FIAR Spt TO 0003 E C PWS 8 Mar 12.docx

Solicitation No. FA4890-10-R-0001 AF FIAR Support Task Order 0001 – SBR Audit Readiness & Sustainment 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

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, Directorate of Financial Management (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 commander'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 developed the AF Financial Improvement Plan (FIP) to assist financial managers in their decision-making processes by providing relevant and reliable financial information. A major objective of this plan is to achieve an unqualified or “clean” audit opinion for each AF financial statement. 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 assessable unit/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 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 30 September 2015.

2.2 Performance Schedule. The Contractor shall perform the tasks detailed in this task order from 23 July 2012 (or award date) to 30 September 2015.

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 Section A, paragraph 1.2.7, 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 Kick-Off Meeting. The Contractor shall attend a kick-off meeting in the NCR, within 10 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.

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

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

2.7.2 Provide evidence that all Key Control Objectives (KCO) are met IAW FIPs, FIAR Guidance and AF Acceleration Plan.

2.7.2.1 Perform 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 to/from OUSD(C) and DoD Inspector General (DoDIG).

2.7.2.2 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.

2.7.3 Provide dedicated support for each AF Major Commands (MAJCOM) to serve as lead/liaison to gather and disseminate required data to and from the field for direct support of Statement of Budgetary Resources (SBR) and Existence and Completeness (E&C) for Mission Critical Assets audit readiness requirements. These Contractor personnel shall provide support at or near each AF MAJCOM HQ location.

2.7.4 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. Recommend actions based on analysis.

2.7.5 Validate obligations to ensure Beginning Balances are accurate. Beginning Balances are comprised of the ending balance of an account from the prior year that must be brought forward to depict an accumulative balance within the current period.

2.7.6 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.

2.7.7 Maintain consistent format and organization of all assertion and sustainment documentation across all assertion packages.

2.7.7.1 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.

2.7.7.2 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).

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

2.7.8 Financial Improvement Plan (FIP) Management.

2.7.8.1 FIP Management requires use of Microsoft Project.

2.7.8.2 Update FIPs with actual start and completion dates and status of each line item.

2.7.8.3 Once Contractor management review is complete and the Contractor has updated a deliverable (work product) based on Government POCand 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.

2.7.8.4 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.

2.7.9 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).

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

2.7.11 Update assertion packages for any systems changes to include current ‘as is’ and ‘to be’ environments per FIAR Guidance.

2.7.12 Where deficiencies (see subparagraphs) exist, the Contractor shall 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:

2.7.12.1 Material weakness or misstatement;

2.7.12.2 Transactions that are not captured under one of the assessable units;

2.7.12.3 Unidentified assessable units.

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

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

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

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

2.8.1 The Contractor shall achieve audit readiness for assertion and sustain an audit ready state (per progress indicated in FIPs) of each assessable unit. Current documentation reflects 13 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

2.8.2 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 assessable units.

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

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

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

2.9 Sustainment.

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

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

2.9.1.2 OUSD(C) approval not required.

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

2.9.3 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. Section A, paragraph 2.7.4 and subparagraphs.

3.2 Administrative Considerations. Section A, paragraph 2.8 and subparagraphs unless otherwise specified in this task order.

3.3 Environmental, Safety and Health. Section B, paragraphs 3.0 and 4.0.

3.4 Security.

3.4.1 Section B, 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 Section A, paragraph 2.3.3 if a subcontractor is contracted to perform the work on a task order requirement.

3.5 Government Furnished Items. Section D, paragraphs 10.0 and 11.0 and subparagraphs. In addition to the Supplemental Documentation listed in the ID/IQ contract, section E, Appendix B (as referenced in Section D, paragraph 11.1.2), this task order is subject to the additional documentation listed in this PWS at Appendix B, Table 5 – Mandatory Supplemental Documentation, page 12.

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

4.1 Deliverables.

4.1.1 The Government has unlimited and unrestricted data rights to all deliverables related to this contract.

4.1.2 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.

4.1.3 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 Acrobat Adobe 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 calendar days of contract award Details: Government PMO responsible for setting up meeting.

Due Date/Details:

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

· Written recommendations and corrective actions required to meet FIP and AF Acceleration Plan milestones/timelines within eight (8) hours of identification.

