7 - FIAR Spt TO 0003 E C PWS Amendment 0001 3 Apr 12.docx

Solicitation No. FA4890-10-R-0001 AF FIAR Support Task Order 0003-E&C of Mission Critical Assets Audit Readiness PWS Solicitation No. FA4890-12-R-0006

PERFORMANCE WORK STATEMENT

FOR

AIR FORCE

FINANCIAL IMPROVEMENT & AUDIT READINESS (FIAR)

SUPPORT

TASK ORDER 0003

EXISTENCE & COMPLETENESS OF MISSION CRITICAL ASSETS

(CURRENT) AUDIT READINESS (ASSERTION & SUSTAINMENT)

Contract No. FA4890-12-D-000X-0003 Amendment 0001

TABLE OF CONTENTS

APPENDICES

TABLES

1.0 BACKGROUND.

1.1 Mission. The Financial Improvement and Audit Readiness (FIAR) requirement is owned by the Assistant Secretary of the Air Force (Financial Management and Comptroller) (SAF/FM), and managed by Air Combat Command (ACC) Acquisition Management and Integration Center (AMIC). SAF/FM has the responsibility for providing the financial management and analytical services necessary for the effective and efficient use of Air Force (AF) resources, to include more than 650,000 military and civilian personnel and a budget of more than $160 billion. SAF/FM serves as the Secretary of the AF's trusted advisor by providing high-quality support to decision makers on budgetary, financial, cost and economic issues while continuously improving the quality, efficiency and customer-focus of AF financial services and operations. SAF/FMP is responsible at the executive level for ensuring the AF complies with legislative and executive financial management mandates leading to the effective and efficient use of AF resources.

1.2 Scope.

1.2.1 SAF/FM produces AF financial statements to assist financial managers in their decision-making processes by providing relevant and reliable financial information to help the AF meet the requirements of the FIAR. A major objective of SAF/FM is for these financial statements to achieve an unqualified or “clean” audit opinion for each AF financial statement. The conduit developed to assist in obtaining audit readiness is through Financial Improvement Plans (FIP). In response to the FIP, each AF organization is responsible for identifying measureable steps to ensure that each financial End to End business process is auditable, resulting in resolution of all major accounting and reporting deficiencies, and determination of dates when approved areas will be ready for validation and audit by independent external auditors.

1.2.2 The FIP process requires developed assertion packages that fully describe “audit trail” information for each assertion package/assessable unit and statement, and provide compliance information for each primary and feeder system involved in the development of these financial statements and are in compliance with Office of Secretary of Defense (Comptroller) (OUSD (C)) guidance. This information is compiled and incorporated into each management assertion package and maintained as part of an ongoing sustainment effort.

1.3 Reference. Air Combat Command (ACC) Performance Work Statement (PWS) for the AF FIAR Support contract.

2.0 TASK ORDER REQUIREMENTS.

2.1 Objectives. The objective of this task order is to provide Advisory and Assistance (A&AS) support to:

· Achieve audit readiness for the 12 currently identified assertion packages/assessable units with developed FIPs under the Existence and Completeness (E&C) of Mission Critical Assets in time to achieve assertion by 30 September 2015;

· Sustain the 12 assessable units in an audit ready state through 29 July 2017.

2.2 Performance Schedule. The Contractor shall perform the tasks detailed in this task order from 30 July 2012 (or award date) to 29 July 2017.

2.3 Performance Locations. Ongoing performance under this contract will be required at:

· National Capital Region (NCR)

· Wright Patterson Air Force Base (AFB), OH

2.4 Travel. Travel may be required as detailed in ID/IQ PWS paragraphs 1.2.7, 1.2.8 and 2.6.4 and subparagraphs, to include:

· Air Force Accounting and Finance Office (AFAFO), Denver, CO

· Defense Finance and Accounting Service (DFAS), Columbus, OH

2.5 Key Positions. Any positions proposed as key for this task as part of the Indefinite Delivery/Indefinite Quantity (ID/IQ) proposal will be considered binding key positions for the life of this task order.

2.6 Meetings. The Contractor shall support, attend, and/or participate in Statement of Budgetary Resources (SBR)-related meetings convened at the direction of the applicable Contracting Officer Representative (COR). The Contractor shall provide information in support of meetings and briefings in the format requested by the Government. Below is a list of regular meetings for SBR:

· Monthly Integrated Project Team (IPT)/Executive Steering Committee (ESC) Meetings (The IPT and ESC are each held every other month, on a rotating basis, with one of these meetings held each month)

· Monthly In-Progress Reviews (IPR) for each assertion package/assessable unit

· Weekly Team Update Meeting (TUM) for each SBR assertion package/assessable unit with SAF/FMPA COR

· Support only typically required for the following

· Weekly Management Update with SAF/FMPA

· Bi-monthly meeting with Air Force Under Secretary of Management (SAF/USM)

· Monthly FIAR Committee Meeting

· Monthly FIAR Sub-committee Meeting

· Quarterly FIAR Governance Board

2.7 Kick-Off Meeting. The Contractor shall attend a kick-off meeting in the NCR, within 10 business days of contract award, as part of the scheduled ID/IQ Kick-Off meeting, with the members of the Government Program Management Office (PMO), the Contacting Officer Representative(s) (COR), SAF/FMP leadership, and other officials as designated by the Government. See Table 2 – Contract Deliverables for details.

