1. Future Audit Environment
Green Audits and the
Future Audit Environment
Naval Audit Service
Ms. Ellen Smith
Executive Assistant Installations & Environment Audits
1 June 2011

2. We provide “assurance”
Mission
“…provide independent and objective audit services to assist Naval leadership in assessing risk to improve efficiency, accountability, and program effectiveness.”
We provide “assurance”

3. Naval Audit Service Organization
Secretary of the Navy
Under Secretary of the Navy
Auditor General of the Navy
Deputy Auditor General of the Navy
Asst. Auditor General for Plans, Policy & Resources
Asst. Auditor General for Research, Development, Acquisition, & Logistics Audits
Asst. Auditor General for Manpower & Reserve Affairs Audits
Asst. Auditor General for Financial Management & Comptroller Audits
Asst. Auditor General for Installations & Environment Audits
Asst. Auditor General for Internal Controls, Contracting, and Investigative Support
CNO/CMC Audit Interfaces
N2/N6, N4, N091
Systems Commands
CFFC
DCMC (Aviation, PPO, I&L)
CG-MCCDC
Dir. C4
Dir. Intelligence
Other Audit Interfaces
NCIS, AIO
CNO/CMC Audit Interfaces
N1, N093, N095
DCMC (M&RA, PPO)
Med Officer, Med Svcs
CG-Recruiting Command
MARRESFOR
BUPERS
NETC
CNO/CMC Audit Interfaces N8
DCMC (P&R) N6
Other Audit Interfaces
DONCIO
NETWARCOM
CNO/CMC Audit Interfaces
N3/N5, N4, N2/N6F
CFFC
CNI
DCMC (PPO, I&L)
Safety Division
NAVFAC
NAVSAFECEN
CNO/CMC Audit Interfaces
Major Claimants
CFFC
COMPACFLT
COMLANTFLT
MARFORLANT
MARFORPAC
DCMC (I&L)
Other Audit Interfaces
NCIS, AIO

4. Oversight Planning Process
SECNAV Memo, “Strengthening the Office of the Naval Inspector General and the Naval Audit Service,” directs
Preparation of an annual departmental Risk and Opportunity Assessment
Establishment of Senior Leadership Group and Oversight Planning Board
SECNAV Oversight Planning Board Charter
Align audit and inspection plans with significant risks and senior leadership concerns
Coordinate efforts of DON oversight organizations
Risk Assessment
Data call to Echelon I/II
Joint NAVIG/NAVAUDSVC effort
AUDGEN-led Oversight Plan
Collaboratively developed with senior DON leaders
Oversight Planning Board Review
SECNAV/Senior Leadership Group Approval
Gives Oversight Plan the insight and backing of DON’s most senior military and civilian leaders

5. DON Organization Secretary of the Navy Under Secretary of the Navy CNO
DON/AA
ASN (RD&A)
ASN (M&RA)
ASN (FM&C)
ASN (EI&E) GC
NCIS
DUSN (PPOI)
DUSN/ DCMO
CHINFO
OLA
CNR
CIO
JAG IG
AUDGEN
SAPRO
CNO
CMC
VCNO
ACMC
IGMC
Senior Leadership Group Member
Shore Establishment
Operating Forces
Supporting Establishment
Operating Forces
Oversight Planning Board Member

6. Sources of Audit Plan Topics
DON Risk and Opportunity Assessment
Plan Development Meetings
AAGs with DASNs, SES, and Flag Officers
AUDGEN/DEPAUDGEN/AAGs with individual OPB members
Serves as another source of risks for audit plan coverage
Also used to obtain OPB member buy-in prior to OPB
Emergent Requirements After Plan Approval

7. Going Green
Going green means to become environmentally conscious in your decisions....or at least to the best of your knowledge and within the realm of your ability...
The country is going green
The Navy is going green

8. Green / Environmental Audit
An official examination of the effects a company or other organization has on the environment, especially the damage that it causes
Serves as a means to identify opportunities to save money, enhance work quality, improve health and safety, reduce liabilities, and achieve other forms of business value
“Environmental audits can alert an organization to areas in which it does not meet current or proposed legislative requirements. Such audits can also encourage more efficient techniques and waste reduction measures." [Environmental Conservation]

9. Naval Energy Vision
The Navy and Marine Corps will lead the Department of Defense (DoD) and the nation in bringing about improved energy security, energy independence, and a new energy economy.

10. Naval Energy Priorities for Energy Reform
Energy Security
Sustaining sources
Meeting tactical, expeditionary, shore operational requirements
Protecting and delivering enough energy to meet operational needs
Energy Independence
Reducing supply disruptions
Increasing operational effectiveness
Making Naval forces more energy self-sufficient

11. SECNAV’s Energy Goals Energy Efficient Acquisition
Sail the “Great Green Fleet”
Reduce Non-Tactical Petroleum Use
Increase Alternative Energy Ashore
Increase Alternative Energy Use DON-Wide

12. SECNAV’s Energy Goals, cont.
Increase alternative energy use DON-wide
By 2020, 50% of total DON energy consumption, ashore and afloat, will come from alternative sources
Figure 1: Naval Energy Consumption by Fuel
Figure 2: Naval Petroleum Consumption Profile
Sep 2009
Source: DON’s Energy Program for Security and Independence Booklet, October 2010
Figure 1: Shore and Tactical Combined, FY 2008
Figure 2: FY 2008

13. DON Energy Objectives for FY 2011
Increase Alternative Energy DON-Wide
Increase Energy Evaluation Factors in Contract Awards
Sail the Great Green Fleet
Reduce Non Tactical Petroleum
Increase Alternative Energy Ashore

14. Military Construction
Audit Area Energy
Geothermal
Solar
Military Construction
China Lake Geothermal Power Plant
San Diego Solar PV

15. NAVAUDSVC Completed Energy Audits
Internal Controls Over DON Energy Funding and Financing Tools
Utility Energy Services Contracts
Energy Savings Performance Contracts
DON Energy Conservation Investment Program
DON Geothermal Energy Program
DON Military Constructions Projects

16. Ongoing Energy Audits DON Reporting of Fuel Consumption
Aviation (Navy & MC)
Maritime (Navy & MSC)
Expeditionary (Navy & MC)
Strategy for Considering Energy Efficient Initiatives Associated with the Guam Relocation Effort
Use of Geothermal Revenues and Geothermal Contracting Procedures

17. Audit Area: Environmental
Audits focus on identifying opportunities to strengthen controls over environmental issues, such as:
Protection of the Environment
Environmental stewardship that manages resources in support of the Navy and Marine Corps environmental issues
Safety and Occupational Health

18. NAVAUDSVC Environmental Audits
Consideration of Safety and Occupational Health Issues In Acquisition (Noise Reduction)
DON Bulk Fuel Storage Facilities
Safety and Occupational Health Assessment of DON Activities

19. Change in Audit Focus Combining Audits Narrower Scoped Audits
Quicker turn around time
Connecting Senior Leaders throughout the Navy
Quicker response to recommendations

20. QUESTIONS?