Due Date: Every 24 hours (during Government work days as defined in AF FIAR Support ID/IQ PWS paragraph 2.7)

4.1.4 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

Provide and retain qualified key personnel

Key personnel possess qualifications, certifications and experience as identified in Management Plan Performance is acceptable when: 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.

delivered on or before FIP due date No major nonconformance is allowed.

a) 100% of major FIP work product deliverables (bolded items) are updated within 24 hours (during Government work days as defined in AF FIAR Support ID/IQ PWS paragraph 2.7), AND

b) 90% of lower level line items are updated within 24 hours (during Government work days as defined in AF FIAR Support ID/IQ PWS paragraph 2.7); remaining 10% within next 24 hours (48 hours total during Government work days as defined in AF FIAR Support ID/IQ PWS paragraph 2.7)

Deliverables Management

Develop and submit all required deliverables

Performance is acceptable when:

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

· AF Acceleration Plan, pages 70-76

· 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)

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

AF FIAR Support E&C PWS Current as of 8 Mar 12 image2.emf

Aerial Target Drone FIP 01.26.12 Grid Data

Project Details: Target Drones

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 Text 26 Text 27 Text 28 Text 29 Text 30

1 1 Evaluation & Discovery 1/19/2011 4/22/2011 1/19/2011 4/22/2011 0% No

2 1.1 Statement to Process Analysis 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No

3 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 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

4 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 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

5 1.2 Prioritization 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No

6 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) 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

7 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) 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

8 1.2.3 Identify all legacy processes/systems planned to be replaced by "audit-ready" integrated environment systems/processes before readiness assertion 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

9 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) 1/19/2011 2/25/2011 1/19/2011 2/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

10 1.3 Assess & Test Controls 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No

11 1.3.1 For each assessable unit plan, identify all relevant Key Control Objectives and document in Section 2 of the plan 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

12 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 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

13 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 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

14 1.3.4 Execute tests of controls 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

15 1.3.5 Summarize testing results on Controls Assessment 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

16 1.3.6 Identify any deficiencies in the operation or documentation of control activities 2/9/2011 3/25/2011 2/9/2011 3/25/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

17 1.4 Evaluate Supporting Documentation 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No

18 1.4.1 Prepare/extract a population of transaction-level detail (or balance-level as appropriate) that agrees in total to the trial balance and document on account leadsheets 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

19 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.) 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

20 1.4.3 For each fin. Stmt. Assertion, identify and document specific supporting documentation from FIAR Guidance Key Supporting Documentation needed to adequately support individual transactions or balances (e.g., vendor invoice supports valuation of a disbursem 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

21 1.4.4 Determine how many years of data/documentation are needed to support assertion 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

22 1.4.5 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 validation, assess the location/sour 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

23 1.4.6 Summarize results of testing and deficiencies in documentation using the Evaluation of Test Results template 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

24 1.5 Define Audit-Ready Environment 4/11/2011 4/22/2011 4/11/2011 4/22/2011 0% No

25 1.5.1 Define requirements for control activities, documentation, processes, and/or systems needed to address all deficiencies noted in steps 1.3.3, 1.3.6, 1.4.2 and 1.4.6 4/11/2011 4/22/2011 4/11/2011 4/22/2011 0% No SAF/FMPA AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

26 2 Key Control Objectives and Capabilities 2/28/2011 5/6/2011 2/28/2011 5/6/2011 0% No

27 2.1 Ensure Operating Materials and Supplies (OM&S) balances and related footnote disclosures contain all information needed for fair presentation in accordance with GAAP. (FAM 395B: 15, 16, and 17) 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Presentation and Disclosure No

28 2.1.1 Ability to classify OM&S assets as Held for Use; Held for Repair; and Excess, Obsolete and Unserviceable, as required by GAAP for Note 9. 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Presentation and Disclosure No

29 2.2 Ensure recorded OM&S transactions represent economic events that actually occurred and are properly classified and recorded in the proper period. (FAM 395B:1c, and 2) 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Existence or Occurrence No

30 2.2.1 Ability to record dispositions of OM&S assets in logistics systems and General Ledgers to include dispositions such as sales. 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Existence or Occurrence No

31 2.2.2 Ability to recognize when title passes or when OM&S assets are produced or delivered to the purchasing entity. (SFFAS 3, par. 19 and par. 38) 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Rights and Obligations Completeness No

32 2.3 Ensure recorded OM&S exists at a given date. (FAM 395B: 4a) 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Existence or Occurrence No