2.8 General Audit Readiness and Sustainment Requirements. For both assertion (pre-OUSD(C) approval) and sustainment (post OUSD(C) approval), the Contractor shall:

2.8.1 Utilize AF Acceleration Plan to determine stage of assertion/sustainment required. Then, reference applicable FIP to determine progress toward completion.

2.8.2 Obtain, collect and evaluate audit evidence to support Key Control Objectives (KCO) and overall readiness IAW FIPs, FIAR Guidance and AF Acceleration Plan so that the Government can provide evidence that all KCOs are met.

2.8.2.1 Assist the Government in performance of the Discovery, Corrective Action, Evaluation and Assertion Phases identified in FIAR Guidance for each FIP (Assertion Phase not required for Sustainment). Each FIP will be in various Phases of progress at performance start (see PWS Appendix B, Table 5 - Mandatory Supplemental Documentation). The Contractor shall provide audit liaison support for the Validation and Audit Phases identified in FIAR Guidance and each FIP. The Government will track the status of assertion packages/assessable units to/from OUSD(C) and DoD Inspector General (DoDIG).

2.8.2.2 The Government has identified Deal Breakers within each FIP that have historically resulted in material weaknesses or misstatements. Assertion package documentation and processes shall specifically address the Deal Breakers; however, separate Deal Breaker documentation is not required.

2.8.3 Recommend, obtain, and analyze ad hoc queries, miscellaneous reports or documentation to applicable COR/Team Lead to capture data to support development and sustainment of assertion packages/assessable units. Recommend actions based on analysis.

2.8.4 Review Journal Voucher (JV) transactions (currently a total of approximately 10,000 Air Force JVs in various stages of validation), validate appropriateness, and recommend corrective action for unsupportable JV transactions, as well as recommendations to ensure only valid use of JVs across the AF.

Table 1 – JV Historical Data

Note: These are total JVs performed by DFAS on behalf of the AF each fiscal year. At the start of each year, as JVs are validated, follow-on action is not required for those JVs; therefore, the totals do not represent the workload throughout the year.

2.8.5 Maintain consistent format and organization of all assertion and sustainment documentation across all assertion packages/assessable units.

2.8.5.1 Assertion and sustainment documentation include system and process flow documentation, risk analysis, control analysis, internal control testing, and evaluation of testing, and Corrective Action Plan (CAP) including documentation of manual workarounds and compensating controls involved in the development of these packages.

2.8.5.2 All documents shall be in editable and searchable versions of Microsoft Office, Microsoft Project, Microsoft Visio 2007 or 2010, Portable Document Format (PDF) using Acrobat Adobe 8.0 or 9.0 (or the latest Government versions).

2.8.5.3 Upload all documentation applicable to an assertion package/assessable unit or statement to the Contracting Officer Representative (COR)-designated location upon Government acceptance.

2.8.6 Financial Improvement Plan (FIP) Management.

2.8.6.1 FIP Management may require use of Microsoft Project.

2.8.6.2 Submit FIPs for update in the FIAR Planning Tool (FIAR-PT) with actual start and completion dates and status of each line item.

2.8.6.3 Once Contractor management review is complete and the Contractor has updated a deliverable (work product) based on applicable Government and Contractor management reviews, the Contractor shall provide the final deliverable (work product) to the applicable COR for acceptance and validation that deliverables are 100% complete.

2.8.6.4 Upon completion of all work products in an assertion package, the Contractor shall present the executive summary/statement of assertion to the applicable COR for acceptance and validation that 100% complete.

2.8.7 Assist in any oral or written presentation required in the review and approval process for each assertion package (see AF FIAR Support ID/IQ PWS paragraph 1.2 and subparagraphs).

2.8.8 Attain and sustain audit readiness once an audit ready state is achieved.

2.8.9 Update assertion packages for any systems changes to include current ‘as is’ and ‘to be’ environments per FIAR Guidance once the Defense Enterprise Accounting and Management System (DEAMS) (developed under a separate contract) is implemented and utilized within the applicable assessable unit.

2.8.10 Where deficiencies (see subparagraphs) exist, the Contractor shall work with applicable Government personnel to recommend executable corrective actions to meet assertion milestones. In those cases where executable corrective action is not deemed possible, notify the Functional Owner/COR of any actions that may delay/preclude assertion, with recommended resource/timeline requirements. Deficiencies may take the form of, but are not limited to:

2.8.10.1 Material weakness or misstatement;

2.8.10.2 Transactions that are not captured under one of the assertion packages/assessable units;

2.8.10.3 Unidentified assertion packages/assessable unit(s).

2.8.10.4 Lack of required data or lack of access to required data to support efforts.

2.8.11 Comply with Financial Improvement Systems Controls Audit Manual (FISCAM) requirements (see AF FIAR Support ID/IQ PWS Appendix B, Table 7 - Mandatory Supplemental Documentation).

2.8.12 Contracting Officer Representative (COR). The COR for this portion of the effort is located in the SAF/FMPS office in the NCR.

