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AFLCMC… Providing the Warfighter’s Edge FIAR Status Update 17 July 2014 Randal Bowen AFLCMC/FM-FZ DSN: 785-3013 AF Life Cycle Management.

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Presentation on theme: "AFLCMC… Providing the Warfighter’s Edge FIAR Status Update 17 July 2014 Randal Bowen AFLCMC/FM-FZ DSN: 785-3013 AF Life Cycle Management."— Presentation transcript:

1 AFLCMC… Providing the Warfighter’s Edge FIAR Status Update 17 July 2014 Randal Bowen AFLCMC/FM-FZ DSN: AF Life Cycle Management Center

2 AFLCMC… Providing the Warfighter’s Edge Provide a High Level Overview of FIAR and LCMC Impacts/Status BLUF 2

3 AFLCMC… Providing the Warfighter’s Edge Overview Background Guidance/Strategy AFMC Approach Current Status/Examples Challenge(s) How You Can Help 3

4 AFLCMC… Providing the Warfighter’s Edge What is FIAR? FIAR IS: An enterprise-wide effort to: - Document and standardize business processes - Implement/enhance internal controls - Standardize data - Provide reasonable assurance that financial statements are presented fairly An initiative that involves all Functional Communities and MAJCOMs 4 FIAR IS NOT: An initiative of the current administration Just a legal requirement The sole responsibility of the FM Community

5 AFLCMC… Providing the Warfighter’s Edge … 2000… 2005… … 5 5 The CFO/FIAR Evolution Federal Financial Management Improvement Act (FFMIA) of 1996 Government Management Reform Act (GMRA) of 1994 Chief Financial Officer (CFO) Act of 1990 Government Performance and Results Act (GPRA) of 1993 Air Force produced first financial statements for FY95 Financial Improvement and Audit Readiness Focus on Balance Sheet Line Items ( ) FIAR Priorities Focused on Statement of Budgetary Resources and Existence and Completeness of Mission Critical Assets NDAA 2010 audit ready by Sep 2017 Incentives for components that have financial statements validated as ready for audit on or before September 30, 2017 SECDEF Memo GF SBR by 2014, Increased Emphasis on MCA’s VCSAF and Under SECAF letter on FIAR Unqualified Opinion All Stmts 2017 Previous audit readiness target dates 2014 Unqual. Opinion GF SBR USD(C) Refocused Efforts on Information Most Used for Decision Making DoD Only Federal Agency Without a Positive Audit Opinion USD(C) Refocused Efforts on Information Most Used for Decision Making DoD Only Federal Agency Without a Positive Audit Opinion

6 AFLCMC… Providing the Warfighter’s Edge Tone from the Top 6 “As we continue to assess our readiness and design, implement, and test corrective actions, we believe a concerted effort and laser focus will be required in order for us to meet the 2014 deadline.“ "Strengthening our financial systems, and the associated controls around those systems, remains our most critical challenge. Despite this challenge, the Air Force believes we will benefit greatly from an audit of our [Schedule of Budgetary Activity] in 2015, and further delays would place our goal of being ready for a full financial statement audit in 2017 at risk.“ Source: May 14 OSD FIAR Plan Status Report to Congress Deborah Lee James, SECAF Eric Fanning, USECAF “Transforming financial management and achieving audit readiness is the law. General Welsh and I are committed to meeting these requirements, which are critical to maintaining the trust and confidence of Congress and the American people, and which will ultimately strengthen our Air Force.” “In support of this essential effort, I directed SAF/FMP to provide monthly updates on IT system Corrective Action Plans. These IT remediation efforts are critical in establishing the trust and confidence of our stakeholders and ultimately in strengthening our Air Force.” Source: SECAF 12 May 14 Memos: FIAR Update & Improving IT Controls

7 AFLCMC… Providing the Warfighter’s Edge 7 Why is Financial Improvement & Audit Readiness Important? Comply with Laws –Requires financial statement audits –National Defense Authorization Act (NDAA) 2013 requires Statement of Budgetary Resources auditability by 30 Sep 2014 –NDAA 2010 requires full financial statement auditability by 30 Sep 2017 Verify Correct Allocation of Funds –Verify that all resources are allocated to approved mission priorities in a legal manner Make Better Use of Resources –Provide better information for timely, informed decision-making and identify funds for other purposes Understanding the value proposition –extends beyond auditable financials – accountability, cost control, operational improvement Increase Public Trust –Reassure the public and Congress that the Air Force is a good steward Good audit results improve an organization’s creditability