33 2.3.1 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. 2/28/2011 4/11/2011 2/28/2011 4/11/2011 0% Effective Existence or Occurrence No

34 2.4 Ensure recorded OM&S at a given date, are supported by appropriate detailed records that are accurately summarized and reconciled to the account balance. (FAM 395B: 4b) 4/11/2011 5/6/2011 4/11/2011 5/6/2011 0% Effective Existence or Occurrence Valuation or Allocation No

35 2.4.1 Ability to support baseline/opening balances with acceptable documents or alternative methods when supporting documents are not available. 4/11/2011 5/6/2011 4/11/2011 5/6/2011 0% Effective Existence or Occurrence Valuation or Allocation No

36 2.5 Ensure recorded OM&S are owned by the entity. The entity has rights to the recorded asset at a given date. (FAM 395B: 12) 4/11/2011 5/6/2011 4/11/2011 5/6/2011 0% Effective Rights and Obligations No

37 2.5.1 Ability to identify and distinguish separately OM&S assets held by one entity but owned by another. 4/11/2011 5/6/2011 4/11/2011 5/6/2011 0% Effective Rights and Obligations No

38 2.6 Ensure all existing OM&S, as of the reporting date, including property in the custody of third parties, are included in the general ledger. (FAM 395B: 8) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Effective Completeness Valuation or Allocation No

39 2.6.1 Ability to capture the existence and value of OM&S assets held by third parties, such as GFM in the possession of contractors. 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Effective Completeness Valuation or Allocation No

40 2.6.2 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). 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Effective Completeness No

41 2.7 Ensure all OM&S are recorded at full cost in the general ledger. (FAM 395B: 9 and 10) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation No

42 2.7.1 Ability to value OM&S assets at moving average cost (DoD FMR, Volume 1, Chapter 4), or when required by the DoD FMR, at historical cost, latest acquisition cost, or net realizable value. (SFFAS 3, par. 20 & 26) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation No

43 2.7.2 Ability to capture the full cost of OM&S assets valued at historical cost to include all other costs, such as transportation and production costs, incurred to bring the items into its current condition and location. (SFFAS 3, par. 21) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation No

44 2.7.3 Ability to charge to operations for the period any abnormal costs, such as excessive handling or rework costs. (SFFAS 3, par. 21) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation No

45 2.7.4 Ability of logistics systems to value OM&S assets using Moving Average Cost (MAC) or other acceptable method such as FIFO. (DoD FMR Volume 1, Chapter 4) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation No

46 2.8 Ensure transferred, excess, unusable, or idle OM&S are timely and properly recorded. (FAM 395B: 2, 9, 10) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation Existence or Occurrence No

47 2.8.1 Ability to capture the existence and value of OM&S assets in-transit between organizations and/or systems. 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation Existence or Occurrence No

48 2.8.2 Ability to value excess, obsolete, and unserviceable OM&S assets at their estimated net realizable value (NRV), and to recognize as a gain or loss the difference between MAC and NRV. (SFFAS 3, par. 30 and 48) 3/11/2011 5/6/2011 3/11/2011 5/6/2011 0% Unassessed Valuation or Allocation No

49 3 Corrective Actions 1/1/1998 6/30/2011 1/1/1998 6/30/2011 99% No

50 3.1 Design Audit-Ready Environment 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

51 3.1.1 Design solution to mitigate deficiencies for control activities, processes and/or systems that meet the objectives defined using process flows and narratives, CONOPS, systems requirements, and policies and procedures 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

52 3.1.2 Design solution to mitigate deficiencies in supporting documentation that meet the objectives defined 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

53 3.2 Develop Corrective Action Plan 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

54 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 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

55 3.2.2 Update Financial Improvement Plan with Specific Corrective Actions 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

56 3.3 Resourcing 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

57 3.3.1 Develop budget estimates of required resources to execute implementation plans, including FTEs and funds for contractor assistance 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

58 3.3.2 Prepare budget justification materials and Program Budget Decision (PBD) documents 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

59 3.4 Execute 1/1/1998 6/30/2011 1/1/1998 6/30/2011 100% No

60 3.4.1 Ensure categorization of OM&S - Military Equipment 9/30/2003 12/9/2008 9/30/2003 12/9/2008 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

