scope:

PURPOSE. The recent revision of OMB Circular A-123 has reemphasized the importance of internal control in the Federal Government and established much higher and more specific standards for internal control over financial reporting. In addition, the enactment of the Department of Homeland Security (DHS) Financial Accountability Act has resulted in new requirements for the evaluation, reporting and auditing of internal controls over financial reporting in DHS. This Instruction provides policy statements relative to References (a), (b), and (c) noted above. It also provides information regarding the Coast Guard (CG) Internal Control (IC) Program initiative. The IC Program was initiated in Fiscal Year 2005 to provide guidance for conducting and reporting annually on the results and conclusions of the CG-wide internal control evaluations. IC Program evaluations support the Commandant's annual internal control assertions as required by the FMFIA and DHS Financial Accountability Act legislation. Information related to specific IC Program evaluations will be distributed separately.