5 CFR § 1315.3 - Responsibilities.

§ 1315.3 Responsibilities.

Each agency head is responsible for the following:

(a) Issuing internal procedures. Ensuring that internal procedures will include provisions for monitoring the causes of late payments and any interest penalties incurred, taking necessary corrective action, and handling inquiries.

(b) Internal control systems. Ensuring that effective internal control systems are established and maintained as required by OMB Circular A-123, “Management Accountability and Control.” 1 Administrative activities required for payments to vendors under this part are subject to periodic quality control validation to be conducted no less frequently than once annually. Quality control processes will be used to confirm that controls are effective and that processes are efficient. Each agency head is responsible for establishing a quality control program in order to quantify payment performance and qualify corrective actions, aid cash management decision making, and estimate payment performance if actual data is unavailable.

1 For availability of OMB circulars, see 5 CFR 1310.3.

(c) Financial management systems. Ensuring that financial management systems comply with OMB Circular A-127, “Financial Management Systems.” 2 Agency financial systems shall provide standardized information and electronic data exchange to the central management agency. Systems shall provide complete, timely, reliable, useful and consistent financial management information. Payment capabilities should provide accurate and useful management reports on payments.

2 See footnote 1 in § 1315.3(b).

(d) Reviews. Ensuring that Inspectors General and internal auditors review payments performance and systems accuracy, consistent with the Chief Financial Officers (CFO) Act requirements.

(e) Timely payments and interest penalties. Ensuring timely payments and payment of interest penalties where required.