explore logical integration points between enterprise risk management activities and internal control processes to preserve organizational value and enhance decision-making.


Further implementation of the ERM program will build upon the AOC’s strategic review process established by the GPRA Modernization Act of 2010.


At the AOC, future-planned activities include the linkage of ERM to the agency’s strategic goals, objectives and outcomes — enabling the AOC to improve its mission delivery. To that end, successful implementation requires the AOC to continue fostering a transparent culture that encourages the open communication about potential risks. The AOC’s ERM program is an opportunity to help the agency improve its processes and performance, while also formalizing the impressive work already undertaken by its personnel.


Financial Systems


As discussed in the Federal Financial Management Improvement Act section of the PAR, FFMIA requires federal agencies’ financial management systems to provide reliable financial data that complies with federal financial system requirements, applicable federal accounting standards and the U.S. Government Standard General Ledger at the transaction level. To assess conformance,


the agency uses internal control assessments based on implementation guidance from OMB, results of OIG reports and reports from the annual independent financial statement audit. The overall assessment relies upon the evaluations made under the OMB Circular A-123, Appendix A. When applicable, particular importance is given to any material weakness or significant deficiency identified during the internal control assessments.


Overall Assessment


Based on the procedures performed, the AOC does not consider any identified deficiencies to be material weaknesses in internal controls that would warrant a less than unqualified assertion on internal control over reporting or significant deficiency reporting for FMFIA systems purposes.


Other Information


A summary of the management assurances is provided in Section IV: Other Information. For additional information, please refer to The AOC Inspector General’s Statement of Management Opportunities and Performance Challenges, also located in Section IV.


2019 PERFORMANCE AND ACCOUNTABILIT Y REPORT


Management’s Discussion and Analysis • Section I


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