1. DOD Existence and Completeness Initiative
Amber Barber
March 16, 2010
NPMA 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 Office
Our 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 Readiness
DoD currently projects audit readiness in 2016
Memo from USD(C) and USD(AT&L) dated August, 2009
Demonstrate that mission-critical assets are properly accounted for in accountable systems
Marked the official beginning of the E&C efforts
Definition
Existence – “Book to Floor”
The records in our accountable systems match a physical asset
Completeness – “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) Plan
Identify assets with “quick win” characteristics
High profile; high net book value
Advanced controls and management procedures
Incorporate the “quick wins” in the Financial Improvement Plans (FIPs)
Complete auditablility assessments of the “quick win” assets by FY2011
Goals
Demonstrate assets are being properly accounted
Identify process, system, or control improvements
Move significantly toward audit readiness
Gain 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 Department
Working with OSD(C) to clarify requirements and definitions
Providing independent testing of auditability
Site visits
Testing by sampling
Aiding in the preparation of audit assertion packages
Developing “tiers” of supporting documentation
Continuing work with the FIAR committee and subcommittee
Providing feedback on FIAR plan and FIP submissions
Coordinating with OSD(C)

8. Why is the E&C effort beneficial?
There are GOOD THINGS happening in the Department that are being overlooked
Air Force has provided the first field opportunity
Each site provided access to the “quick win” assets
Supporting documentation was evaluated for completeness
ALL field sites were 100% accurate with E&C!
The methods used to prove E&C for the “quick wins” can be applied for other assets
Lessons learned will aid Enterprise Resource Plan (ERP) system development
Management can use the information from this effort to promote audit readiness and reach an unqualified opinion
All efforts lead to sustainability of successful accountability

9. Challenges DoD Definition of Inventory
“Transaction Based” approach versus traditional schedule based
Difference between inventory action and inventory report
Meeting accounting and accountability requirements
Pursue ERP solutions to ensure all requirements are addressed
Lacking clear guidance on reporting full cost, deployed asset treatment, preponderance of use
Work 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 here
Expansion of the E&C Initiatives to physical testing throughout the Department
Define the next group of assets for testing, perhaps GFP
Application of lessons learned to develop better internal controls
Cleaning 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 105
For general questions and information, visit our website:
Thank You! 11