Guidelines for Assessing the Acquisition Function



The purpose of this memorandum is to provide guidelines for conducting entity level internal control reviews of the acquisition function as required by Office of Management and Budget (OMB) Circular A-123. OMB Circular A-123, Management’s Responsibility for Internal Control, requires agency managers to continuously monitor and improve the effectiveness of internal control associated with their programs. The guidelines include a template to provide a standard approach for conducting the entity level acquisition reviews required under the Circular. See section I of the Circular and sections III.B and C of Appendix A. The guidelines also require agencies to integrate their assessment efforts with existing agency internal control processes and practices to ensure the coordinated establishment, assessment and correction of internal controls for acquisition.


Agencies identified in the Chief Financial Officers (CFO) Act are required to use the template for acquisition and program management reviews conducted during the FY 2009 internal control review and reporting cycle and thereafter. Although full implementation and use of the template is required in FY 2009, agencies are strongly encouraged to use the template during the remainder of FY 2008. Agencies not identified in the CFO Act are strongly encouraged to incorporate the template, as appropriate, into their acquisition and program management review process. This integration will contribute to a more holistic assessment of agency acquisition activities and minimize duplication of effort. Use of the template will also help CAOs in carrying out their responsibilities under section 1421 of the Services Acquisition Reform Act, 41 U.S.C. 414, to monitor the performance of acquisition activities and acquisition programs.