MIC Overview for new DASN - PowerPoint PPT Presentation

Loading...

PPT – MIC Overview for new DASN PowerPoint presentation | free to download - id: 171cb-NWJkN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

MIC Overview for new DASN

Description:

Proposed MIC / ICOFR Process for Certifications ... NCIS. OPPA. NAVIG. CHINFO. DON CIO. JAG. AAUSN. ONR. NAVSEA. NAVSUP. NAVAIR. CFFC. PACFLT. SPAWAR ... – PowerPoint PPT presentation

Number of Views:271
Avg rating:3.0/5.0
Slides: 33
Provided by: michael236
Category:
Tags: dasn | mic | ncis | new | overview

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: MIC Overview for new DASN


1
Department of the Navy Sustaining the
Success! Mike Moreau ASN(FMC) FMO 27 May 2009
2
Agenda
  • Guidance
  • Approach to Internal Control Testing (Goals and
    Considerations)
  • Current MIC Process for Certifications
  • Proposed MIC / ICOFR Process for Certifications
  • Approach to Internal Control Testing (Roles and
    Responsibilities)
  • Command Level Testing Example - BUMED
  • Summary

3
Guidance
  • Federal Managers Financial Integrity Act (FMFIA)
    of 1982
  • Requires the establishment of internal accounting
    and administrative controls
  • Requires agencies to annually report on the
    effectiveness of internal controls
  • OMB Circular No. A-123 (revised 2004)
  • Provides guidance to managers on establishing and
    reporting on internal controls
  • Revised to include Appendix A, outlining the
    responsibility for internal controls over
    financial reporting (ICOFR)
  • DoDI 5010.40 Managers Internal Control Program
    Procedures
  • Outlines two separate processes for annual
    reporting of control deficiencies
  • Over Non-Financial Operations
  • Over Financial Reporting
  • SECNAVINST 5200.35E
  • Provides MIC policy, roles and responsibilities
    to the DON components
  • Establishes the DON Senior Assessment Team (SAT)

4
Approach to Internal Control Testing
  • Goals
  • Maintain managements reasonable assurance for
    departmental internal controls over financial
    reporting
  • Support the preparation of the Annual Statement
    of Assurance and Quarterly Financial Statement
    Certifications
  • Foster accountability for internal controls over
    financial reporting at the command level
  • Considerations
  • Current level of standardized department-level
    process and controls documentation
  • Availability of resources at the command and
    department levels
  • Value derived at commands from active
    documentation of financial processes and testing
    of internal controls

5
Three Distinct, but Related, Processes
Senior Assessment Team
Certification Over Financial Reporting
Certification Over Non-Financial Ops
ASN(FMC) FMO
2
1
3
MAUs
ASN(FMC) FMO NAVAUDSVC
DON Financial Improvement Program (FIP) Data /
Assertions
Third Party Audit or Inspection Findings
6
1. MIC Bottom-Up Self-Reporting
  • DON Major Assessable Units (MAUs) report directly
    to the SECNAV or Under Secretary
  • Certification statements attest a senior leaders
    reasonable assurance that key business process
    controls are in place and operating effectively
  • Controls ensure the organization is capable of
    meeting its mission objectives and providing
    accurate financial information
  • Material Weaknesses are those control
    deficiencies impacting mission capability or
    accuracy of financial information

DON SOA
18 MAUs
7
3. Internal Controls Over Financial Reporting
  • Approach
  • Commands that are Budget Submitting Organizations
  • Develop or use existing test plans to assess
    effectiveness of internal controls
  • FMO compiles Navy test results and findings, for
    review by OUSD(C)
  • USMC provides separate inputs, but results are
    included in the DON SOA
  • Identified ICOFR Material Weaknesses are included
    in the DON SOA
  • Material Weakness more than a remote likelihood
    that a material financial misstatement will
    prevent audit readiness

8
New MIC / ICOFR Reporting (After the FIP is gone)
Senior Assessment Team
Certification Over Financial Reporting
Certification Over Non-Financial Ops
ASN(FMC) FMO
1
MAUs
2
ASN(FMC) FMO NAVAUDSVC
Third Party Audit or Inspection Findings
9
Certification Statements
AAUSN
ONR
ASN(RDA)
NAVIG
SECRETARY OF THE NAVY
OLA
OPPA
ASN(MRA)
JAG
UNDER SECRETARY OF THE NAVY
ASN(IE)
NCIS
OSBP
DON CIO
ASN(FMC)
AUDGEN
OGC
CHINFO
CNO
CMC
NAVSEA
NAVSUP
SPAWAR
BUMED
NAVFAC
ONI
BUPERS
CFFC
NAVAIR
PACFLT
CNIC
FSA
SSP
RESFOR
SPECWAR
COMSC
10
Certification Statements
AAUSN
ONR
SECRETARY OF THE NAVY
UNDER SECRETARY OF THE NAVY
CNO
CMC
NAVSEA
NAVSUP
SPAWAR
BUMED
NAVFAC
ONI
BUPERS
CFFC
NAVAIR
PACFLT
CNIC
FSA
SSP
RESFOR
SPECWAR
COMSC
11
Certification Statements
SECRETARY OF THE NAVY
UNDER SECRETARY OF THE NAVY
MIC Certification
ICOFR Certification
ICOFR Certification
CNO
ICOFR Certification
BUMED
BUPERS
CNIC
12
Testing - Department Level
  • FMO
  • Administer the testing program
  • Work with Naval Audit Service to determine which
    segments / controls to test
  • Review command-level test plans / results
  • Prepare OUSD(C) ICOFR Deliverables
  • Naval Audit Service
  • Review command-level testing to determine if it
    has been done properly
  • Perform control testing in coordination with FMO
    using samples representing the DON universe of
    transactions