8 AFLCMC… Providing the Warfighter’s Edge DoD Four Wave Strategy Wave 3: (CYE 2015) Asset Accountability Book-to-Floor/Floor-to-Book Inventory Proof of Ownership of Assets Wave 4: (FYE 2017) Full financial statement audit Incl. AF Working Capital Funds Wave 1: (Done!) Focus on the flow of money from receipt by Treasury to distribution to the Services Wave 2: (FYE 2014) Life-cycle of funds (commit, obligate, spend) Audit trail for all funds 8 Current Position

9 AFLCMC… Providing the Warfighter’s Edge Organized to focus on goals/objectives HQ AFMC Strategic Plan AFMC FIAR Governance Structure AFMC Learning/ Training Model Commander’s Report Card Wins/ Accomplishments 9 How Did We Adapt? SAF/FMP HQ AFMC Center Base Vision, Leadership, Oversight, Accountability, Assertion Leadership, Implementation Direction, Readiness Guidance Development, Issue Resolution, Consolidation Plan Development, Issue Identification, Quality Control Plan, Test Execution, Provide Sample Data Commander Involvement

10 AFLCMC… Providing the Warfighter’s Edge HQ AFMC Strategic Plan AFMC Priority: Demonstrate Cost Effectiveness Across All Mission Areas Goals: Demonstrate Cost Effective Mission Execution Achieve and Maintain Financial Accountability/ Auditability (3.2.1.) Stmt. of Budgetary Resources Mission Critical Asset Accountability Full Financial Statements IT Controls 10

11 AFLCMC… Providing the Warfighter’s Edge Chair: AFMC/FM, Senior Financial Advisor Members: Center & 2-Ltr FIAR OPRs Chair: AFMC/CC Members: AFMC/CV/CA, Center CC/CV/CA & HQ Directors/Deputies Chair: AFMC/FM, Director Members: HQ Directors/Deputies & Ctr FMs AFMC Council Ctr/HQ Staff Council Prep FIAR Team FIAR Division (HQ AFMC/FMI) Execution arm of the FIAR Team; oversees and coordinates audit readiness initiatives across the Command AFMC FIAR Governance Structure Enduring Requirement 11

12 AFLCMC… Providing the Warfighter’s Edge SBR Timeline As of 22 Jul 14 12

13 AFLCMC… Providing the Warfighter’s Edge Train to a Standard Compliance Learning/Training Model Phase Before Instruction Before and During Instruction Instruction Check for Understanding Think about and use what you learn to motivate employees on “Why” and “How” we change the norm Reach consensus of “Right” by auditing standard Write Curriculum and Decide Objective of Training Random Sampling Analyze Results for any Trends Grade Provide Feedback and Training Update Training Based on Results Start An Instructional Sequence on Assessable Area Add to Base/Center Quality Assurance Programs as a Quality Assurance Review Add to IG Unit Effectiveness Inspection as a Focus Area Recycle Sustainment Phase End Instruction Sequence 95% Assurance Achieved MAJCOM Collaboration with AFAA 13

14 AFLCMC… Providing the Warfighter’s Edge Commander’s Report Card SBR As of 22 Jul 14 14

15 AFLCMC… Providing the Warfighter’s Edge 15 GOAL 95% AFLCMC AFRLAFSCAFTC Civilian Pay Testing Results Nov 13-Apr 14 AFNWC AFMC Lower scores due primarily to missing documentation & incomplete delegation of authority forms (DD 577s)

16 AFLCMC… Providing the Warfighter’s Edge Civ Pay Checklist 1A. Verify supervisor approved any additional hours worked (comp time earned, overtime, etc.) 1B. Request for additional hours includes pay pd, justification, name, grade, date, time, & number hrs requested for each individual. 1C. Verify line of accounting data is present on AF Form 428 1D. Verify line of accounting data has been certified 1E. Verify AF Form 428 is retained in accordance with records retention regulations. 2A. Verify accounting data is reviewed by resource manager and signed by a supervisor. 2B. AF IMT 3821 retained in accordance with retention regulations 2C. AF IMT 3821 contains effective date, name, office symbol of employee. 3A. Verify accounting classification in DCPS agrees with the AF IMT B. Employee's time and attendance is properly recorded in DCPS. 4A. Completed DD B. Name, title, organization of appointing authority. 4C. Effective date of appointment. 4D. Name, title, organization, address and phone number of appointee. 4E. Block 13 appoints appointee to certify time and attendance. 4F. Must be signed and dated by both the appointing authority and appointee. 4G. Provided DD 577s match signatures on 428s, leave requests and time cards. 5A. Leave taken is properly approved by the employee's supervisor (signed time card). 5B. Date, time, type and number of hours requested are on the leave request. 5C. Verify that leave request was retained two weeks after pay period. 6A. Supervisor has approved time and attendance action (annual leave, travel comp or comp time). 6B. Supporting documentation is present for time and attendance other than regular hrs (credit hrs, travel comp, over time, etc.). 7A. Time and attendance is annotated on time card. 7B. Employee signs for any changes to timecard 7C. Supervisor signs time card (digitally or hand written). 7D. Verify timecard is retained in accordance with retention regulation. 16

