Internal control is an integral component of NASA
management that provides reasonable assurance
of the effectiveness, efficiency and safety of
operations, reliability of financial reporting,
compliance with applicable laws and regulations,
and safeguarding of assets.

The Federal Managers Financial Integrity Act of
1982 (FMFIA) requires agencies to establish and
maintain internal control. The FMFIA requires the
NASA Administrator to submit to the President,
Congress, and OMB an annual Statement of
Assurance on whether the Agency's internal
controls are achieving their intended
objectives.

OMB Circular No. A-123 defines management's
responsibility for internal control and provides
guidance to Federal managers on improving the
accountability and effectiveness of Federal programs
and operations. Internal control includes processes
for planning, organizing, directing, controlling, and
reporting on NASA operations.

Management is responsible for developing and
maintaining internal control activities that comply with
GAO Standards for Internal Control in the Federal
Government:  Control Environment, Risk Assessment,
Control Activities, Information and Communications,
and Monitoring.

To implement management's commitment to
maintain effective agency internal control
activities that comply with GAO Standards,
the Office of Internal Controls and Management
Systems has established NASA Internal Control
Training for all employees. NASA Internal
Control Training conveys essential information
regarding the importance of regulatory internal
control requirements.

NASA Policy Directive (NPD) 1200.1, NASA Internal
Control articulates NASA policy for developing and
maintaining internal control policies, procedures,
plans, and assessments. The NPD requires the
Office of Internal Controls and Management Systems
to develop internal control policy and implementation
guidance, prepare the annual Statement of Assurance
guidance and call letter, prepare the annual
Statement of Assurance, conduct periodic reviews of
Center/Headquarters internal control practices, and
provide general internal control awareness and
training. The NPD places responsibility for the
implementation of internal controls with Officials
-in-Charge and Center Directors.

The Operations Management Council is responsible
for maintaining cognizance of internal control
policies and initiatives and serves as the final
review body for the annual Statement of Assurance
process. The Senior Assessment Team serves as
the functional owner of the Agency's internal control
program, assesses the overall effectiveness of
Agency, Center, and organizational internal control
efforts, and oversees the annual Statement of
Assurance process.

Federal Managers' Financial Integrity Act
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OMB A-123
(including Appendix A)
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OMB A-123
Appendix B
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OMB A-123
Appendix C
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GAO Standards for
Internal Control in the Federal Government
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NPD 1200.1E - NASA Internal Control
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