13
Testing - Command Level
  • DON Commands
  • Implement a testing program for ICOFR, based on
    process documentation and initial test results
    for all asserted segments
  • Maintain and provide source documentation to
    assist department-level testing efforts

14
Navy Medicine Command Level Testing
Implementing Navys Vision of Test for
Success
  • May 27, 2009

15
Purpose and Objectives
  • Provide overview of Medicines Validation and
    Command Level Testing (CLT) efforts.
  • Demonstrate how Navy Medicine integrates
    reporting validation and testing results with
    Managers Internal Control Program (MICP)

16
The Path to Financial Audit Readiness
17
What is Command Level Testing?
  • Internal Controls Testing by Hospital/Activity
    personnel (Deck Plate)
  • Testing platform built from ongoing OMB A-123
    Appendix A Discovery Validation efforts
  • Provide fact-based assurances on each Commands
    internal control efforts
  • Reviewing assigned processes
  • Pulling and Testing documentation for selected
    sample transactions
  • Documenting Results
  • Report up the chain

Annual SoA
Region
Quarterly FS
BUMED
18
Why Command Testing of Internal Controls?
  • Determines if processes are functioningeffectivel
    y
  • Validates that controls are in place to
    safeguard resources
  • Provides reasonable assurance of compliance with
    applicable laws and regulations
  • Enhances reliability of financial reporting

19
Immediate Questions on Testing
  • Every Transaction at my Hospital, BMC, etc?
  • Answer OMB requires that we demonstrate internal
    controls over all processes that tie to Finances.
    Many Transactions will be included but not all.
  • How far back in time will we go for Testing?
  • Answer No more than 12 months.

20
Immediate Questions on Testing
  • What systems are included?
  • Answer STARS-FL, DTS, FASTDATA, etc.
  • What documentation?
  • Answer System screen shot(s), Active Document
    List, transaction listings, and policies and
    procedures
  • Who decides the scope, i. e. How Much?
  • Answer The BUMED SAT, working in conjunction
    with guidelines established by DON and OUSD ( C ).

21
What Kinds of Things are We Looking For?
  • Test specific controls in designated processes
    related to Assertion Standards
  • Approvals (e.g. Appropriate signature/authorizatio
    n of funds)
  • Separation of Duties (e.g. person/activity
    ordering property different from those receiving)
  • Reviews/Checks/Reconciliations (e.g. Obligation
    Balances within official accounting system)
  • Adherence to Policy and Guidance (e.g. FMR, JTR,
    SOPs etc.)
  • Maintenance of Documentation (e.g. Required
    retention, either hard or soft copy)

22
Command Level Testing Process Flow
23
Command Level Testing Process Flow (cont)
Q4 Cert. Statement
Statement of Assurance
Q2 Cert. Statement
Q3 Cert. Statement
  • Quarterly Efforts
  • Accomplish Testing
  • Report and Review Results
  • Support Process Improvements
  • Plan testing for the next Quarter

24
Command Fact Based Quarterly Certification
  • Command Level Results Compilation
  • Compile results at the Command level and provide
    to the Region
  • Command Certification
  • Provides fact-based assurance of internal
    controls within the Command
  • Signed by CO and Comptroller
  • Completed checklist is attached to Command
    Certification

25
Regional Quarterly Certification
Integrated with BUMED MIC Program Reporting
  • Regional Certification
  • Signed by Regional Commander and Comptroller
  • Completed checklists are attached to Regional
    Quarterly Certification
  • Combined with MIC reporting requirements

26
FY09 Command Level Testing Areas
  • Q2 FY09
  • Consumables Request
  • Consumables Acquisition
  • Consumables Receiving
  • Q3 FY09
  • Budget Formulation Unliquidated
    Obligations/Pipeline
  • Budget Formulation Continuing Resolution
  • Q4 FY09
  • Personal Property Receiving and Invoicing
  • Personal Property Inventory
  • Personal Property Disposal (DRMS)

Business Areas from the Key Process Map
27
Command Level Testing Format (cont)
  • Key Points
  • Comptroller is the Lead
  • Structured Responses
  • Results can be compiled and compared

28
Command Level Testing Checklist (cont)
29
Command Level Testing Format (cont)
  • Compiles results
  • Gathers comments
  • Signed by Commanding Officer

30
Summary
  • FMO administers department-level testing, while
    command-level testing programs maintain process
    documentation, test controls
  • BSO commands will provide a separate
    certification statement for ICOFR via the
    Managers Internal Control Program

31
  • Questions?

32
Contact Information
  • Nancy McDermott DON MIC Program Manager
  • nancy.l.mcdermott_at_navy.mil
  • (202) 685-6719
  • Mike Moreau DON MIC Program Coordinator
  • michael.moreau_at_navy.mil
  • (202) 685-6737
  • Richard Raimondo DON MIC Program Team Lead
  • richard.raimondo.ctr_at_navy.mil
  • (202) 685-6414
  • Mike Lipke BUMED FIP Manager
  • michael.lipke_at_med.navy.mil
  • (202) 762-0101
About PowerShow.com