Federal Policy
OMB Revises Federal Internal Control Guidance
March 13, 2026
The Office of Management and Budget (OMB), led by Director Russell Vought, has issued updated internal control guidance that shifts responsibility for internal controls and risk assessments from the Government Accountability Office (GAO) to individual federal agencies. This policy change emphasizes enhanced agency accountability and ownership over procurement risk management and financial governance, reducing reliance on external oversight by GAO. The update aligns with recent executive orders aimed at strengthening federal financial controls and protecting taxpayer funds.
- Federal agencies must now directly manage and implement internal control standards and risk assessments without defaulting to GAO recommendations.
- Procurement professionals should anticipate increased agency-level scrutiny and responsibility for compliance with internal control requirements.
- This shift may affect audit processes, contract oversight, and risk mitigation strategies within federal procurement operations.
- Contractors and vendors should be aware that agencies are expected to exercise greater control over procurement risk management, potentially impacting contract administration and compliance expectations.
prior policy relied too heavily on outside watchdogs such as the Government Accountability Office (GAO)
— Russell Vought
Agencies
Office of Management and Budget, Government Accountability Office, Congress, President of the United States
Locations
Sources
- Vought takes aim at GAO in new guidance - Nextgov/FCW · Nextgov/FCW · Mar 12
- OMB Updates Internal Control Rules, Shifts Responsibility Away From GAO · meritalk · Mar 13
- OMB Updates Internal Control Rules, Shifts Responsibility Away From GAO – MeriTalk · MeriTalk · Mar 13
- OMB Updates Internal Control Rules, Shifts Responsibility Away From GAO · meritalk · Mar 13