Procedural
Requirements
Effective Date: July 08, 2021
Expiration Date: July 08, 2026
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NASA Procedural Requirements |
NPR 9130.1A Effective Date: July 08, 2021 Expiration Date: July 08, 2026 |
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3.1.1 Per 31 U.S.C. § 3512, Federal agencies are required to establish ongoing evaluations and reports of the adequacy of the systems of internal accounting and administrative controls.
3.1.2 As described in the Executive Agency Accounting and Other Financial Management Reports and Plans, 31 U.S.C, § 3512 (d)(1), OMB is responsible for establishing guidance for Federal agencies to follow in meeting the requirements of 31 U.S.C. § 3512.
3.2.1 On September 30, 2013, OMB issued OMB Memorandum M-13-23, Compliance with the Federal Financial Management Improvement Act of 1996.
a. As described in the OMB Memorandum M-13-23, Agencies were required to make note of the following changes:
(1) OMB Circular No. A-127, Financial Management Systems was rescinded. OMB stated the purpose for the rescission of Circular No. A-127 was to reduce the cost, risk, and complexity of financial system modernizations.
(2) Previous Federal system requirements issued by the Financial Systems Integration Office (FSIO) (and prior to FSIO, the Joint Financial Management Improvement Program (JFMIP)) were no longer OMB requirements for financial management systems.
(3) The terminology for Federal Agency financial systems was changed by OMB. The term "core financial systems" was replaced with "financial systems." See Appendix A of this NPR for the new terminology and definitions.
b. Designated the U.S. Treasury (in place of FSIO) to be responsible for developing and maintaining a revised set of financial management system requirements.
c. The following sources are to be used by Federal agencies for requirements on compliance to 31 U.S.C. § 3512:
(1) OMB Circular No. A-123, Appendix D, Compliance with the Federal Financial Management Improvement Act of l996 (09/20/2013).
(2) OMB Circular No. A-130, Managing Federal Information as a Strategic Resource.
(3) U.S. Treasury Financial Manual (TFM), Chapter 9500, Revised Federal Financial Management System Requirements for Fiscal Reporting.
(4) U.S. Government Standard General Ledger (USSGL) at the transaction level.
3.2.2 As described in OMB Circular No. A-123, Appendix D, Federal Agencies are required to establish and maintain financial management systems that substantially comply with all the following requirements:
a. Federal Financial Management System (FFMS) requirements in the following three areas:
(1) Reliable Financial Reporting. The objectives of financial reporting include reliable, timely, and accurate financial information and reporting on the Federal agency, including maintaining internal control over financial reporting and financial system security.
(2) Effective and Efficient Operations. The objectives of effective and efficient operations include maintaining cost-effective financial operations and ensuring resources are safeguarded against waste, loss, and misuse.
(3) Compliance with Applicable Laws and Regulations. Compliance objectives ensure financial transactions are consistent with laws, regulations, and policies.
b. Applicable Federal Accounting Standards. Financial management systems are required to maintain accounting data that is reported in accordance with Generally Accepted Accounting Principles (GAAP).
(1) The Federal Accounting Standard Advisory Board (FASAB) is designated by the American Institute of Certified Public Accountants (AICPA) as the source of GAAP for Federal reporting entities.
(2) As described in the Statement of Federal Financial Accounting Standard (SFFAS) 34, The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board, FASAB accounting principles are categorized in descending order of authority.
c. The USSGL at the transaction level. Federal agencies are required to record financial events by applying the requirements of the USSGL guidance in the TFM. This is clarified further:
(1) Application of the USSGL at the transaction level means that each time an approved transaction is recorded in NASA's financial management system, it generates the appropriate general ledger accounts for posting the transaction according to the rules defined in the USSGL guidance.
(2) Individual transactions may be recorded in the financial system in detail or in summary, as long as the transaction is traceable to the transaction source.
3.2.3 Internal Audits and Reporting
a. Federal agencies are required to conduct ongoing evaluations and reports on the adequacy of their systems of internal accounting and administrative control, to be in compliance with 31 U.S.C. § 3512. See NPR 9010.3 for more details.
b. This evaluation includes a review of the Federal agency's financial management systems to determine if they are in compliance with Governmentwide requirements, as part of Management's Statement of Assurance in the AFR.
3.3.1 FFATA and DATA Act
a. Federal Funding Accountability and Transparency Act (FFATA) of 2006, Pub. L. 109-282, requires Federal agencies to increase the transparency and accountability of Federal contracts and financial assistance awards by displaying Federal contract, grant, loan, and other financial assistance on a publicly accessible and searchable Web site.
b. DATA Act was an expansion of FFATA. It requires Federal agencies to also publicly report expenditures and to link contract, loan, and grant spending information to Federal programs.
3.3.2 Requirements of the DATA Act. NASA managers who are responsible for DATA Act submissions will:
a. Comply with DATA Act requirements for Governmentwide financial data standards in defining reporting elements, which are issued by the U.S. Department of the Treasury.
b. Review and certify the accuracy of Agency data submitted to public Federal databases under the DATA Act.
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