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

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

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

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

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

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

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

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 Want to learn more about BPS? Visit us online! https://army.deps.mil/Army/cmds/USAFMCOM/BPS