2.9 Existence and Completion (E&C) of Mission Critical Assets Assertion Packages.

2.9.1 The Contractor shall provide support in documenting and assessing audit readiness and sustainment to assist the Air Force in achieving and maintaining an audit ready state (per progress indicated in FIPs) for each assertion package/assessable unit. Current documentation reflects 12 assertion packages/assessable units, each of which has a developed FIP (in order of assertion completion date):

· Military Equipment

· Cruise Missiles

· Aerial Target Drones

· Spare Engines

· Uninstalled Missile Motors

· Medical Equipment

· Real Property

· Munitions

· General Equipment

· Government Furnished Equipment

· Weapon System Spares Contractor Managed/AF Possessed

· Weapon System Spares Contractor Managed/Contractor Possessed

2.9.2 There may be areas not covered within previous assessable units or assessable unit package documentation; therefore, the Contractor shall identify these areas to the Government and recommend solutions for incorporation. If the Government determines the workload warrants additional FIP(s), the Government will develop a new FIP. Once FIPs are developed, the Government will issue a separate task order(s) for new assertion packages/assessable units.

2.9.3 No overarching consolidated E&C of Mission Critical Assets assertion required.

2.9.4 Complete assertion of all E&C of Mission Critical Assets assessable units required by 30 September 2015.

2.9.5 Contracting Officer Representative (COR). The COR for this portion of the effort is located in the SAF/FMPA office in the NCR.

2.10 Sustainment.

2.10.1 The Contractor shall update assertion packages identified in this PWS to maintain audit readiness.

2.10.1.1 Complete by 31 March of each year, effective 30 September of previous FY, to maintain audit readiness, for duration of contract.

2.10.1.2 OUSD(C) approval not required.

2.10.2 The Contractor shall perform risk and/or materiality based sustainment testing for each assertion package/assessable unit.

2.10.3 COR located in SAF/FMPA office at Wright Patterson Air Force Base, OH.

3.0 OTHER APPLICABLE DATA. The Contractor shall abide by all parameters set forth in Air Force FIAR Support ID/IQ Contract, as follows:

3.1 Travel. Paragraph 2.6.4 and subparagraphs.

3.2 Administrative Considerations. Paragraph 2.7 and subparagraphs unless otherwise specified in this task order.

3.3 Environmental, Safety and Health. Paragraphs 3.0 and 4.0.

3.4 Security.

3.4.1 Paragraphs 5.0, 5.1, 5.2, 5.3, 5.5, 5.6 and 5.7 and subparagraphs (ID/IQ 5.4 applies at the ID/IQ level).

3.4.2 Paragraph 5.3.3 if a subcontractor is contracted to perform the work on a task order requirement.

3.5 Government Furnished Items. Paragraph 8.0 and subparagraphs. In addition to the Supplemental Documentation listed in the ID/IQ contract, Appendix B, this task order is subject to the additional documentation listed in this PWS at Appendix B, Table 5 – Mandatory Supplemental Documentation.

4.0 PERFORMANCE EVALUATION. The Contractor shall abide by all parameters set forth in AF FIAR Support ID/IQ PWS paragraph 7.0 and subparagraphs.

4.1 Deliverables.

4.1.1 If a deliverable due date falls on a weekend or holiday, the Contractor shall submit the deliverable on the last work day prior to the due date.

4.1.2 The Contractor shall develop and provide thorough and detailed deliverables that shall be in editable and searchable versions of Microsoft Office 2007 or 2010, PDF using Adobe Acrobat 8.0 or 9.0 (or the latest Government versions). Deliverable requirements are as follows:

Table 2 – Contract Deliverables

Due Date: As specified in each FIP Details: As part of each Test Plan deliverable, the Contractor shall populate “Population and Sample Size” and “Test Results” rows of Test Plan with confidence and assurance levels required to achieve a minimally acceptable level of confidence/assurance (see AF FIAR Support ID/IQ PWS paragraph 6.2.1.1 and sub-bullets).

Due Date: Attend within 10 business days of contract award Details: Government PMO responsible for setting up meeting.

Due Date/Details:

· Verbal and electronic notification identifying the nature of the issue to the COR within three (3) business hours of identification.

· Written recommendations and corrective actions required to meet FIP and AF Acceleration Plan milestones/timelines within eight (8) business hours of identification, unless otherwise approved in writing by the applicable COR.

4.1.3 Meeting the contract performance schedule is critical to the success of this requirement. Thus the contractor shall notify in writing the applicable COR, Quality Assurance Manager (QAM), and CO at any point during contract performance if they believe the Government has not provided requested information in a reasonable amount of time or if the information provided does not meet accuracy or completeness needs for continued successful performance. Appropriate Government personnel will then work to resolve the situation and final resolution and dispensation will be documented for the record by the CO.

4.2 Services Summary. This Services Summary identifies critical success factors for the contract. The Services Summary:

4.2.1 Lists performance objectives for the required service that the government will surveil. The government reserves the right to surveil all services called for in this PWS to determine whether the performance objectives and goals were met. The absence of any contract requirement from the Services Summary shall not detract from its enforceability nor limit the rights or remedies of the Government under any other provision of the contract.

4.2.2 States the performance objective, standard, and threshold (accept/reject point) for each critical success factor.

4.2.3 Will be used as the baseline to develop a Quality Assurance Surveillance Plan (QASP). The QASP will identify the audit methods/procedures the Government will use to evaluate the contractor's performance.

