1. Achieving Audit Success
How USAFMCOM & DFAS Support This Goal Together
ASMC Indianapolis Chapter Professional Development Event
U.S. Army Financial Management Command (USAFMCOM) Financial Audit & Compliance (FAC) Directorate
16 AUG 2017

2. Agenda How will we achieve audit success together?
Business Process Standardization
Audit Priorities
Managers’ Internal Control Program
Workforce Readiness
Key Takeaways

3. How will we achieve audit success together?
The Army has defined four critical areas that will help us achieve and sustain full financial statement audit
USAFMCOM is working with service providers, including DFAS, to continue to drive us closer to this goal
Ensuring we’re prepared!
Employing change management strategies
Developing training
Building skillsets
Standardizing 17 financial management processes
Improving auditor understanding of Army and service provider business
Reducing the audit sample size
MANAGERS’ INTERNAL CONTROL PROGRAM
MICP is the backbone of auditability
Providing an Enterprise Risk Management (ERM)-based framework to comply with FMFIA & OMB Circular A-123
Audit is the norm!
Resolving audit dealbreakers
Addressing new deficiencies, as they arise
Talking Points
Collaboratively working towards helping auditors understand complexities of Army business processes
Coordinating across Army to establish accountability for implementing corrective actions and provide supporting documentation
Synchronizing with service providers to overcome challenges and provide necessary audit support

4. What We’ve Accomplished
Where We’re Headed
Sustainment - establishing the BPS Change Control Lifecycle, including the Change Control Board
Developing the Army Process Portal, housing all BPS documentation and interactive guides
Army Process Portal
Unable to execute repeatable and auditable business processes
Aged assertion packages
Lack of auditor confidence
Where We Started
Funds Receipt and Distribution (FRD) was signed into policy, effective 13 JUN 2017
Documented 69 processes across four process standards
Established the BPS Council to increase communication and transparency
Increased collaboration with DFAS, leveraging iControl and key control matrices developed by DFAS
FRD
FBwT
DISB
CIVPAY
What We’ve Accomplished

5. How USAFMCOM is Currently Supporting
The Audit Priorities
Universe of Transactions and Reconciliations
Posting Logic Improvement
Fund Balance with Treasury
Information Technology General Controls
Journal Vouchers
Budget Execution and Process Improvement
Existence and Completeness
Asset Valuation
Environmental and Disposal Liabilities
Next Steps
Collaborating with Army stakeholders to support posting logic improvement, standardizing GFEBS transaction codes
Supporting budget execution and process improvement
Where We Started
Army uses a project management framework with executive oversight to drive resolution of audit dealbreakers and priorities
Executive Governance Board
Business Mission Area Champion
Supporting an interim Universe of Transactions (UoT) and Reconciliations, to prove existence and completeness and enable audit sampling
Documenting Fund Balance with Treasury (FBwT)
Partnering with DFAS to execute supportable journal vouchers
How USAFMCOM is Currently Supporting

6. MANAGERS’ INTERNAL CONTROL PROGRAM
Where We’re Headed
Army will incorporate ICOFR, ICOFS, and ICONO, using an ERM framework
FNQ will work with the MICP Program Manager to sustain the controls, resulting from:
CAP validation, ensuring our remediation efforts appropriately address notices of findings and recommendations
Assessing and strengthening internal controls, such as the JRP initiative, Army’s version of the Tri-Annual Review
The Managers’ Internal Control Program (MICP) did not equal Audit Readiness
MANAGERS’ INTERNAL CONTROL PROGRAM
Where We Started
What We’ve Accomplished
To improve Army’s control environment, USAFMCOM established the Field Network Quality Division (FNQ), focusing on three areas:
Joint Reconciliation Program (JRP) evaluation
Corrective Action Plan (CAP) validation
BPS adherence
Army is currently evaluating information technology systems to improve MICP

7. Where We’re Headed Where We Started Why It’s Important
Surveying audit readiness knowledge gaps and identifying future training needs
Developing training and communication
Accessibility to business process standard documentation through the Army Process Portal
DoD is learning how to support a full financial statement audit which will require:
Change management
New competencies and skillsets
Training
Where We Started
Knowing how to prepare for and interact with auditors is critical for audit success
Training is needed on:
New business process standards
Internal controls
Audit, finance, and accounting
Informing the workforce on the controls they are expected to perform
Why It’s Important

8. MANAGERS’ INTERNAL CONTROL PROGRAM
Key Takeaways
How can you help?
Leaders, we need your tone from the top!
Promote employee engagement (BPS, training, etc.)
Financial Management employees, you are critical in supporting audit success!
You can help by:
Proactively understanding and being curious about how your activities impact the audit
Contributing your thoughts at BPS workshops and becoming familiar with process standards as they are published
Following your standard operating procedures and retaining key supporting documents
Visiting the BPS SharePoint site for more information on developmental assignments at USAFMCOM
MANAGERS’ INTERNAL CONTROL PROGRAM
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