Internal Controls in a Shared Service Environment September 15, 2015 D. Michael Linder Deputy Assistant Commissioner Bureau of the Fiscal Service Department of the Treasury

ARC Background / Experience  Began providing administrative shared services (including financial management services) to other Federal agencies in 1997  Undergone annual service organization control reviews (SAS70/SSAE16) since 2002 – initially focused on financial management controls  Over time have expanded scope of control review to other services that impact financial reporting  Our SSAE16 report helps support 25 customer agency financial statement audits  Report published on ARC website at:

Benefits to Provider Organization  Facilitates audit efficiency  Facilitates audit effectiveness  Provides management ‘peace of mind’  Provides useful training material for employees  Provides useful communication tool with customer agencies

Benefits to User Organization  Facilitates audit efficiency  Facilitates audit effectiveness  Provides understanding of Provider control environment  Helps identify complementary controls needed at customer agency  Helps fulfill management’s A-123 responsibilities

Mike Linder, Deputy Assistant Commissioner Fiscal Accounting