17 AFLCMC… Providing the Warfighter’s Edge DD 577 Example 17 Effective Date Approval Date (CAC) Acknowledgement Date (CAC) Approval Date (Stated)

18 AFLCMC… Providing the Warfighter’s Edge 18 MCA Timeline As of 23 Jun 14 = AFMC Owned

19 AFLCMC… Providing the Warfighter’s Edge Commander’s Report Card MCA Overall Readiness with IT Status 19

20 AFLCMC… Providing the Warfighter’s Edge GFE Commander’s Report Card Overall Commander’s Status ID contracts with GFE (initial look) Centers submit spreadsheets to A4, then A4 to HAF (suspense – Feb 14) Correct/Populate missing data Task contractors to populate IUID Registry IAW contract requirements/2012 memo Establish Baseline of GFE Contracts/Assets ID contracts with GFP that do not include required clauses and attachments Update contracts to add required clauses and attachments Task contractors to populate IUID Registry with GFE data with “corrected” contracts Establish metric(s) for monitoring contractors inputs into IUID Registry Sustain Baseline of GFE Contracts/Assets GFE Task/Milestone AFMCAFLCMCAFNWCAFRLAFSCAFTC 20

21 AFLCMC… Providing the Warfighter’s Edge Status/ Summary of GFE Spreadsheets as of 11 Jun 14 LeadCenter Total spreadsheets A4RM received Revision Required Percent Requiring Revision Number of lines of data reviewed* A4RM252288%77,298 PK21 100%9,347 PK %1,413 PK4149.8%8,901 PK %38, %135, *Number of lines of data reviewed* estimated, spreadsheets my have spaces between line items, or contractor formatted data sheets +/- 10 to totals

22 AFLCMC… Providing the Warfighter’s Edge GFE Contract Issues ID of GFE contracts requires matching input from FPDS-NG, Center SOCCER responses, & IUID Registry –Review reveals miscoding / low confidence in automated data — requires manual verification of 750+ AFMC contracts –Developing path to correct errors & to clarify base support vs GFE Numerous contracts will require clause updates –Numerous “GFE” contracts validated to date do not include all six required clauses Some awarded prior to current regulation; some contracts don’t include GFE –CONWRITE revised to pre-select all GFP clauses for Cost, T&M contracts – and, when applicable, FFP SPS & ACPS already contained this logic –Manual review of Cost-Type contracts required PK/AQC/AQX to set burn-down plan, metrics for contract updates –Top USAF Programs? Complexity? Period of performance? Dollar value? GFE value? Contract Type? 22

23 AFLCMC… Providing the Warfighter’s Edge Challenges to Meeting Our Goals Time –2014 is here for AF General Fund Statement of Budgetary Resources, 2017 is not that far away for the rest…Time is of the essence Automated Systems Environment –Need to implement process and IT mitigating controls to offset legacy system weaknesses –Need to ensure Systems Controls (FISCAM) and Business Enterprise Architecture (BEA) compliance 23

24 AFLCMC… Providing the Warfighter’s Edge How can you help? Your Involvement –Look at what you are doing Ensure the documents are correct before you sign them Will an person outside the organization understand the description of what you are buying Is the LOA complete and correct. Modifications changing Line of Accounting muddies the audit trail and causes rework. –Perform Quality Reviews as required in your functional guidelines –Answer data calls quickly with all required documentation, Auditors only give us 3-5 days to reply WE WILL WIN! 24

25 AFLCMC… Providing the Warfighter’s Edge Call to Action “Being able to audit this Department’s finances is a high priority for me and for the Department’s senior leadership. It should also be a high priority for each of us.” Chuck Hagel “If we can but prevent the government from wasting the labours of the people, under the pretence of taking care of them, they must become happy.” Thomas Jefferson

26 AFLCMC… Providing the Warfighter’s Edge  Product  Deliver Cost Effective Acquisition Solutions  Deliver Affordable and Effective Product Support  Process  Launch High Confidence Sustainable Programs  Standardize and Continuously Improve Center Processes  People  Develop and Place Right Person at Right Time  Assure a Safe, Secure, and Quality Work Environment 26 DELIVER TO COMMITMENTS Acquire and Support War-Winning Capabilities

27 AFLCMC… Providing the Warfighter’s Edge 27


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