Danger, Danger! High Voltage How the Coast Guard Reshaped C4IT System Accounting and Management

Summary I will highlight how the Coast Guard fundamentally altered its view and management of command, control, communications, computers, and information technology (C4IT) systems to enhance auditability, accounting, accountability, and configuration management. The discussion will center on the shift in management, valuation procedures, and the impact to improvements, technology refresh, and useful lives.

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Problem (root cause analysis) Too hard Don’t understand property accountability requirements Don’t have time Don’t care Lack of command interest Poor tools/guidance provided to C4IT community

Solution Treat C4IT assets like other major CG assets

Definition: HLA Two or more interconnected components and/or training aids that that may be physically separated when in operation that function as a unique asset that perform a specific operational function by processing and/or presenting information from the components and/or delivering information to a user base

Definition: Component For Electronics HLAs, any physical entity used to affect the electrons or their associated fields in a manner consistent with the intended function of the electronic system. Components are generally intended to be connected together. Components are maintained in FLS or other CG-6 approved logistics system

Methodology 1 Develop enrollment framework and new property definitions Conduct pilot enrollment Revise policies and procedures based on lessons learned from pilot enrollment Enroll other sites in person to ensure proper communications of property policy and procedural changes Gather valuation and DIS supporting doc

Methodology 2 Review and approval of all valuation and DIS documentation by both C4IT and CFO community Entry of HLAs into Financial System of Record Entry of HLAs into Configuration Mgmt System Sustainment of Configuration Mgmt by C4IT Development of Inventory procedures

Milestones 1 Full 100% component-level inventory for all electronics at C4IT commands, training commands, and other major commands Component level valuation documentation summated to determine HLA valuation (missing integration, development, and overhead costs, rational approach due to SFFAS 35 requirement for a reasonable estimate) HLA level DIS documentation, not individual components

Milestones 2 Build out sustainment P&P – configuration mgmt enrollment process guide, OFA enrollment process guide, Cap Improvement vs Technical Refresh decision matrix, procurement checklist updates, configuration management guidance, update inventory procedures for HLAs Configuration Management System and Finacial System of Record correct = Financial Statement management assertions correct Operational community (C4IT) good CFO community good

Timeline HLA Enrollment Process – Spring 2013 through September 30, 2014 HLA Enrollment Site Visits – Spring 2013 – Winter 2014 HLA Alternate Valuation and Date-in-Service Research – conclusion of local site visit – May 1, 2013 C4IT community review of Capitalized HLA Alternate Valuation and DIS documentation and enrollment packages – May 1 – May 30, 2014 CFO community review of Capitalized HLA enrollment packages – June 1 – June 30, 2014 C4IT community review of Non-Capitalized HLA enrollment packages – June 1 – Aug 1, 2014 CFO community review of Non-Capitalized HLA enrollment packages – Aug 1 – Aug 30, 2014

Current Status 31,696 components 1706 HLAs – Operational HLAs = 1506 – Internal HLAs = 200 Total Historical Cost = $314M Range of DIS =

Contact Info for CG Audit Remediation Division Property Team CDR Colin Campbell Chief, Audit Remediation Division, Veronica Christian Property Remediation Team Lead, LT Joshua Zike Personal Property Remediation Team Lead,

Questions