SOW_OFM_ESA-BEA.docx

Economics and Statistics Administration and Bureau of Economic Analysis Department of Commerce Statement of Work

1. BACKGROUND

Section 3512 (c) and (d) of Title 31 of the United States Code (commonly known as the Federal Managers’ Financial Integrity Act (FMFIA)) requires the Comptroller General to issue standards for internal control in the federal government. Standards for Internal Control in the Federal Government (known as the Green Book), provide the overall framework for establishing and maintaining an effective internal control system. OMB Circular A-123 Appendix A provides specific requirements for assessing and reporting on controls in the federal government.

The Office of Management and Budget (OMB) issued Circular A-123, to provide specific guidance for agencies to follow in implementing internal control programs. Circular A-123 defines internal control as the steps an agency takes to provide reasonable assurance that the agency‘s objectives are achieved through: (1) effective and efficient operations, (2) reliable financial reporting, and (3) compliance with applicable laws and regulations. The safeguarding of assets is a subset of all of these objectives. Internal controls should be designed to provide reasonable assurance to prevent or detect unauthorized acquisition, use, and disposition of assets.

The Green Book, dated July 2016, issued by Government Accounting Office, provide managers criteria for designing, implementing, and operating and effective internal controls system. The Green Book defines the standards through components and principles and explains why they are integral to an entity’s internal control system.

2. SCOPE

Contractor will be responsible for the A-123 testing at the Department of Commerce (DOC) Herbert Clark Hoover Building (HCHB) for Economics and Statistics Administration/Bureau of Economic Analysis. Space will be provided. The Economics and Statistics Administration and Bureau of Economic Analysis, although separate entities, share a single line appropriation. In addition to space at HCHB, if meetings at the BEA are required, space will be provided at the Suitland Federal Center in BEA assigned space on an as-needed basis. Therefore, this will be one task order.

Based on FY 2017 Department A-123 Implementation Plan, Economics and Statistics Administration/Bureau of Economic Analysis will be requesting testing assistance as listed below:

· Budget Execution: covers timeframe from July 1, 2016 through June 30, 2017 and

· Non-routine Process (where applicable): Covers timeframe from July 1, 2016 through June 30, 2017

DOC will be providing the following FY 2017 A-123 Appendix A Planning Documents as part of this task order:

· FY 2017 A-123 Implementation Plan

· FY 2017 DOC Consolidated Process Level Risk Assessment

· FY 2017 Entity Level Risk Assessment

· FY 2017 Budget Execution Template

· FY 2017 DOC Non- Routine Template

· FY 2017 Sampling Plan

· DOC A-123 Work Paper Guidance (Exhibits 1-9)

· FY 2017 Materiality Analysis

3. REQUIREMENTS

Contractor will assist the Economics and Statistics Administration/Bureau of Economic Analysis with FY 2017 A-123 testing the following requirements below:

· Testing will be performed using the Departmental Test Templates and Sampling Plan.

· Any deviations from Departmental Sampling Plan must be documented in workpapers with explanation

· Non-Routine sub-process review consist of accounting processes that are at a higher risk of audit findings because they involve estimates, are performed manually, and/or are not performed frequently. This schedule ensures these accounting processes and their related controls are reviewed for proper design. The internal controls over these processes are addressed in separate test templates by Process (Cycle).

· Budget Execution process consist of a review of the Budget Authority, Apportionments, and Obligations.

· If a step in Test Template is non-applicable to bureau, the reason must be documented in workpapers unless the bureau is already listed on the “Control Activity Not Applicable to These Bureaus” column.

· Retain backup for all sample size selections

· Tie back the sample control total to the trial balance and document in work papers (when applicable)

· Document review of any SSAE 16 reports if applicable.

· Identify process, sub-process and test step being tested on the work paper.

· Where exceptions are noted:

· Document the existence of compensating controls if applicable;

· Document how many exceptions out of total population were found based on Department’s established reporting template.

· Workpapers must have evidence of supervisory review.

· Provide complete test results including all supporting documentation in a binder for each bureau separated by sub-process and a lead sheet of all findings.

4. DELIVERABLES:

Contractor will provide the following for Economics and Statistics Administration/Bureau of Economic Analysis:

*Government has 10 business days accept or reject deliverables.

5. PERIOD OF PERFOMANCE FOR A-123 TESTING:

All testing and deliverables should be completed and deliverables should be submitted to DOC by September 2, 2017.

Contracting Officers Technical Representative:

COR and Task Manager (TM) delegations will be made at the time of award.

Bureau Contracting Officer:

DOC Subject Matter Expert:

Esther Kim US Department of Commerce 1401 Constitution Ave, NW Room D200 Washington, DC 20230-0001 Phone: 202-482-0763 Email: ukim@doc.gov