Page 35 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

Analysis of Systems, Controls, and Legal Compliance

Management Assurance

This section addresses PCLOB’s
compliance with the Federal Managers’
Financial Integrity Act of 1982, other
applicable laws, and the agency’s financial
management system strategy.

Federal Managers’ Financial Integrity
Act

The Federal Managers’ Financial Integrity
Act (“FMFIA”) mandates that agencies
establish effective internal control to
provide reasonable assurance that (1)
obligations and costs are in compliance
with applicable law; (2) funds, property,
and other assets are safeguarded against
waste, loss, unauthorized use, or
misappropriation; and (3) revenues and
expenditures applicable to agency
operations are properly recorded and
accounted for to permit the preparation of
accounts and reliable financial and
statistical reports and to maintain
accountability over the assets.

FMFIA requires agencies to establish accounting and administrative controls over program,
operational, and administrative functions, in addition to accounting and financial
management. FMFIA also requires standards to ensure for the prompt resolution of all
audit findings and mandates for agency heads to annually evaluate agency controls and
provide an assurance statement on the adequacy of internal and administrative controls
(Section 2) and conformance of systems with government-wide standards (Section 4).

The FMFIA FY 2020 Unmodified Management Assurance Statement, included later in this
section, is consistent with the FY 2020 financial statement audit report, included in the
“Financial Information” section.

FY 2020 AGENCY FINANCIAL REPORT 26