The conversation around internal controls is shifting in today’s rapidly evolving public sector landscape. No longer seen as mere compliance hurdles, robust internal controls are emerging as a strategic asset- one that can transform operational discipline into a true competitive advantage.

At GME Enterprises, we believe that internal controls are the cornerstone of trust, operational excellence, and public value. Nowhere is this more evident than in Virginia, a state celebrated for its fiscal responsibility and transparent governance. The Agency Risk Management and Internal Control Standards (ARMICS) framework is not just a regulatory requirement, it is a blueprint for leadership and innovation in government.

ARMICS – Why it Matters

ARMICS, developed by the Virginia Department of Accounts, sets the standard for internal controls across state agencies. Rooted in the COSO (Committee of Sponsoring Organizations) framework, the program ensures that agencies:

• Operate efficiently and effectively,
• Provide reliable financial reporting, and
• Comply with all applicable laws and regulations.

At its core, ARMICSexists to ensure that every state agency contributes to the Commonwealth’s strong financial stewardship, high-performing operations, and trusted public service.

Virginia is one of only a few states with an AAA bond rating from all three major credit agencies. This rating allows the Commonwealth to borrow at lower interest rates, saving millions in taxpayer dollars. It reflects Virginia’s strong financial position, disciplined budget management, and — notably — its robust system of internal controls. By requiring agencies to evaluate and strengthen their control environments annually, ARMICS assures stakeholders—from rating agencies to taxpayers—that Virginia is diligently managing its operations and finances.

By integrating internal controls into daily operations, ARMICS strengthens agency performance and supports broader statewide goals.

Internal Controls: The Engine of High-Performing Government

Internal controls are critical to the DNA of effective organizations. When embedded into daily operations, controls such as segregation of duties, financial reconciliations, and secure data management do more than safeguard assets- they foster a culture of accountability and continuous improvement and actively contribute to the Commonwealth’s reputation for excellence.

From Compliance to Competitive Edge

The true value of internal controls lies in their ability to deliver benefits that extend far beyond regulatory compliance:

• Building Public Trust: Transparent and reliable operations are the foundation of public confidence. When agencies demonstrate integrity through strong controls, they reinforce the Commonwealth’s status as a best-managed state.
• Protecting Public Resources: Effective controls mitigate fraud, waste, and mismanagement, ensuring that taxpayer dollars are used wisely. This fiscal discipline is a key factor in Virginia’s coveted AAA bond rating, which translates to millions in savings for taxpayers.
• Enabling Reliable Reporting: Accurate, timely financial data is critical for informed decision-making and clean audits. Internal controls underpin Virginia’s track record of transparent budget processes and financial stewardship.
• Driving Proactive Risk Management: ARMICS institutionalizes risk awareness, encouraging agencies to anticipate and address challenges before they escalate. This forward-thinking mindset is essential for resilience and continuity in public service.

Transforming Compliance into Strategic Value

At GME Enterprises, we empower agencies to turn compliance into a catalyst for operational excellence. Our approach is hands-on and strategic:

• We conduct comprehensive risk assessments to identify vulnerabilities and opportunities.
• We help design and document internal control systems that are both robust and practical.
• We train teams to sustain a proactive, risk-aware culture.
• We guide agencies through the ARMICS process, ensuring not only compliance but also meaningful performance gains.

By viewing internal controls as a strategic asset, organizations can set new standard for public sector leadership. Compliance is not the finish line; it is the foundation for innovation, trust, and long-term success.

The Future of Public Sector Excellence

The connection between strong internal controls and Virginia’s reputation as a best-managed state is no accident- it is the result of deliberate, disciplined leadership and a commitment to continuous improvement. As the public sector faces new challenges and rising expectations, those who embrace internal controls as a source of competitive advantage will be best positioned to lead. By embedding these principles, agencies can move beyond compliance, building a legacy of trust, performance, and leadership for the Commonwealth and beyond.

At GME is proud to help agencies realize the full strategic power of internal controls-and to support Virginia’s mission to remain a national leader in good governance. Let’s work together to transform compliance into a platform for excellence, resilience, and public trust.

Let’s Build the Future of Government Together

GME helps agencies transform their compliance efforts into meaningful improvements by reducing risk, increasing operational clarity, and aligning internal processes with strategic outcomes. We believe in the power of good governance, and we’re proud to support Virginia’s mission to remain the best-managed state in the nation.

How We Can Help

GME Enterprises specializes in helping agencies and organizations navigate the ARMICS process with confidence. Our team of experienced consultants provides tailored advisory services to:

• Conduct thorough risk assessments
• Evaluate and strengthen internal control systems
• Document ARMICS compliance clearly and efficiently
• Train teams on sustainable internal control practices

Whether you’re preparing for an annual ARMICS certification, facing a complex control environment, or seeking to build a proactive risk management culture, we’re here to support you every step of the way. Our hands-on, strategic approach ensures your agency meets ARMICS standards and uses them as a tool for long-term performance and accountability.

Let’s work together to turn compliance into a competitive advantage.