Which circular addresses internal control responsibilities?

• A. OMB Circular A-11
• B. OMB Circular A-136
• C. OMB Circular A-76
• D. OMB Circular A-123

Answer: (D)

Internal control responsibilities in federal agencies are defined by the circular that assigns management accountability for establishing and maintaining effective internal controls and requires ongoing assessment and reporting. OMB Circular A-123 does this by detailing management’s responsibility for internal control across the agency, requiring annual evaluation of internal control over operations (and over financial reporting where applicable), and mandating reporting on the adequacy and effectiveness of controls plus corrective actions for deficiencies. The other circulars address different topics: budget formulation and execution, financial statements and performance reporting, and competition in contracting. So the circular that addresses internal control responsibilities is the one that explicitly assigns these duties and requires regular evaluation and reporting.