FM FIAR Industry Day 12NOV2025.pdf

Department of the Air Force

Financial Management FIAR

Industry Day

Welcome

◼ Agenda

◼ Opening remarks

◼ FM FIAR Program Overview/What’s Gone well/DAF Audit Challenges

◼ FM FIAR Program Overview

◼ Overview of current roadmap (living document)

◼ Review/Discuss Draft PWS

◼ Review/Discuss Draft Acquisition Strategy

◼ Next Steps

◼ Please Note:

◼ Requirements subject to modification based on evolving audit conditions & government direction

◼ Acronyms can be found on slides 23 - 24

Ms. Lara C. Sayer

Principal Deputy Assistant Secretary of the Air Force

Financial Management and Comptroller

Opening Remarks

◼ Financial Audits have the SECWAR and SECAF Focus

◼ This is one of my Top Priorities

◼ Accountability to the Taxpayer

"Success in achieving a clean audit opinion by 2027 will require a unified enterprise-wide focus and renewed commitment.

Your dedication and active participation will be critical to our success.

I am confident that if we take aggressive steps to address the critical audit remediation efforts, we will accelerate action to achieve a clean audit opinion by 2027, ahead of the

2028 congressional mandate."

Mr. Michael W. Smiley

Associate Deputy Assistant Secretary (Financial Operations)

FM FIAR Program Overview

◼ Comprehensive beginning-to-end support for audit remediation, sustainment, & financial statement reporting

◼ Contract supports SAF/FM (DAF for GF), AFMC for DAF WCF, & DSCA audit remediation efforts

◼ #1 Objective is achieving unmodified (clean) audit opinions by accelerated timelines

◼ DAF GF: Clean opinion by FY2027

◼ DAF WCF: Clean opinion by FY2027

◼ Potentially 2-year audit

◼ DSCA: Clean opinion by FY2028

6Data provided by SAF/FM & is current as of 01OCT2025

What’s Gone Well

◼ Leadership Commitment

◼ Audit Executive Steering Committee chaired by USecAF and MAJCOM/FLDCOM Deputy

Commanders attend

◼ Key Focus Areas

◼ The path to a clean opinion is well defined, just needs to be executed

◼ Sustainment

◼ Successfully sustained Funds Balance with Treasury and Military Equipment material weakness downgrades

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

DAF Audit Challenges

◼ Siloed Systems (GF & WCF)

◼ Disconnected financial feeder systems with poor data quality

◼ Beginning Balances (GF & WCF)

◼ Lack of Existence and Completeness and Valuation for General Equipment, Operating Materials and Supplies, and Inventory

◼ Contractor held Inventory (GF & WCF)

◼ Lack of Existence and Completeness, Valuation, and Reporting

◼ DLA held Inventory (WCF)

◼ Lack of Existence and Completeness, Valuation, and Reporting

Ms. Jennifer McCann

Director, Financial Reporting and Compliance

Overview of Current Roadmap (Living Document)

One Team, One Fight!

Audit Roadmaps

FY22 FY23 FY24 FY25 FY26FY21

Accounts Payable, Expenses, and

Accounting for

Contract Financing

Payments (SAF/FM)

Other General

Equipment (AF/A4)

Real Property

(AFCEC)

Financial Information

Systems (SAF/FM)

Operating Materials

& Supplies (AF/A4)

Integration and

Reconciliation of

Financial Systems

(SAF/FM)

Property and Materials

Held by Others

(AF/A4)

Entity-Level

Controls (SAF/FM)

Contingent

Legal Liabilities

(AF/JA)

Internal Controls

A-123

(SAF/FM)

AUDIT

OPINION

Fund Balance with Treasury

(SAF/FM)

FY22 FY23 FY24 FY25 FY26 FY27 FY28FY21

Inventory Held by DAF WCF

(AF/A4)*

Oversight and

Monitoring of

Internal

Control (A-

123)

(SAF/FM)**

Inventory

Held by

Others

(AF/A4)*

Earned

Revenue

(SAF/FM)**

Accounts

Payable, Gross Costs and Contract

Financing

Payments

(SAF/FM)

Financial

Information

Systems

(SAF/FM)

Integration and

Reconciliation of Systems

(SAF/FM)**

GPP&E, Net

(AF/A4)*

Fund

Balance with

Treasury

(AFMC/FM)

Entity-Level

Controls

(SAF/FM)**

* Delegated to AFMC/A4/10 ** Delegated to AFMC/FM

General Fund

AUDIT

OPINION

Working

Capital Fund

Military

Equipment

(SAF/AQ)

GPP&E, Net

(AF/A4)

Reimbursable

Programs (SAF/FM)

Contingent

Legal

Liabilities

(AF/JA)

Material Weakness or Significant

Deficiency Closure

Material Weakness Anticipated

ClosureL E

G E

N D

Material Weakness to Significant

Deficiency downgrade

Significant Deficiency Anticipated

Closure

Environmental &

Disposal Liabilities

(AFCEC)

