Risk Management and Internal Controls Standards Services

The vendor is required to provide to establish a contract through competitive negotiation from offerors to implement requirements of the agency risk management and internal control standards (ARMICS).
- The contractor selected preferably will be an individual or group with proven experience with the commonwealth ARMICS and a demonstrated knowledge of auditing, fiscal management, financial operations, and internal controls, or has proven experience in auditing for Sarbanes-Oxley compliance.
- The objectives of the internal control directive are:
• Strategic – support for state being recognized as the best-managed state in the nation through internal control best practices
• Operational – effective and efficient use of fiscal resources and other assets
• Reporting – integrity and reliability of financial reporting
• Compliance – compliance with applicable laws and regulations
• Stewardship – protection and conservation of assets  a. Component 1
• Evaluate and update the design of DJJs internal controls across five components plus risk and evaluation:
o Control environment
o Risk assessment
o Control activities
o Information and communication
o Monitoring
o Complete assessment in accordance with directive 1-08.  • Test the effectiveness of the agency level controls and document the results of those tests.
• The report for this state shall include a minimum of the following:
o Identification of deficiencies and recommendations for improvement.
o Assurances of the adequate assessment of the effectiveness of the DJJs internal controls in accordance with ARMICS standards issues by the office of the comptroller as applicable to the processes at the department.
b. Component 2
• examine the supporting documentation from prior ARMICS implementation and complete the Following:
o Determine if any organizational changes occurred to require a reevaluation of the fiscal processes determined to be significant for the department
o All new significant fiscal processes shall be documented, controls evaluated and tested.
o Determine if there are any changes to areas identified as significant fiscal processes.
o Reevaluate the controls for those processes experiencing change and test the controls to ensure they function as intended.
o for all significant fiscal processes that have not changed since the prior year, retest a sample of the Controls to ensure that they are still working.
c. component 3
• The corrective action plan must minimally include the following elements:
o Summary description of the deficiency in internal control
o When the deficiency was identified
o Classify the deficiency in internal control in accordance with guidance in directive 1-08
o A target date for completion of corrective action in consultation with the appropriate personnel designated by the agencies.
o The date of completion shall be within the next fiscal year following the date of the assessment.
o Identification of personnel responsible for monitoring progress
d. Component 4
• The contractor shall provide a summary for each stage by September 16, each year, to the agency designated personnel.
- Contract Period/Term: 1 year