Table 3 – Services Summary

a) Qualified key personnel are on the job at contract start, unless previously negotiated by the CO.

b) Vacancies are filled with qualified key personnel within 14 days of vacancy, unless approved in writing or otherwise directed in advance by the CO

AND

c) There is no mission impact due to position vacancies or unqualified personnel.

a) 100% of major FIP work product deliverables (bolded items) are submitted for update in the FIAR Planning Tool (FIAR-PT), when any changes occur, daily on contractually required work days; AND

b) 90% of lower level line items are submitted for update in the FIAR-PT, when any changes occur, daily on contractually required work days; remaining 10% are submitted for update in the FIAR-PT, when any changes occur, within two days on contractually required work days.

a) 100% of deliverable requirements are met and received on time AND

b) Critical information is accurate.

Initial Contract Performance Review (see AFI 63-101)

APPENDICES

APPENDIX A ACRONYMS

See AF Acceleration Plan, pages 70-76 and FIAR Guidance, Appendix F

Table 4 – Contract Acronyms

APPENDIX B MANDATORY SUPPLEMENTAL DOCUMENTATION

Table 5 – Mandatory Supplemental Documentation Financial Improvement Plans (FIP) – includes status of assertions

Military Equipment (currently under examination; will be in sustainment at task order start)

Cruise Missiles (currently under examination; will be in sustainment upon completion)

Aerial Target Drones (currently under examination; will be in sustainment upon completion)

Uninstalled Missile Motors (currently asserted; will be under examination at task order start and in sustainment upon completion)

See all Mandatory Supplemental Documentation listed in the AF FIAR Support ID/IQ PWS

AF FIAR Support E&C PWS image2.emf

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Project Details: Medical Equipment

ID

WBS

Task Name Start Finish Baseline Start Baseline Finish % Complete Task Predecessors KCO Weakness Control Objective Test Status Primary FS Assertions Secondary FS Assertions FIAR Milestone A-123, Appendix A Other Milestone Type Responsible Person

FIE

Process L0 Process L1 Lead Org Support Org Resource Names LoE to Complete LoE Committed Task Notes Text 17 Text 18 Text 19 Text 20 Text 21 Text 22 Text 23 Text 24 Text 25 Financial Improvement Deliverable Financial Improvement Phase FR Review Item Work Product Milestone Execution View

Evaluation and Discovery 10/3/2011 4/30/2012

NA

NA

0%

No

SMALSKAS; ROBERT

1.1000000000000001 Statement to Process Analysis 10/3/2011 4/30/2012

NA

1.1.1 Using the Financial Statement, prepare a process and systems drill down detailing accounts/transaction classes, underlying processes and associated systems--depicting "as-is" and "audit-ready" integrated environments 10/3/2011 4/30/2012

NA

1.1.2 Using the mapping in step 1.1.1, compile quantitative drill down - levels 1 and 2 by transaction class by business process and supporting systems and feeder systems, including dollar activity and number of transactions for each assessable and sub-assessab 10/3/2011 4/30/2012

NA

1.2 Prioritization 10/3/2011 2/28/2012

NA

1.2.1 For each assessable unit listed in the matrix prepared in step 1.1, rank in order of quantitative materiality (largest dollar activity is highest priority, etc.)

10/3/2011 2/28/2012

NA

1.2.2 Identify and document a comprehensive list of significant qualitative risk associated with the assessable units (e.g., budgetary restriction over representation allowance) 10/3/2011 2/28/2012

NA

1.2.3 Identify all legacy processes/systems planned to be replaced by "audit-ready" integrated environment systems/processes before readiness assertion 10/3/2011 2/28/2012

NA

1.2.4 Document prioritization of assessable units using quantitative prioritization (step 1.2.1), adjusted for significant qualitative risks (step 1.2.2) and potentially scoping-out legacy processes that will not endure until assertion (step 1.2.3) 10/3/2011 2/28/2012

NA

1.3 Assess & Test Controls 2/1/2012 3/1/2012

NA

1.3.1 For entity level controls and each assessable unit, identify all relevant Key Control Objectives (KCOs) and document in Financial Improvement Plans (FIPs) 2/1/2012 3/1/2012

NA

1.3.2 Start with highest priority assessable units (step 1.2.4), to prepare process narratives, flowcharts, and worksheets documenting processes, risks, control activities (manual and automated) and IT general computer controls for significant systems 2/1/2012 3/1/2012

NA

1.3.3 Prepare Controls Assessment for each assessable unit, summarizing key control activities and noting deficiencies for missing control activities or control activities that are not designed effectively 2/1/2012 3/1/2012

NA

1.3.4 For entity level controls and assessable unit level control activities appropriately designed and in place, develop and execute a test plan to assess the operating effectiveness of control activities 2/1/2012 3/1/2012

NA

1.3.5 Update the control assessment with the results of tests of controls, indicating the number tested, the number of controls operating effectively and any exceptions or deviations noted during testing 2/1/2012 3/1/2012

NA

1.3.6 Identify any control activities with operations or documentation deficiencies that require corrective action to be addressed in step 1.5.1 2/1/2012 3/1/2012

NA

1.4 Evaluate Supporting Documentation 3/1/2012 4/30/2012

NA

1.4.1 Prepare/extract a population of transaction-level detail (or balance-level as appropriate), total the value of the detail, ensure that the total agrees to the GL accounts and financial statements, and document the reconciliation 3/1/2012 4/30/2012

NA

1.4.2 Perform initial data mining to identify and address old or stale transactions, and search for and correct abnormal balances (negative obligations, etc.)