DRAFT

As of 31 OCT 2025

Ms. Theresa Terry

Director, Enterprise Program Solutions

Review/Discuss Draft PWS

Department of the Air Force

Draft Acquisition Strategy

Informational

◼ All information provided in these charts is in DRAFT form. The purpose of this is to receive feedback from industry on the DRAFT acquisition strategy

◼ Any teaming arrangements or money spent preparing proposals or responses is at the sole discretion of any potential offeror or organization and is not the responsibility of the government

◼ Releasing this DRAFT does not obligate the Government to any subsequent contract action or guarantee thereof

◼ Any feedback or information provided from industry may be considered

◼ Please send any feedback or comments to:

◼ Program Manager - Ms. Jenn McCann, jennifer.mccann.3@us.af.mil

Draft Acquisition Strategy

◼ FAR Parts 8, 12

◼ GSA MAS – Multiple Award BPA

◼ Customers: SAF/FM (includes Space Force), DSCA, AFMC

◼ Potential to expand to DAF-wide

◼ Competitive – Full and Open Competition

◼ Contract Type: Firm Fixed Price

◼ NACIS: 541211 (Discussion Point)

◼ PSC: R499 (Discussion Point)

Evaluation Steps

Evaluation Area: Assessment Type: Criteria / Focus Areas:

Step 1:

Technical Expertise w/ Federal Agencies

Written

See Scoring Matrix, Minimum

Score 70

• Depth of FIAR Experience

• Agency Size & Complexity

• Specific Audit Areas

• References

• Experience w/ Federal Audits

• FIAR IT Expertise

• Internal Control Expertise

Step 2:

Technical Methodology

Oral

Technically Acceptable:

3 or less weakness

Technically Unacceptable:

4 or more Weakness

• Audit Readiness Methodology

• Knowledge Transfer

• Integration of Price Proposal into Audit Approach

Step 2:

Small Business Participation Plan

Written

Acceptable/Unacceptable

• The extent to which such firms are specifically identified in proposals

• The complexity and variety of the work small firms are to perform

Step 2:

Price

Written

• Fair

• Reasonable

• Balanced

• Labor Categories in accordance with GSA MAS Schedule

• Any discounts

Step 1: Technical Experience

(Written)

◼ This is a GATE

◼ Shall have SECRET Facility Clearance at RFP Release

◼ Must meet minimum score to advance to Step 2

◼ Submissions must have been performed within the last 3 years from the date of issuance of RFP

◼ Provide 3 experience examples demonstrating managing 3 call orders/contracts simultaneously with a minimum of 50 FTEs (can be a separate submission of 3)

◼ Provide 3 experience examples supporting any federal agency(ies)

◼ Will validate through provided POC

◼ Validate proposed experience and validate success

◼ Through performance of all 8 PWS tasks

◼ Minimum Matrix Score: 75

PWS Task 1 2 3 4 5 6 7 8

Example 1 X X X X

Example 2 X X X X X

Example 3 X X

Step 1: Technical Experience Matrix

Reference Contract

Number(s)

Reference PWS

Paragraph (where applicable) Element High Medium Low

No

Submission

Max. Possible

Points

Past Performance 5 3 1 0 100

General

Managing three (3) contracts/call orders/task orders simultaneously with at least 50 FTEs (each) - Can submit 3 separate examples that are non-FIAR related. 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Federal audit support contracts providing support with 150 or more FTEs (DoW examples gain 1 extra point each) 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Federal audit support contracts supporting audit of an organization with an annual budget of over $100B 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Audit support contracts that have supported all PWS tasks (Across 3 examples) Cover 8 PWS tasks

Cover 7 PWS tasks Cover 6 PWS tasks 0/3 Examples

Number of material weaknesses downgraded or remediated 10 5 3 0

Audit Administration and Support

Prepared executive briefings at the Congressional, Office of the Secretary of War (OSW), Office of the Secretary of the Air Force (SECAF) or equivalent level 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Cradle to grave support working notice of findings and recommendations (NFRs); identifying root cause, developing corrective action plans (CAPs), and implementing remediation activities

3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Engaged with the IPA Auditors and assisting in discussions, documenting meeting minutes, decision points, action items, and requests for documentation 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Financial Mission Support

Developed quarterly Statement of Assurance (SoA) deliverables 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Developed and maintained Process Cycle Memorandums (PCMs), control documentation, and documenting end-to-end DoD business processes to include, but not limited to procure-to-pay (P2P) and order-to-cash (O2C).

3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Developed and managed Integrated Master Schedules (IMS) with detailed audit project plans 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Tested process level controls, entity level controls, and fraud and risk controls, conducting walkthroughs, test of design, test of operating effectiveness & substantive procedures and documenting within ServiceNow

3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Assessed third-party service providers for materiality, scope, risk assessment and mitigation 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Developed and published annual Agency Financial Reports (AFRs) including formulation of the Balance Sheet, Statement of Changes in Net Position, Statement of Net Cost, and Statement of Budgetary Resources, footnote schedules and disclosures utilizing the Defense Departmental Reporting System (DDRS).

