Managers' Internal Control Program (MICP)

(One Program-Two Processes)

The Office of Management and Budget (OMB) Circular A-123, Management's Responsibility for Internal Control, defines management's responsibility for internal control in federal agencies. Circular A-123 and the statute it implements, the Federal Managers' Financial Integrity Act of 1982 (FMFIA), are the center of the existing federal requirements to improve internal control. Department of Defense (DoD) issued instructions for assigning responsibilities and prescribing procedures for the execution of the Managers' Internal Control Program (MICP) under Department of Defense Instruction Number 5010.40. DeCA developed DeCAD 70-2 to provide compliance instructions to provide oversight and transparency in response to FMFIA and accountability in DeCA's stewardship for protecting the benefit for those who serve.

DeCA reported in its FY 2010 Statement of Assurance, Internal Controls Over Financial Reporting (ICOFR), Internal Controls Over Non-Financial Operations (ICONO), Internal Controls Over Financial Systems (ICOFS), American Recovery and Reinvestment Act (ARRA),and Internal Controls Over Acquisition Function (ICOAF) processes. DeCA's MICP plan for FY 2011 includes relooking the testing procedures of each of our Assessable Unit Manager's (AUMs) business processes and making sure that they have defined key business process testing and controls more effectively. We have mapped 101 processes against OMB Circular A-123: Appendix A methodology.

Each year we relook each of the business processes mapped to make sure that we don't need to make changes to a better or best practice in implementing the Appendix A methodology into our process to assist DeCA in providing reasonable assurance that:

• Obligations and costs are in compliance with applicable law;
• Funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and
• Revenues and expenditures applicable to agency operations are properly recorded and accounted for to permit the predation of accounts and reliable financial and statistical reports and to maintain accountability over assets.

The three objectives of internal controls are to ensure the effectiveness and efficiency of operations, reliability of financial reporting and compliance with applicable laws and regulations. DeCA is considered the "Gold Standard" for implementing OMB Circular A-123: Appendix A. To obtain a copy or sample of templates utilized in DeCA's business process mapping contact one of DeCA's MICP staff Ashley Elder or Maurice Jenkins.

FY 2012 Annual Statement of Assurance

• Description of the Concept of Reasonable Assurance and How the Evaluation was Conducted

FY 2011 Annual Statement of Assurance

• Description of the Concept of Reasonable Assurance and How the Evaluation was Conducted

FY 2010 Annual Statement of Assurance

• Description of the Concept of Reasonable Assurance and How the Evaluation was Conducted

FY 2009 Annual Statement of Assurance

• Annual Statement of Assurance Cover
• Tab A – Description of the Concept of Reasonable Assurance and How the Evaluation was Conducted

FY 2008 Annual Statement of Assurance

• Annual Statement of Assurance Cover
• Tab A – Description of the Concept of Reasonable Assurance and How the Evaluation was Conducted

FY 2007 Annual Statement of Assurance

• Annual Statement of Assurance Cover
• Tab A – Description of the Concept of Reasonable Assurance and How the Evaluation was Conducted