3/1/2012 4/30/2012

NA

1.4.3 For each F/S Assertion, identify and document specific supporting documentation from (KSDs) needed to adequately support individual transactions or balances (e.g., vendor invoice supports valuation of a disbursement 3/1/2012 4/30/2012

NA

1.4.4 Determine how many years of electronic data and supporting documentation are needed to support audit readiness assertion 3/1/2012 4/30/2012

NA

1.4.5 Develop a test plan, then select a sample from the population and test to confirm the existence and quality of supporting documentation for all relevant financial statement assertions for the population. As part of the supporting documentation testing ab 3/1/2012 4/30/2012

NA

1.4.6 Summarize results of testing and identify deficiencies in documentation using the Evaluation of Test Results to be addressed in step 1.5.1. All exceptions above the predetermined tolerable misstatement must be considered deficiencies 3/1/2012 4/30/2012

NA

1.5 Define Audit-Ready Enviroment 2/1/2012 4/27/2012

NA

1.5.1 Design the "To-Be" environment for remediating the design deficiencies 2/1/2012 4/27/2012

NA

1.5.2 Design the "To-Be" environment for remediating operating deficiencies 2/1/2012 4/27/2012

NA

1.5.3 Design the "To-Be" environment for remediating data integrity deficiencies 2/1/2012 4/27/2012

NA

1.5.4 Design the "To-Be" environment for remediating supporting documentation deficiencies 2/1/2012 4/27/2012

NA

Key Control Objectives/Key Supporting Documentation/FIAR Key Milestones 10/3/2011 5/31/2012

NA

2.1 Key Control Objectives 10/3/2011 5/31/2012

NA

2.1.1 Accounts and all the transactions (or assets) they accumulate are properly classified and Accounting principles are consistently applied from period to period (FAM 395B: 15 and 16) 10/3/2011 5/31/2012

NA

2.1.1.1 Ability to classify assets as Held for Use; Held for Repair; and Excess, Obsolete and Unserviceable, as required by GAAP for Note 9 10/3/2011 5/31/2012

NA

2.1.2 Ensure recorded transactions represent economic events that actually occurred and are properly classified and recorded in the proper period (FAM 395B:1c, and 2) 10/3/2011 5/31/2012

NA

2.1.2.1 Ability to record dispositions of assets in logistics systems and General Ledgers to include dispositions such as sales 10/3/2011 5/31/2012

NA

2.1.2.2 Ability to recognize when title passes or when assets are produced or delivered to the purchasing entity (SFFAS 3, par. 19 and par. 38) 10/3/2011 5/31/2012

NA

2.1.3 Ensure recorded assets exists at a given date (FAM 395B: 4a) 10/3/2011 5/31/2012

NA

2.1.3.1 Ability to perform physical inventories in accordance with GAGAS and a formal Physical Inventory Strategy and Plan from General Ledger to individually identified physical assets 10/3/2011 5/31/2012

NA

2.1.4 Ensure recorded assets at a given date, are supported by appropriate detailed records that are accurately summarized and reconciled to the account balance (FAM 395B: 4b) 10/3/2011 5/31/2012

NA

2.1.4.1 Ability to support baseline/opening balances with acceptable documents or alternative methods when supporting documents are not available 10/3/2011 5/31/2012

NA

2.1.5 Ensure recorded assets are owned by the entity. The entity has rights to the recorded asset at a given date (FAM 395B: 12 and 13) 10/3/2011 5/31/2012

NA

2.1.5.1 Ability to identify and distinguish assets held by one entity but owned by another seperately 10/3/2011 5/31/2012

NA

2.1.6 Ensure all existing assets, as of the reporting date, including property in the custody of third parties, are included in the general ledger (FAM 395B: 8) 10/3/2011 5/31/2012

NA

2.1.6.1 Ability to capture the existence and value of assets held by third parties, such as GFM in the possession of contractors 10/3/2011 5/31/2012

NA

2.1.6.2 Ability to perform physical inventory in accordance with GAGAS and a formal Physical Inventory Strategy and Plan from individually identified physical assets to general ledger (Floor to Record) 10/3/2011 5/31/2012

NA

2.2000000000000002 Key Supporting Documents 10/3/2011 4/27/2012

NA

2.2.1 Direct Supporting Documentation 10/3/2011 4/27/2012

NA

2.2.1.1 Statement-to-process analyses demonstrating the dollar amount and quantity of activity flowing through various processes and/or locations 10/3/2011 4/27/2012

NA

2.2.1.2 Applicable policies and procedures 10/3/2011 4/27/2012

NA

2.2.1.3 Process narratives and flowcharts 10/3/2011 4/27/2012

NA

2.2.1.4 Control worksheets, identifying risks, KCOs and corresponding control activities 10/3/2011 4/27/2012

NA

2.2.1.5 Test plans documenting planned procedures used to test the operating effectiveness of control activities 10/3/2011 4/27/2012