61 3.4.2 Categorize operating materials and supplies (Military Equipment) (1) held for use, (2) excess, obsolete and unserviceable or (3) held for repair (SFFAS # 3, par. 37) - REMIS 12/1/2003 12/25/2007 12/1/2003 12/25/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

62 3.4.3 Establish condition codes in REMIS 12/1/2003 12/26/2007 12/1/2003 12/26/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

63 3.4.4 Recognize and report operating materials and supplies (Military Equipment) as assets when produced or purchased (SFFAS # 3, par. 38) - REMIS 12/1/2003 12/25/2007 12/1/2003 12/25/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

64 3.4.5 Apply the consumption method of accounting for the recognition of expenses for operating materials and supplies (Military Equipment) (Audit Opinion 2002) - REMIS 12/1/2003 12/26/2007 12/1/2003 12/26/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

65 3.4.6 Confirm existence of reported Cruise missiles and subscale aerial targets assets in REMIS. 4/15/2005 9/27/2007 4/15/2005 9/27/2007 100% No AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

66 3.4.7 Develop a method for confirming physical inventories are taken on a regular basis resulting in complete and accurate records in REMIS. 4/15/2005 9/27/2007 4/15/2005 9/27/2007 100% No AF/A4LX OC-ALC LAUER; CHRISTOPHER,ROBINSON; RAYCHON

67 3.4.8 Identify all financial events that can affect the baseline balance - OM&S - Military Equipment Items - REMIS 12/1/2003 12/25/2007 12/1/2003 12/25/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

68 3.4.9 Determine the cost flow assumption method (MAC applies) used to determine historical cost of ending OM&S (Military Equipment) and cost of goods consumed (SFFAS # 3, par. 44). - REMIS 9/30/2003 3/30/2005 9/30/2003 3/30/2005 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

69 3.4.10 Identify method to obtain acquisition cost with which to compute MAC for cruise missiles and identified aerial target drones - REMIS 12/1/2003 12/25/2007 12/1/2003 12/25/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

70 3.4.11 DCEM: Acquisition cost reporting policy was researched. 10/1/2004 12/29/2006 10/1/2004 12/29/2006 100% No AF/A4LX LAUER; CHRISTOPHER,ROBINSON; RAYCHON

71 3.4.12 Develop and publish AFI policy to ensure that OM&S-ME (Targets/drones/cruise missiles) acquisition costs are properly recorded into REMIS 9/30/2008 9/28/2009 9/30/2008 9/28/2009 100% Yes AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

72 3.4.13 Generate financial transactional data and forward to the accounting system - OM&S - Cruise Missiles - REMIS 12/1/2003 10/23/2007 12/1/2003 10/23/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

73 3.4.14 Interface REMIS (G099) with DFAS-DE accounting systems (GAFS-R) 12/1/2003 7/31/2006 12/1/2003 7/31/2006 100% No AF/A4LX MSG/MAR, AFMC/FM LAUER; CHRISTOPHER,ROBINSON; RAYCHON

74 3.4.15 Reconcile subsidiary data to accounting system - OM&S - Military Equipment Items - REMIS 6/20/2005 5/1/2006 6/20/2005 5/1/2006 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

75 3.4.16 Identify transaction codes for cruise missiles and identified aerial target drones - REMIS 12/1/2003 5/31/2005 12/1/2003 5/31/2005 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

76 3.4.17 Ensure Reliability and Maintainability Information System (REMIS) (G099) is CFO compliant 1/1/1998 3/29/2007 1/1/1998 3/29/2007 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

77 3.4.18 Conduct REMIS Blue Book (DFAS 7900.4G) initial review with program office to determine applicable requirements. 5/5/2009 5/6/2009 5/5/2009 5/6/2009 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

78 3.4.19 DCEM: Test internal controls to ensure that corrective actions have been effectively implemented. 5/5/2009 6/30/2011 5/5/2009 6/30/2011 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

79 3.4.20 DCEM: Complete assertion package for drones, aerial targets, and cruise missiles, as reported by the Reliability and Maintainability Information System (REMIS) 5/5/2009 6/30/2011 5/5/2009 6/30/2011 100% No AF/A4LX SAF/FMPA LAUER; CHRISTOPHER,ROBINSON; RAYCHON

80 4 Evaluation 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

81 4.1 Testing 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

82 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. 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

83 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) 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

