1. Accountability & Audit Readiness: Sustaining Army’s Strength FY 2015 2 nd Quarter Teleconference Office of the Assistant Secretary of the Army (Financial Management & Comptroller) (OASA(FM&C)) Managers’ Internal Control Program January 7, 2015

2. Accountability & Audit Readiness: Sustaining Army’s Strength  Roll Call  Opening Remarks  FY 2015 Schedule of Events  MICP Survey on AKO  Current Audit Readiness Engagements  Questions/Comments Agenda 1

3. Accountability & Audit Readiness: Sustaining Army’s Strength Opening Remarks 2

4. FY 2015 SchFY2015 Schedule of Events CompletedDateEventOPR √ 9 Oct 20141 st Qtr Senior Level Steering Group/Senior Assessment Team (SLSG/SAT)SLSG √ 21 Oct 20141 st Qtr Teleconference with Reporting OrganizationsSAFM-FO √ 7 Jan 20152 nd Qtr Teleconference with Reporting OrganizationsSAFM-FO 15 Jan 20152 nd Qtr SLSG/SATSLSG 2 Apr 20153 rd Qtr Teleconference with Reporting OrganizationsSAFM-FO 9 Apr 20153 rd Qtr SLSG/SAT SLSG 15 May 2015 Annual statements from Army commands (ACOMs), Army service component commands (ASCCs) and direct reporting units (DRUs) due to OASA(FM&C) Commands 29 May 2015Annual statements from HQDA Principal Officials due to OASA(FM&C) HQDA Principal Officials 4

5. FY 2015 SchFY2015 Schedule of Events CompletedDateEventOPR 18 Jun 2015Draft Army statement of assurance delivered to SLSG/SAT members for coordination SAFM-FO 26 Jun 2015SLSG/SAT member comments on draft Army statement due to OASA(FM&C)HQDA Principal Officials 1 Jul 20154 th Qtr Teleconference with Reporting OrganizationsSAFM-FO 9 Jul 20154 th Qtr SLSG/SATSLSG 21 Jul 2015Release final draft Army statement thru DASA(FO) to SecArmy for signatureSAFM-FO 24 Aug 2015Final signed Army statement delivered to the Secretary of DefenseSAFM-FO 4

6. Accountability & Audit Readiness: Sustaining Army’s Strength  Purpose/Objective – Understand specific areas of concern from all levels of MICP. – Integration of Audit Readiness / MICP feedback – Elected to conduct anonymous survey Survey on website indicates it can be taken multiple times Statement cannot be removed when choosing anonymous survey  Survey will be available until COB Friday, January 16.  Results will be compiled and analyzed for further action.  Potential Working Group may be formed to assist with action plans. MICP Survey on AKO 5

7. Accountability & Audit Readiness: Sustaining Army’s Strength Current Audit Readiness Engagements 6

8. Accountability & Audit Readiness: Sustaining Army’s Strength  Statement of Budgetary Resources (SBR) activity for ONLY current year (FY15) transactions and appropriations. – SBA Audit does not include Beginning Balances. – Transactions/Appropriations from 1 October 2014 – 30 September 2015.  Contract was awarded in December to KPMG – Entrance conference held on 18 December 2014.  Audit Phase / Timing – Planning: December 2014 – March 2015 – Internal Control: April 2015 – October 2015 – Testing: April 2015 – October 2015 – Reporting: October 2015 – November 2015 FY15 Schedule of Budget Activity (SBA) Audit 7

9. Accountability & Audit Readiness: Sustaining Army’s Strength  Operating Materials and Supplies (OM&S) – Army munitions  Real Property – General Fund and Army Working Capital Fund  DoDIG is conducting both engagements – Work started in November 2014 – Site visits and testing will be conducted through March 2015  Army expects final reports for both engagements by May 2015 Existence & Completeness (E&C) Examinations 8

10. Accountability & Audit Readiness: Sustaining Army’s Strength Questions/Comments 9