NASA Procedural Requirements

NPR 9010.3A Effective Date: February 03, 2020 Expiration Date: February 03, 2025

Subject: Financial Management Internal Control

Responsible Office: Office of the Chief Financial Officer

Chapter 2. Internal Control Assessments and Quality Assurance Reviews

2.1 Overview

2.1.1 NASA conducts financial management internal control assessments to determine the effectiveness of the design and operation of internal controls. As a result of the reviews, the controls are determined to be designed and operating effectively or deficiencies are identified and documented. Any identified deficiencies are followed and monitored through the development of Corrective Action Plans (CAPs). The internal control review process supports the financial management internal control program in compliance with OMB Circular No. A-123, 31 U.S.C. § 3512, and GAO-14-704G.

2.1.2 Financial management internal control reviews provide benefits by: (1) identifying and eliminating excess controls that may have accumulated over the years, identifying and correcting control gaps or weaknesses to establish the optimum internal control system; (2) requiring management consideration of risks in relation to the cost of instituting or maintaining management controls and ensuring that operational risks that remain do so based on a considered decision rather than oversight; (3) providing managers with a reasonable degree of confidence that their financial management internal controls are being implemented and carried out as directed; (4) implementing a systematic approach toward ensuring that the financial management internal control program is executed according to legal, regulatory, and policy requirements; and (5) supporting the Agency CFO’s annual Statement of Assurance for Internal Control over Financial Reporting.

2.1.3 NASA conducts quality assurance reviews in order to evaluate compliance with generally accepted accounting principles, other Federal requirements, and Agency policy. Special reviews of financial management operations and processes may be conducted as directed by OCFO management.

2.2 Internal Control Assessments and Quality Assurance Review Requirements

2.2.1 The Agency OCFO shall conduct internal control assessments to assure compliance with the requirements of 31 U.S.C. § 3512 and OMB Circular No. A-123.

2.2.2 The OCFO, QAD may conduct quality assurance reviews, based upon assessment and identification of risks within financial operations to identify the root cause of process deficiencies, make recommendations to resolve those deficiencies, and promote sound financial management practices.

2.2.3 Annually, the Director, QAD, will ensure that risk assessments are conducted in accordance with OMB Circular A-123, testing of transactions is performed, results are reported and communicated, corrective actions are developed, and any identified deficiencies are mitigated.

2.3 Quality Assurance Reviews

2.3.1 Annually, the OCFO, QAD, in coordination with the Agency DCFO, finance, and financial process owners shall establish the need and schedule for quality assurance reviews to be conducted during that year.

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