness, information technology, acquisition, manufacturing/maintenance/repair, personnel and organizational management, procurement, property management, RDT&E, security assistance, supply operations, and support services.  Further, DoD entities must report on internal controls each year, regardless of whether any deficiencies exist.

Internal controls impact all personnel on acquisition teams (across all acquisition functions) and across DoD entities.  Specific to acquisition programs, internal controls should be evaluated each year of each phase of the acquisition lifecycle. Internal control evaluations foster continuous improvement efforts for DoD entities to become more effective/efficient