NEW REQUIREMENTS ON AUDIT FOLLOWUP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B00552R001000040019-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: September 8, 2007
• Sequence Number: 19
• Publication Date: October 7, 1982
• Content Type: MEMO

EXECUTIVE SECRETARI
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EXECUTIVE OFFICE OF THE PRESIDENT'
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON,.D.C. 2OO3
MEMORANDUM FOR HEADS OF DEPARTMENTS AND AGENCIES
FROM: JOSEPH R. WRIGHT, JR.
DEPUTY DIRECTOR
SUBJEC'?`.f ? New Requirements on Alit Followup
A new.-,effort to restructure the-management and
administrative systems of the Federal.- government,.- called
"Reform '88," is being coordinated by the White House
with oversight by the newly-established Cabinet Council
on Management and Administration. The program-will be
implemented in the departments and. agencies through the
President's Task Force on Management Reform. One of the
essential elements of .the program.is.-to ensure that
managers implement the recommendations of their--
auditors, who are dedicated to reduce waste, fraudand
abuse.
The Office of Management and Budget has, over the past
year, developed new-.guidelines concerning followup on
audit reports issued by Inspectors General, the General
Accounting Office, and other audit organizations. As
part of Reform '88," OMB- is officially transmitting
these revised guidelines to agencies.
As a department/agency-head, we will rely upon you and
your management team to make these management
improvements in your agency by assuring prompt and-
proper resolution and implementation of all audit..
recommendations. I ask that you advise all your
management officials of'the importance of being
responsive to-audit recommendations,: which should result
in faster and more efficient agency collection of debts
and incorrect charges, reduced fraud and abuse, and
improved efficiencies.- This will enable agency heads
and OMB to assure that.*resolution'occurs within the
required six months, and the necessary corrective
actions within a reasonable period thereafter.. The
attached circular (A-50) contains details on the new
requirements and outlines responsibilities.
OMB staff have been working with many of the departments
and agencies for over a year to prepare for
implementation of A-50, so I anticipate a smooth
phase-in. Among the eleven standards for system design
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is an evaluation of your system's.effectiveness, to be
completed within a year from now.. This evaluation will
be reviewed by OMB.
The eleven standards which your system must meet are,
summary_
A .top-level official in-charge of the program.
Audit report-recommendations resolved within six
-.months.
Saecifi.c written plans for corrective action-
with specie lion dates.
Accurate records of the status throughout the
..resolution and correction process.
A'mechanism to resolve major disagreements
between the audit organization. and department/
agency management or contracting officials to
enable-re-solution in six months.
?.Assuran.ce that resolution is consistent with law,
.regulation,-and Administration policy.
? Coordination of resolution and corrective action
between other affected programs, departments or
agencies.
? Semi-annual reports to the-department/agency
head on all unresolved audit reports over six
months old, with reasons, and .a timetable for
resolution.
Periodic analysis of audit recommendations and
.resolution to determine trends and spot-system-
wide problems.. :. . .
Performance appraisals that reflect-
effectiveness in handling audit. recommendations.
0 Evaluation of the audit followup system within
one-year and periodically a ter that.
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The circular also includes special instructions for
responding to GAO audit reports, including the comment
process, statements to OMB or Congressional committees,
and other special requirements.
As you can see -- this is a major departure from past
efforts and procedures. Your cooperation in assuring
the expeditious and smooth operation of audit followup
procedures will be an important. contribution to the
Administration's overall effort to improve the
government's management machinery to better serve the
American people at less cost..
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