Presentation on theme: "DOD Existence and Completeness Initiative"— Presentation transcript:
1 DOD Existence and Completeness Initiative Amber BarberMarch 16, 2010NPMA National Capital Area Conference
2 Who We Are Property & Equipment (P&E) Policy Office Our Mission: Office of the Under Secretary of Defense, Acquisition, Technology & Logistics(OUSD, AT&L), Acquisition Resources & Analysis (ARA),Property & Equipment (P&E) Policy OfficeOur Mission:To establish policies and support business process development that enables military services and defense agencies to provide more accurate and reliable information to senior leaders to support management decisions at an enterprise-level.
3 Overview What is “Existence and Completeness”? What is the intent?How is the DOD approaching this effort?What support can each Military Service expect?Why is the E&C initiative beneficial?What we have done so far and the results!
4 What is Existence and Completeness? The President’s Management Agenda (FY2009)Increase from 13 to 21 the number of agencies earning clean audit opinions and reduce the number of repeat material weakness to 10 percent.Congressional Interest in Audit ReadinessDoD currently projects audit readiness in 2016Memo from USD(C) and USD(AT&L) dated August, 2009Demonstrate that mission-critical assets are properly accounted for in accountable systemsMarked the official beginning of the E&C effortsDefinitionExistence – “Book to Floor”The records in our accountable systems match a physical assetCompleteness – “Floor to Book”Each physical asset has a record in an accountable system
5 How is the DOD approaching this effort? Financial Improvement and Audit Readiness (FIAR) PlanIdentify assets with “quick win” characteristicsHigh profile; high net book valueAdvanced controls and management proceduresIncorporate the “quick wins” in the Financial Improvement Plans (FIPs)Complete auditablility assessments of the “quick win” assets by FY2011GoalsDemonstrate assets are being properly accountedIdentify process, system, or control improvementsMove significantly toward audit readinessGain public confidence
6 DoD Assets Quick Win Assets by Service Quick Win data is based on Net Book Value data available in Capital Asset Management System-Military Equipment and the latest report from USAF. This does not include modifications or group and composite values which are included in the DoD Financial Statement.6
7 Support to the Department P&E Policy has committed to aiding the DepartmentWorking with OSD(C) to clarify requirements and definitionsProviding independent testing of auditabilitySite visitsTesting by samplingAiding in the preparation of audit assertion packagesDeveloping “tiers” of supporting documentationContinuing work with the FIAR committee and subcommitteeProviding feedback on FIAR plan and FIP submissionsCoordinating with OSD(C)
8 Why is the E&C effort beneficial? There are GOOD THINGS happening in the Department that are being overlookedAir Force has provided the first field opportunityEach site provided access to the “quick win” assetsSupporting documentation was evaluated for completenessALL field sites were 100% accurate with E&C!The methods used to prove E&C for the “quick wins” can be applied for other assetsLessons learned will aid Enterprise Resource Plan (ERP) system developmentManagement can use the information from this effort to promote audit readiness and reach an unqualified opinionAll efforts lead to sustainability of successful accountability
9 Challenges DoD Definition of Inventory “Transaction Based” approach versus traditional schedule basedDifference between inventory action and inventory reportMeeting accounting and accountability requirementsPursue ERP solutions to ensure all requirements are addressedLacking clear guidance on reporting full cost, deployed asset treatment, preponderance of useWork with USD(C), DOD Components, and Accounting and Auditing Policy Committee (AAPC) for continuous Federal-wide improvements and clarifications
10 Where do we go from hereExpansion of the E&C Initiatives to physical testing throughout the DepartmentDefine the next group of assets for testing, perhaps GFPApplication of lessons learned to develop better internal controlsCleaning the books of errata and fine tuning the financial statements
11 For general questions and information, visit our website: Questions? Comments?Contact us at:, ext 105For general questions and information, visit our website:Thank You!11