3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Reconciled financial data across multiple General Ledger and feeder systems to include, but not limited to legacy, Enterprise Resource Planning (ERP), and logistic systems

3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Reviewed journal vouchers at the general ledger level as well as reporting level to ensure compliance with the Treasury Financial Manual 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Provided system posting logic updates as required to become DoD Standard Financial Information Structure (SFIS) compliant 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Analyzed General ledger trial balances to include Treasury tie-point reconciliations, abnormal balances, fluctuation analysis, and variance remediation 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Technical

Utilized or developed reconciliations in the OSD Advana platform to include, but not limited to, using databricks and python 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Updated, maintained, and sustained audit tools, to include tools to answer auditor requests, process NFRs, schedule and coordinate site visits 3/3 Examples 2/3 Examples 1/3 Examples 0/3 Examples

Step 2: Technical Approach

(Oral) If advance past the Gate (Step 1)

Audit Readiness Methodology: How does the firm approach audit readiness? Provide detailed description of their process, including assessment, gap analysis, remediation, testing, and documentation. It should align with our DAF FIAR roadmap but offer potential improvements. Provide innovative solutions incorporating improvements in efficiencies and effectiveness.

◼ Knowledge Transfer: How do you ensure your staff gains the knowledge and skills needed to achieve a clean audit opinion and sustain a clean audit opinion after the engagement ends?

◼ Integration of price proposal into audit approach: Explain pricing approach from a technical expert. The contractor can provide such information as quantities of licenses, savings from automation, or and any other information to support your pricing.

◼ DO NOT INCLUDE any dollar amounts or cost elements such as profit, G&A, Overhead, etc.

◼ Small Business Participation Plan (applicable to all offerors)

◼ Provide annual minimum quantitative requirement (MQR) percentage for small businesses concerns and explain how they intend to meet the proposed MQR percentages for the overall BPA

◼ SB, WOSB, SDVOSB, HubZone, VOSB, SDB

Step 2: Technical Approach

Price - Written

Price (Written)

◼ Fair, Reasonable, Balanced

Next Steps

◼ 19 Nov – LIVE Draft RFP review with Industry

◼ Discussion on RFP Released Date and Submittal

◼ RFP Released

◼ 28 Nov 25

◼ Proposal Submittals

◼ 19 Dec 25

◼ Oral Presentations

◼ Week of 5 Jan 26

Acronyms (1 of 2)

◼ AAP Accelerated Audit Plan

◼ ADVANA Advancing Analytics

◼ AFAA Air Force Audit Agency

◼ AFLCMC Air Force Life Cycle Management Center

◼ AFMC Air Force Material Command

◼ AFM Automated Funds Management

◼ AFR Agency Financial Report

◼ AI/ML Artificial Intelligence/Machine Learning

◼ APSR Accountable Property System of Record

◼ AU Assessable Unit

◼ A123 OMB Circular No. A-123

◼ CAP Corrective Action Plan

◼ CFO Chief Financial Officer

◼ CMCS Case Management Communications System

◼ CRIS Commanders' Resource Integration System

◼ DAF Department of the Air Force

◼ DEAMS Defense Enterprise Accounting & Management System

◼ DoD Department of Defense

◼ DSCA Defense Security Cooperation Agency

◼ FBwT Fund Balance with Treasury

◼ FIAR Financial Improvement & Audit Readiness

◼ FISCAM Federal Information System Control Audit Manual

◼ FRPG Financial Reporting Policy Group

◼ GAFS-BQ General Accounting & Finance System- Base Level

◼ GAFS-R General Accounting and Finance System –Reengineered

◼ GAO Government Accountability Office

◼ GE General Equipment

◼ GF General Fund

◼ GL General Ledger

◼ GPP&E General Plant, Property & Equipment

◼ IPA Independent Public Accountant

◼ IT Information Technology

◼ JSF Joint Strike Fighter

◼ JV Journal Voucher

◼ MD&A Management’s Discussion & Analysis

◼ ME Military Equipment

◼ MEV Military Equipment Valuation

◼ MOU Memorandum of Understanding

◼ MRL Management Representation Letter

◼ NIST National Institute of Standards & Technology

◼ NFR Notice of Findings & Recommendations

◼ ODCFO Office of the Deputy Chief Financial Officer

◼ OMB Office of Management & Budget

◼ OM&S Operating Materials & Supplies

◼ PEO Program Executive Officer

◼ R&D Research & Development

◼ RMIC Risk Management & Internal Control

◼ RPA Robotic Process Automation

◼ SAF/FM Assistant Secretary of the Air Force

(Financial Management and Comptroller)

Acronyms (2 of 2)

◼ SAMIS Security Assistance Management Information System

◼ SDA Space Development Agency

◼ SFFAS Statements of Federal Financial Accounting Standards

◼ SoA Statement of Assurance

◼ SOP Standard Operating Procedure

◼ SSC Space Systems Command

◼ UoT Universe of Transactions

◼ USAF United States Air Force

◼ USSF United States Space Force

◼ VAULT Visible Accessible Understandable Linked and Trusted

◼ WCF Working Capital Fund