Management Alert 26-M-03

The CPSC's lack of necessary internal controls over the segregation of duties has created a potential fraud risk by authorizing the budget officer to hold incompatible roles in the appropriation process.  Additionally, the OIG determined that CPSC Directive 1230.1, meant to ensure compliance with OMB's A-11 Section 150 and Appendix H, is outdated and noncompliant with OMB’s requirements.  Management have indicated that are already taking the corrective action needed to correct these issues.