GSA Management Assurances
Statement of Assurance
The U.S. General Services Administration (GSA) management is responsible for managing risks and establishing and maintaining effective internal control and financial management systems that meet the objectives of the Federal Managers’ Financial Integrity Act (FMFIA), the Federal Financial Management Improvement Act (FFMIA), and related statutory and federal policy guidance.
In accordance with OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, GSA conducted its assessment of the effectiveness of internal controls over financial reporting, which includes the safeguarding of assets and compliance with applicable laws and regulations. Based on the results of the assessment, GSA can provide reasonable assurance that internal controls over operations, reporting, and compliance were operating effectively as of September 30, 2017.
Although FY 2017 was a strong year with marked improvement in GSA’s management controls environment, we have identified and are mitigating several concerns.
During GSA’s annual internal controls self-assessment process, our management team identified succession planning as an area of concern. GSA faces the same challenge as other federal agencies; many employees are retirement eligible and can leave the federal workforce. Workforce planning, which includes staffing and succession plans will mitigate the impact of high retirement eligibility in mission critical occupations. This will be accomplished through hiring, training, and development. In addition, maximizing employee engagement and employee performance will ensure the GSA workforce is prepared and able to meet the Agency’s mission and agency performance goals.
Another area GSA is closely monitoring is the internal controls and financial management practices and procedures of legacy 18F and the Technology Transformation Service (TTS) (now a FAS Portfolio). As a result of an internal review and the recommendations in the Office of Inspector General Evaluation of 18F, JE17-001 (Oct. 24, 2016), GSA implemented stronger management controls over 18F. The internal review and OIG report identified opportunities for improvements in internal controls; including instances where work was started before signed agreements were in hand, resulting in Economy Act violations. GSA will continue to monitor compliance with these controls during FY 2018.
A further challenge related to the Federal Citizens Services Fund (FCSF) was identified and mitigated in FY 2017. GSA notified the Office of Management and Budget (OMB) of a potential Antideficiency Act (ADA) violation, which resulted from utilizing the FCSF to support search capability for state and local government websites. GSA corrected the situation by ending these services in February 2017. Another potential ADA violation is being reviewed related to the Acquisition Services Fund (ASF) apportionment for flow-through activity. GSA is implementing processes that more accurately forecast orders from our Federal partners and monitor order activity against apportioned budget authority.
Finally, GSA has monitored and assessed its financial systems to ensure compliance with Federal financial management standards, as required by the FFMIA of 1996 and OMB Circular A-123 Appendix D. GSA assessed its degree of substantial compliance by utilizing the FFMIA Risk Model, and all financial management systems substantially comply with FFMIA as of September 2017. GSA is confident that all systems substantially comply with the Federal accounting standards promulgated by the Federal Accounting Standards Advisory Board, and with the U.S. Standard General Ledger (USSGL) at the transaction level.
U.S. General Services Administration