Which OMB Circular is associated with the Management and Accountability Act?

Which OMB Circular is associated with the Management and Accountability Act?

• A. A-123
• B. A-109
• C. A-11
• D. A-127

Answer: (A)

Managing and accountability for internal controls is the focus here. OMB Circulars direct federal managers on how to ensure sound operations and reliable financial reporting, with clear responsibility placed on management to establish and maintain effective controls. The circular that explicitly assigns management responsibility for internal control requires agencies to design, implement, and continuously assess internal controls and to report on their effectiveness and any deficiencies. It reinforces that control is a management responsibility, integrates risk assessment and control activities, and ties into annual evaluations and corrective actions. This alignment with accountability for internal control is why it’s the one associated with the Management Accountability Act. The other circulars cited handle budgeting, budget execution, and the requirements for financial management systems. They govern different areas of federal financial management and do not focus on the explicit management responsibility for internal control that the Act emphasizes.

Managing and accountability for internal controls is the focus here. OMB Circulars direct federal managers on how to ensure sound operations and reliable financial reporting, with clear responsibility placed on management to establish and maintain effective controls.

The circular that explicitly assigns management responsibility for internal control requires agencies to design, implement, and continuously assess internal controls and to report on their effectiveness and any deficiencies. It reinforces that control is a management responsibility, integrates risk assessment and control activities, and ties into annual evaluations and corrective actions. This alignment with accountability for internal control is why it’s the one associated with the Management Accountability Act.

The other circulars cited handle budgeting, budget execution, and the requirements for financial management systems. They govern different areas of federal financial management and do not focus on the explicit management responsibility for internal control that the Act emphasizes.