NA

2.2.1.6 Control assessments with test results 10/3/2011 4/27/2012

NA

2.2.1.7 Evaluation of test results 10/3/2011 4/27/2012

NA

2.2.1.8 Documentation evidencing the operation of internal control activities for the period under audit. Examples include: physical inventory count documentation, monthly reviews of expenses (greater than capitalization thresholds), approval documents, system u 10/3/2011 4/27/2012

NA

2.2.2 Tier One Supporting Asset Documentation 10/3/2011 4/27/2012

NA

2.2.2.1 Physical inventory count documentation (inventory instructions, completed inventory count sheets (indicating items selected from the book and physically inspected on the floor), preparer/reviewer signatures and supporting documentation evidencing reso 10/3/2011 4/27/2012

NA

2.2.2.2 Physical inventory count documentation (inventory instructions, completed inventory count sheets (indicating items selected from the floor and traced back to the book), preparer/reviewer signatures and supporting documentation evidencing resolution of 10/3/2011 4/27/2012

NA

2.2.2.3 Detailed listing of all assets from APSRs 10/3/2011 4/27/2012

NA

2.2.2.4 Summary schedule reporting the amounts/quantities by class of assets 10/3/2011 4/27/2012

NA

2.2.2.5 Reconciliation demonstrating how totals in the detail listing agree to the amounts/quantities reported in the summary schedule 10/3/2011 4/27/2012

NA

2.2.2.6 Policies and procedures relevant to the assets, demonstrating the consistency of accounting treatment across all years presented 10/3/2011 4/27/2012

NA

2.2.2.7 Written definitions of asset classes and assessable units 10/3/2011 4/27/2012

NA

2.2.2.8 Documentation demonstrating efforts made to obtain supporting documentation in cases where Tier 1 documentation is not used. Examples include data call requests, email traffic, meeting documentation, site visit inspection notes, etc.

10/3/2011 4/27/2012

NA

2.2.2.9 Contract documentation, including (for base assets and asset modifications):

10/3/2011 4/27/2012

NA

2.2.3 Tier Two Supporting Asset Documentation 10/3/2011 4/27/2012

NA

2.2.3.1 Photographs or satellite images of assets in remote (e.g., deployed) or unreachable (e.g., outer space) locations, electronic pings of assets located in space, etc.

10/3/2011 4/27/2012

NA

2.2.3.2 Asset logs (e.g. maintenance logs or usage logs) that are reconciled to the APSR, demonstrating the completeness of the APSR population 10/3/2011 4/27/2012

NA

2.2.3.3 Mission-management/logistics data (if different from the APSRs) used by leadership to track, deploy or distribute assets, reconciled to the APSR demonstrating the completeness of the APSR population 10/3/2011 4/27/2012

NA

2.2.3.4 Tract maps, land plats, space management systems, utilities maps or facility diagrams that are reconciled to the APSR, demonstrating the completeness of the APSR population 10/3/2011 4/27/2012

NA

2.2.3.5 Budget data (military equipment appropriation law/conference reports that specify number and types of equipment to be purchased).

10/3/2011 4/27/2012

NA

2.2.3.6 Other estimation techniques that can be used to estimate the size of the population with tolerable precision and then compared to the APSR population to demonstrate completeness 10/3/2011 4/27/2012

NA

2.2.3.7 Invoices, Budget/Appropriation documentation, Engineering documents and payment vouchers 10/3/2011 4/27/2012

NA

2.2.3.8 Non procurement documentation evidencing ownership, e.g., maintenance or usage records going back many years; other external/internal documentation that proves assets were put into service (e.g., commissioning announcements) and demonstrates the assets ar 10/3/2011 4/27/2012

NA

2.2.4 Tier Three Supporting Asset Documentation 10/3/2011 4/27/2012

NA

2.2.4.1 Physical indicators of ownership rights, including: assets located on reporting entity facility, assets tagged with identification numbers (e.g. barcodes or tail numbers) that indicate reporting entity ownership, assets are marked with reporting entity's 10/3/2011 4/27/2012

NA

2.2999999999999998 Dealbreakers 10/3/2011 4/27/2012

NA

2.3.1 Cannot reconcile the general ledger to transaction detail, including support for all material journal vouchers related to the assessable unit (Discovery Phase, Task 1.4, Activity 1.4.1) 10/3/2011 4/27/2012

NA

2.3.2 Testing of transaction samples back to source documents (Discovery Phase, Task 1.4, Activity 1.4.5):

10/3/2011 4/27/2012

NA

2.3.2.1

a) Covers all material transaction types, sub-processes, and locations 10/3/2011 4/27/2012

NA

2.3.2.2

b) Is extensive enough to draw conclusions consistent with the effectiveness of controls. Specifically, if controls are ineffective, sufficient substantive testing (i.e. test of details performed through statistical or valid non-statistical sampling, or 10/3/2011 4/27/2012

NA

2.3.3 All financial statement assertions and relevant risks are addressed either through control or substantive testing (Discovery Phase, Task 1.3, Activity 1.3.1 and Task 1.4, Activity 1.4.5) 10/3/2011 4/27/2012

NA

2.3.4 Reconciliations, transaction populations, and supporting documentation can be provided in a timely manner (Only applies if we become aware of this during follow-up actions) 10/3/2011 4/27/2012

NA

2.3.5 Demonstration of effective controls for high transaction volume areas (i.e., supply, contracts, FBWT, Inventory, OM&S, GE, etc) 10/3/2011 4/27/2012

