Office of Management and Budget Circular A-123 (Appendix A) Management Accountability and Control

1. Office of Management and Budget Circular A-123 (Appendix A)Management Accountability and Control Implementation Status Grace Huang February 13, 2007

2. FY 07 Overall Strategies • Assessment and testing of risks/controls in moderate and low risk areas • Remediation depends on the results of assessment and/or testing • Realignment of FY 2006 data for additional requirements for FY 2007 • Defining FY 2008 scope (pending HQ guidance) • Meeting quarterly and final reporting deadlines

3. Assessment Strategies • Internal Audit conducted trainings on internal controls for the OCFO in December 2006 • Understanding DOE HQs and Chicago guidance and communicating to implementation team in timelines, milestones, and/or instructions • Reviewing and evaluating controls in moderate and low risk areas so that controls may be reasonably consolidated – reduced number of controls should streamline the overall testing effort

4. Assessment Status

5. Path forward • Testing to be completed for controls in moderate/low risk sub-categories/processes (2/3 of the data) with relatively same amount of time as FY06 (1/3 of the data was tested) • Focusing testing effort on key controls • Recruiting volunteers outside of IAS to assist with testing activities to create opportunities for staff to understand operations in different areas and learn self-assessment skills • Also relying on testing performed within the past 12 months

6. Path forward • Different remediation strategies for FY07: Controls with minor deficiencies not necessarily requiring remediation • Working with Testing team to identify a methodology where deficient controls may be tested (diagnosed) before remediation work begins

7. Questions?