84 4.2 Decision 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

85 4.2.1 If Testing indicates corrective actions were successful, proceed to Assertion Phase 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

86 4.2.2 If update testing indicates material deficiencies are not fully addressed, return to step 1.5.1 under Evaluation and Discovery to redefine objectives of "to-be" solution and then initiate corrective action 6/29/2011 6/30/2011 6/30/2011 6/30/2011 0% No

87 5 Assertion 6/1/2011 6/30/2011 6/1/2011 6/30/2011 0% No

88 5.1 Compile process, control, and system documentation 6/1/2011 6/30/2011 6/1/2011 6/30/2011 0% No

89 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 6/1/2011 6/30/2011 6/1/2011 6/30/2011 0% No

90 5.2 Compile supporting documentation 6/1/2011 6/30/2011 6/1/2011 6/30/2011 0% No

91 5.2.1 Compile Evaluations of Test Results, demonstrating sufficient and appropriate supporting documentation exists to assert audit readiness 6/1/2011 6/30/2011 6/1/2011 6/30/2011 0% No

92 6 Sustainment 10/3/2011 9/29/2017 10/3/2011 9/29/2017 0% No

93 6.1 FY12 10/3/2011 9/28/2012 10/3/2011 9/28/2012 0% No

94 6.1.1 Ongoing Testing as part of ICOFR activities 10/3/2011 9/28/2012 10/3/2011 9/28/2012 0% No

95 6.1.1.1 Prepare process flows, narratives, control worksheets, test plans, control assessments, with test results, and statement of assurance 10/3/2011 9/28/2012 10/3/2011 9/28/2012 0% No

96 6.1.2 Ongoing Remediation for deficiencies noted during ICOFR activities 10/3/2011 9/28/2012 10/3/2011 9/28/2012 0% No

97 6.1.3 Ongoing Implementation of corrective action in response to deficiencies noted during ICOFR activities 10/3/2011 9/28/2012 10/3/2011 9/28/2012 0% No

98 6.1.3.1 Update Financial Improvement Plan in FIAR tool 10/3/2011 9/28/2012 10/3/2011 9/28/2012 0% No

99 6.2 FY13 10/1/2012 9/30/2013 10/1/2012 9/30/2013 0% No

100 6.2.1 Ongoing Testing as part of ICOFR activities 10/1/2012 9/30/2013 10/1/2012 9/30/2013 0% No

101 6.2.1.1 Prepare process flows, narratives, control worksheets, test plans, control assessments, with test results, and statement of assurance 10/1/2012 9/30/2013 10/1/2012 9/30/2013 0% No

102 6.2.2 Ongoing Remediation for deficiencies noted during ICOFR activities 10/1/2012 9/30/2013 10/1/2012 9/30/2013 0% No

103 6.2.3 Ongoing Implementation of corrective action in response to deficiencies noted during ICOFR activities 10/1/2012 9/30/2013 10/1/2012 9/30/2013 0% No

104 6.2.3.1 Update Financial Improvement Plan in FIAR tool 10/1/2012 9/30/2013 10/1/2012 9/30/2013 0% No

105 6.3 FY14 10/1/2013 9/30/2014 10/1/2013 9/30/2014 0% No

106 6.3.1 Ongoing Testing as part of ICOFR activities 10/1/2013 9/30/2014 10/1/2013 9/30/2014 0% No

107 6.3.1.1 Prepare process flows, narratives, control worksheets, test plans, control assessments, with test results, and statement of assurance 10/1/2013 9/30/2014 10/1/2013 9/30/2014 0% No

108 6.3.2 Ongoing Remediation for deficiencies noted during ICOFR activities 10/1/2013 9/30/2014 10/1/2013 9/30/2014 0% No

109 6.3.3 Ongoing Implementation of corrective action in response to deficiencies noted during ICOFR activities 10/1/2013 9/30/2014 10/1/2013 9/30/2014 0% No

110 6.3.3.1 Update Financial Improvement Plan in FIAR tool 10/1/2013 9/30/2014 10/1/2013 9/30/2014 0% No

111 6.4 FY15 10/1/2014 9/30/2015 10/1/2014 9/30/2015 0% No

112 6.4.1 Ongoing Testing as part of ICOFR activities 10/1/2014 9/30/2015 10/1/2014 9/30/2015 0% No