NA

2.3.6 IT general and application controls must be deemed effective and tested for management to rely on automated application controls or system generated reports (i.e. KSDs) from IT systems 10/3/2011 4/27/2012

NA

2.3.7 Supporting Documentation Testing (i.e. substantive testing) cannot overcome ineffective or missing ITGC and application controls when transaction evidence is electronic and only maintained within a system, or the key supporting evidence are system generat 10/3/2011 4/27/2012

NA

2.3.8 Integration of service provider processes, risks and controls within scope of testing if those procedures are material to the assessable unit 10/3/2011 4/27/2012

NA

Corrective Actions 3/1/2012 6/29/2012

NA

3.1 Design Audit-Ready Environment 3/1/2012 4/30/2012

NA

3.1.1 Design solution to mitigate deficiencies for control activities, processes and/or systems, and policies and procedures that meet the objectives defined in step 1.5.1 3/1/2012 4/30/2012 3/1/2012 4/30/2012

3.1.2 Design solution to mitigate deficiencies in supporting documentation that meet the objectives defined in step 1.5.1 3/1/2012 4/30/2012 3/1/2012 4/30/2012

3.2 Develop Corrective Action Plan 4/2/2012 6/29/2012

NA

3.2.1 Develop implementation plan to execute designed "to-be" solution, including updating policies and procedures, preparing system design documents, and drafting documentation templates 4/2/2012 6/29/2012 4/2/2012 6/29/2012

3.2.2 Update Financial Improvement Plan (FIP) with specific corrective action plans (CAP) and target completion dates 4/2/2012 6/29/2012 4/2/2012

3.3 Resourcing 4/2/2012 6/29/2012

NA

3.3.1 Develop budget estimates of required resources to execute implementation plans, including FTEs and funds for contractor assistance 4/2/2012 6/29/2012 4/2/2012

3.3.2 Prepare and submit budget justification/resource management decision materials as needed 4/2/2012 6/29/2012 4/2/2012

3.4 Executing 4/2/2012 6/29/2012

NA

3.4.1 Execute systems, process, controls and documentation changes included in CAPs. On a monthly basis update FIPs to reflect progress and accomplishments, including any scope and timeline changes that result during execution 4/2/2012 6/29/2012 4/2/2012

Evaluation 6/1/2012 7/31/2012

NA

4.0999999999999996 Testing 6/1/2012 7/31/2012

NA

4.1.1 Once corrective actions have been fully implemented, perform update testing to confirm corrective actions (processes, controls, documentation or systems) have successfully mitigated the deficiencies previously identified 6/1/2012 7/31/2012 6/1/2012 7/31/2012

4.1.2 Update testing results for control activities using the Controls Assessment (from step 1.3.3) and testing results for documentation using the Evaluation of Test Results template (from step 1.4.6) 6/1/2012 7/31/2012 6/1/2012

4.2 Decision 6/1/2012 7/31/2012

NA

4.2.1 If testing indicates corrective actions were successful, proceed to Assertion Phase 6/1/2012 7/31/2012 6/1/2012

4.2.2 If testing indicates material deficiencies are not addressed, return to the Evaluation & Discovery Phase: Design Audit Ready Environment (step 1.5.1) to redefine objectives of "to-be" solution and then initiate corrective action 6/1/2012 7/31/2012 6/1/2012

Assertion 8/1/2012 9/28/2012

NA

5.0999999999999996 Compile, Process, Control, and System Documentation 8/1/2012 9/28/2012

NA

5.1.1 Compile final, "audit-ready" process documentation that reflects the current, integrated process environment, including process narratives, flow charts, and control assessment forms. Communicate Audit Readiness to the FIAR Directorate 8/1/2012 9/28/2012 8/1/2012 9/28/2012

5.2 Compile Supporting Documentation 8/1/2012 9/28/2012

NA

5.2.1 Compile evaluations of test results, demonstrating sufficient and appropriate supporting documentation exists to assert audit readiness 8/1/2012 9/28/2012 8/1/2012 9/28/2012

Sustainment 10/3/2011 10/3/2011

NA

6.1 Ongoing Testing 10/3/2011 10/3/2011

NA

6.1.1 As part of ICOFR activities, prepare/update process, controls and testing documentation 10/3/2011 10/3/2011

NA

6.1.2 Perform ongoing remediation for deficiencies noted during ICOFR activities 10/3/2011 10/3/2011

NA

6.2 Ongoing Corrective Actions 10/3/2011 10/3/2011

NA

6.2.1 Perform ongoing remediation for deficiencies noted during ICOFR activities and update the FIP 10/3/2011 10/3/2011

NA

Validation 10/3/2011 10/3/2011

NA

7.1 Assertion Documentation Review 10/3/2011 10/3/2011

NA

7.1.1 DoD OIG and FIAR review of assertion documentation to ensure that all required documents have been completed; all required management testing has been performed, and management testing results indicate audit readiness 10/3/2011 10/3/2011

NA

7.2 Assertion Examination 10/3/2011 10/3/2011

NA

7.2.1 For Appropriations Received and Balance Sheet Assessable Units: DoD OIG (with IPA assistance, if necessary) perform examination of management's audit readiness assertion. This includes examination of latest fiscal year end balances in accordance with AIC 10/3/2011 10/3/2011

