About the Green Book
United States Government Accountability Office (GAO)
GAO Purpose[1]
GAO, often called the "congressional watchdog,” is an independent, non-partisan agency that works for Congress. GAO examines how taxpayer dollars are spent and provides Congress and federal agencies with objective, non-partisan, fact-based information to help the government save money and work more efficiently.
GAO History[2]
The Budget and Accounting Act created GAO in 1921 when Congress realized the need to control growing government expenditures and debt after World War I. Until the end of World War II, GAO primarily checked the legality and adequacy of government expenditures.
After World War II, as government responsibilities and programs grew, so did GAO. The focus of our work shifted toward helping Congress monitor executive branch agencies’ programs and spending.
In 1974, Congress broadened GAO's evaluation role and gave us greater responsibility in the budget process. This was when we started to recruit scientists, actuaries, and experts in fields such as health care, public policy, and computers.
In 1986, we assembled a team of professional investigators, many with law enforcement backgrounds, to look into allegations of possible criminal and civil misconduct.
During the last 20 years, we’ve strived to improve accountability by alerting policymakers and the public to emerging problems throughout government.
In 2004, GAO's legal name changed from the General Accounting Office to the Government Accountability Office. The change reflected the agency’s expanding role in a growing federal government. Moving beyond financial audits, GAO began conducting performance audits—examining how government programs were performing and whether they were meeting their objectives.
In 2021, GAO celebrated a century of service as a source of objective, non-partisan information on government operations. Today, our agency that once checked millions of government vouchers has become a multidisciplinary organization equipped to handle Congress’s toughest audit and evaluation assignments.
We have looked at contemporary issues like opioid addiction, the gig economy, affordable housing, and food safety. The agency has also established a science and technology team to meet Congress’ growing need for information on cutting edge issues like artificial intelligence and infectious disease modeling. GAO also evaluated the largest response to a national emergency in U.S. history, the $2.6 trillion COVID-19 response legislation, and made recommendations about how to improve its effectiveness in dealing with public health issues and the economy.
US GAO's Standards for Internal Control in the Federal Government
The US GAO created the Standards for Internal Control in Federal Government as a result of the Federal Managers' Financial Integrity Act of 1982 (FMFIA). The FMFIA of 1982 amended the Accounting and Auditing Act of 1950 to strengthen internal controls across federal agencies. It mandates continuous evaluation and annual reporting on the effectiveness of internal accounting and administrative systems. Provides standards for establishing, maintaining, and evaluating internal control systems in government entities.
The Standards for Internal Control in Federal Government is normally referred to as the Green Book for its distinctly green cover page.
Click here for a PDF version of the Green Book.
Click here for a digital version of the Green Book
US GAO Green Book Applicability Requirements
The Green Book must be followed by all Federal government entities within the Executive branch of government. The Green Book is not required for the Congressional and Judicial branches of Federal government.
The Green Book may also be adopted by federal entities outside the executive branch and by nonfederal entities, such as state, local, and quasi-governmental entities and nonprofit organizations, as a framework for an internal control system.
Note: Maricopa County is not obligated to comply with the GAO's Standards for Internal Control in the Federal Government. For the purpose of this governance assessment, a standard was sought to minimize biases from arbitrary judgements of MC performance. Hence, none of the deviations from the Green Book represent a noncompliance issue. These deviations from the Green Book are noted to identify potential areas of improvement for Maricopa County as well as all of the Arizona Counties.
US GAO Green Book Documentation Requirements
The Green Book identifies documentation requirements in the Overview, Section 2 - Establishing an Effective Internal Control System. The attributes of Documentation Requirements is as follows, with emphasis added by us, not the GAO.
OV2.10 Documentation is a necessary part of an effective internal control system. The level and nature of documentation may vary based on the size of the entity and the complexity of the processes it performs. Management exercises judgment in determining the extent or type of documentation that is needed.
OV2.11 Documentation is required for the effective design, implementation, and operating effectiveness of an entity's internal control system. Management develops and maintains documentation of its internal control system.3
The Green Book also includes the following minimum documentation requirements:
- If management determines that a principle is not relevant, management supports that determination with documentation that includes the rationale for how, in the absence of that principle, the associated component could be designed, implemented, and operated effectively. (paragraph OV2.06)
- Management documents the results of the risk assessments, including the identification, analysis, and response to risks, that are completed on both a periodic and ongoing basis. This includes documentation of the consideration of risks related to fraud, improper payments, information security, and significant internal and external changes that could impact the internal control system. (paragraph 7.15)
- Management documents a change assessment process for identifying, analyzing, and responding to risks related to significant changes so that the internal control system can be quickly adapted as needed to respond to significant changes as they occur. (paragraph 9.05)
- Management establishes control activities by documenting in policies what is expected and in procedures specified actions that implement policies, to mitigate risks to achieving the entity's objectives to acceptable levels. (paragraph 12.02)
- Management evaluates and documents the results of ongoing monitoring and separate evaluations to identify internal control issues. (paragraph 16.09)
- Management evaluates and documents internal control issues and determines appropriate corrective actions for internal control deficiencies, including those reported from internal and external audits and evaluations, on a timely basis. (paragraph 17.05)
- Management completes and documents corrective actions to remediate internal control deficiencies, including those reported from internal and external audits and evaluations, on a timely basis. (paragraph 17.06)
OV2.12 These requirements represent the minimum level of documentation in an entity's internal control system. Management exercises judgment in determining what additional documentation may be necessary for an effective internal control system. If management identifies deficiencies in achieving these documentation requirements, the effect of the identified deficiencies is considered as part of management's summary determination of whether the related principle is designed, implemented, and operating effectively.
OV2.13 Minimum documentation requirements are identified throughout the Green Book with a symbol and the wording "[documentation requirement]" following the narrative. The minimum documentation requirements are also summarized in appendix I.
US GAO Green Book Principles
- Principle 1
- Principle 2
- Principle 3
- Principle 4
- Principle 5
- Principle 6
- Principle 7
- Principle 8
- Principle 9
- Principle 10
- Principle 11
- Principle 12
- Principle 13
- Principle 14
- Principle 15
- Principle 16
- Principle 17