113 6.4.1.1 Prepare process flows, narratives, control worksheets, test plans, control assessments, with test results, and statement of assurance 10/1/2014 9/30/2015 10/1/2014 9/30/2015 0% No

114 6.4.2 Ongoing Remediation for deficiencies noted during ICOFR activities 10/1/2014 9/30/2015 10/1/2014 9/30/2015 0% No

115 6.4.3 Ongoing Implementation of corrective action in response to deficiencies noted during ICOFR activities 10/1/2014 9/30/2015 10/1/2014 9/30/2015 0% No

116 6.4.3.1 Update Financial Improvement Plan in FIAR tool 10/1/2014 9/30/2015 10/1/2014 9/30/2015 0% No

117 6.5 FY16 10/1/2015 9/30/2016 10/1/2015 9/30/2016 0% No

118 6.5.1 Ongoing Testing as part of ICOFR activities 10/1/2015 9/30/2016 10/1/2015 9/30/2016 0% No

119 6.5.1.1 Prepare process flows, narratives, control worksheets, test plans, control assessments, with test results, and statement of assurance 10/1/2015 9/30/2016 10/1/2015 9/30/2016 0% No

120 6.5.2 Ongoing Remediation for deficiencies noted during ICOFR activities 10/1/2015 9/30/2016 10/1/2015 9/30/2016 0% No

121 6.5.3 Ongoing Implementation of corrective action in response to deficiencies noted during ICOFR activities 10/1/2015 9/30/2016 10/1/2015 9/30/2016 0% No

122 6.5.3.1 Update Financial Improvement Plan in FIAR tool 10/1/2015 9/30/2016 10/1/2015 9/30/2016 0% No

123 6.6 FY17 10/3/2016 9/29/2017 10/3/2016 9/29/2017 0% No

124 6.6.1 Ongoing Testing as part of ICOFR activities 10/3/2016 9/29/2017 10/3/2016 9/29/2017 0% No

125 6.6.1.1 Prepare process flows, narratives, control worksheets, test plans, control assessments, with test results, and statement of assurance 10/3/2016 9/29/2017 10/3/2016 9/29/2017 0% No

126 6.6.2 Ongoing Remediation for deficiencies noted during ICOFR activities 10/3/2016 9/29/2017 10/3/2016 9/29/2017 0% No

127 6.6.3 Ongoing Implementation of corrective action in response to deficiencies noted during ICOFR activities 10/3/2016 9/29/2017 10/3/2016 9/29/2017 0% No

128 6.6.3.1 Update Financial Improvement Plan in FIAR tool 10/3/2016 9/29/2017 10/3/2016 9/29/2017 0% No

129 7 Validation 7/1/2011 12/31/2012 7/1/2011 12/31/2012 0% No

130 7.1 Assertion Documentation Review 7/1/2011 12/31/2012 7/1/2011 12/31/2012 0% No

131 7.1.1 A 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 7/1/2011 12/31/2012 7/1/2011 12/31/2012 0% No

132 7.2 Assertion Examination 7/1/2011 12/31/2012 7/1/2011 12/31/2012 0% No

133 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 7/1/2011 12/31/2012 7/1/2011 12/31/2012 0% No

134 8 Audit 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

135 8.1 Engage Auditor 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

136 8.1.1 Issue RFP and award contract to IPA (via the DoD OIG) to assist with/perform the annual financial statement audit 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

137 8.2 Support Audit 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

138 8.2.1 Perform audit coordination activities, participating in meetings to provide background information 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

139 8.2.2 Collect and provide documentation for all auditor requests within established time requirements 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

140 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) 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

141 8.3 Auditor Issues Audit Opinion 1/3/2012 12/31/2012 1/3/2012 12/31/2012 0% No

User Name: EXTERNAL\Michael_Wochomurka

Timestamp: Thursday, January 26, 2012 11:51:37 AM image3.emf

Spare Engines FIP 01.26.12 Grid Data

Project Details: Spare Engines

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 Text 26 Text 27 Text 28 Text 29 Text 30

1 1 Evaluation & Discovery 6/1/2011 4/27/2012 NA NA 95% No

2 1.1 Statement to Process Analysis 10/3/2011 10/11/2011 NA NA 100% No

3 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 10/10/2011 NA NA 100% No SAF/FMPA AF/A4LX

4 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 10/4/2011 10/11/2011 NA NA 100% No SAF/FMPA…