NA

Audit 10/3/2011 10/3/2011

NA

8.1 Engage Auditor 10/3/2011 10/3/2011

NA

8.1.1 Issue RFP and award contract to IPA (via the DoD OIG) to assist with/perform the annual financial statement audit 10/3/2011 10/3/2011

NA

8.1999999999999993 Support Audit 10/3/2011 10/3/2011

NA

8.2.1 Perform audit coordination activities, participating in meetings to provide background information 10/3/2011 10/3/2011

NA

8.2.2 Collect and provide documentation for all auditor requests within established time requirements 10/3/2011 10/3/2011

NA

8.2.3 Managing issues and respond to findings, working through issues and concerns raised by the auditor that could impede the audit's progress and developing responses to audit findings (including planned corrective actions) 10/3/2011 10/3/2011

NA

8.3000000000000007 Auditor Issues Audit Opinion 10/3/2011 10/3/2011

NA

image3.emf

REALPR~1.XML

2012-03-19T14:08:29Z 2012-03-19T13:30:08Z 12.00

Project Details: Real Property Existence and Completeness

ID

WBS

Task Name Start Finish Baseline Start Baseline Finish % Complete Task Predecessors KCO Weakness Control Objective Test Status Primary FS Assertions Secondary FS Assertions FIAR Milestone A-123, Appendix A Other Milestone Type Responsible Person

FIE

Process L0 Process L1 Lead Org Support Org Resource Names LoE to Complete LoE Committed Task Notes Text 17 Text 18 Text 19 Text 20 Text 21 Text 22 Text 23 Text 24 Text 25 Financial Improvement Deliverable Financial Improvement Phase FR Review Item Work Product Milestone Execution View

Discovery 2/16/2011 10/30/2012

NA

50%

1.1000000000000001 Statement to Process Analysis 8/1/2011 1/18/2012

NA

100%

FMPA

A7C

1.1.1 Initial Process and System Drill Down Analysis (Assertion Work Product 1.1.1) 8/1/2011 9/26/2011

NA

Mitchell Bemos

1.1.2 Quantitative Drill Down Level 1 (Assertion Work Product 1.1.2a) 9/1/2011 1/18/2012

NA

1.1.2.1 Using the assessable units, prepare a quantitative drill down (QDD) depicting a count and balance ($) of each assessable unit (level 1) and sub-unit (level 2) annually. The QDD should also indicate the percentage of the total line item each assessable un 9/1/2011 1/18/2012

NA

1.1.2.1.1 Obtain and evaluate ACES-RP data for identified assessable units, excluding CIP 9/1/2011 11/16/2011

NA

1.1.2.1.2 Obtain and evaluate IWIMS data for identified assessable units, excluding CIP-MILCON 9/1/2011 1/18/2012

NA

1.1.2.1.3 Obtain and evaluate NAVFAC data for identified Navy-related CIP-MILCON projects 9/28/2011 1/18/2012

NA

1.1.2.1.4 Obtain and evaluate USACE data for identified USACE-related CIP-MILCON projects 9/28/2011 1/18/2012

NA

1.1.2.1.5 Obtain Support of any reconciling items (such as support and approval for adjusting journal vouchers) and test the validity of the supporting documentation reconciling item 9/28/2011 1/18/2012

NA

1.1.3 Quantitative Drill Down Level 2 (Assertion Work Product 1.1.2b) 9/1/2011 1/18/2012

NA

1.1.3.1 Using the assessable units, prepare a quantitative drill down (QDD) depicting a count and balance ($) of each sub-unit of each assessable unit annually. The QDD should also indicate the percentage of the total line item each sub-unit 9/1/2011 1/18/2012

NA

1.2 Prioritization 2/16/2011 1/31/2012

NA

1.2.1 Initial Systems Inventory List (Assertion Work Product 1.2.3) 2/16/2011 1/31/2012

NA

1.2.1.1 For each assessable unit identified in the statement, develop a systems inventory list to include all current and future systems (including systems environments), processes planned to be replaced and the date replacement will occur 2/16/2011 1/31/2012

NA

1.2.2 Sub-Assessable Unit Prioritization Document (Assertion Work Product 1.2.4) 3/22/2011 1/31/2012

NA

1.2.2.1 For each assessable unit identified in the statement to process analysis (Step 1.1), rank each in order of quantitative materiality 8/1/2011 1/31/2012

NA

1.2.2.2 For each assessable unit identified, develop a list of qualitative risks or factors associated with the assessable units 8/1/2011 10/30/2011

NA

1.2.2.3 Prepare an assessable unit prioritization document listing all assessable units, prioritized by quantitative rank (step 1.2.1) and adjusted for qualitative factors (step 1.2.2) and potentially scoping-out legacy systems (including system environments) and 3/22/2011 1/31/2012

NA

1.3 Assess and Test Controls 8/1/2011 10/30/2012

NA

50%

1.3.1 Initial Identification and Mapping of Key Control Objectives and Key Supporting Documents 8/1/2011 12/15/2011

NA

1.3.10 Initial System User Listing (Assertion Work Product 1.3.2) 1/25/2012 3/14/2012

NA

25%

1.3.11 Initial Test of Controls and Test Plans (Assertion Work Product 1.3.4) 1/25/2012 7/31/2012

NA

3%