AFLCMC_FIAR_Training _26_Jul_16.pptx

Financial Improvement and Audit Readiness (FIAR)

Mr Colquitt “Quitty” Lawrence

AF/A4LR

26 July 2016

Accountability from Flightline to Bottomline

Headquarters U.S. Air Force

Background Chief Financial Officer (CFO) Act of 1990 Established a required financial management structure and position of CFO within federal agencies Government Management Reform Act of 1994 (GMRA) Established requirement for annual audited agency-level financial statements Federal Financial Management Improvement Act of 1996 (FFMIA) Ensure “that Federal financial management systems provide accurate, reliable, and timely financial management information to the government’s managers”

CFO act was beginning of financial reform in the federal government CFO act established the position of CFO within 24 executive agencies and required them to prepare financial statements GMRA extended the required of audited financial statements to all federal agencies FFMIA requires agencies to maintain systems that comply with federal accounting standards and the USSGL

SECDEF on Audit Readiness “One key to making a budget work in any fiscal environment, but especially now will be streamlining overhead, eliminating waste, and improving our business practices—ensuring that we are operating in a common sense, accountable, and modern business environment” “All hands” effort across DoD Accelerate SBR audit readiness from 2017 to 2014 Plan in 60 days 2-Letter tiger team

It’s Real FIAR! VCSAF says…

“This is a an enterprise-wide effort that demands the determined commitment of leadership” “…improve our audit readiness plans, identifying opportunities to accelerate work and transition from headquarters to base-level activities” “…we are counting on you to assist in process reviews, respond to audit requests, and lead these critical efforts”

“Air Force leadership is committed to achieving audit readiness and we are counting on you to assist in process reviews, respond to audit requests and lead these critical efforts.” General Breedlove and Ms Conaton

Questions?

Government Furnished Property

Government Furnished Property (GFP) Government Furnished Property Property owned by the Government and provided or in the hands of a contractor Same property used by the Government Government Furnished Equipment (GFE) Test benches/sets, mock-ups, jacks, etc..

Government Furnished Materiel (GFM) Nuts, bolts, power supplies, amps, etc…

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 resolution of differences). Physical inventory counts must include sufficient statistical coverage of the population and comply with applicable requirements (e.g., DoDI 5000.64, Enclosure 3, Section 11) 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 differences). Physical inventory counts must include sufficient statistical coverage of the population and comply with applicable OUSD(AT&L) requirements.

Detailed listing of all assets from APSRs Summary schedule reporting the amounts/quantities by class of assets Reconciliation of the summary schedule of assets to the general ledger.

Policies and procedures relevant to the assets, demonstrating the consistency of accounting treatment across all years presented Written definitions of asset classes and assessable units 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.

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

Statement of Work Contract clauses that define who owns assets and when Reporting Entity takes possession Purchase Orders Receiving report or other acceptance document (e.g., DD250 (Materiel Inspection and Receiving Report) or DD1354 (Transfer and Acceptance of DoD Real Property) Deeds/titles (for Land only) Lease, Occupancy Agreement, Reversion Legal Document, Judgment Legal Document (for condemnation), Letter of Withdrawal (for withdrawal from Public Domain) Asset logs (e.g., maintenance logs or usage logs) that are reconciled to the APSR, demonstrating the completeness of the APSR population 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 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 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 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 the Reporting Entity's name (or other coding or naming conventions) that demonstrate the Reporting Entities control over the asset Other evidence of exclusive rights to use assets

Contractor Acquired Property (CAP) Contractor Acquired Property Property acquired by the contractor Government has title No accountability responsibility Becomes Government property when delivered and accepted – DD 250 Process

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 resolution of differences). Physical inventory counts must include sufficient statistical coverage of the population and comply with applicable requirements (e.g., DoDI 5000.64, Enclosure 3, Section 11) 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 differences). Physical inventory counts must include sufficient statistical coverage of the population and comply with applicable OUSD(AT&L) requirements.

Detailed listing of all assets from APSRs Summary schedule reporting the amounts/quantities by class of assets Reconciliation of the summary schedule of assets to the general ledger.

Policies and procedures relevant to the assets, demonstrating the consistency of accounting treatment across all years presented Written definitions of asset classes and assessable units 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.

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

Statement of Work Contract clauses that define who owns assets and when Reporting Entity takes possession Purchase Orders Receiving report or other acceptance document (e.g., DD250 (Materiel Inspection and Receiving Report) or DD1354 (Transfer and Acceptance of DoD Real Property) Deeds/titles (for Land only) Lease, Occupancy Agreement, Reversion Legal Document, Judgment Legal Document (for condemnation), Letter of Withdrawal (for withdrawal from Public Domain) Asset logs (e.g., maintenance logs or usage logs) that are reconciled to the APSR, demonstrating the completeness of the APSR population 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 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 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 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 the Reporting Entity's name (or other coding or naming conventions) that demonstrate the Reporting Entities control over the asset Other evidence of exclusive rights to use assets

Government Furnished Property Government Furnished Equipment (GFE) Managed by Government and Contractors Used by Prime and sub contractors Loaned to the contractor Must be accountable in Accountable Property System of Record (Air Force Equipment Management System) FIAR Assessable Unit GFE “To Be” Process published Mar 16; GFE Guidance Memorandum published Apr 16

Government Furnished Property (cont’d) FIAR testing beginning in Oct-Dec 2016 Testing criteria will be provided in August FIAR Assertion – 30 June 2016 FIAR Audit – FY 2018 Government Furnished Materiel Managed by Government or Contractors Used by Prime and sub contractors Must be accountable in Accountable Property System of Record (APSR)

Government Furnished Property (cont’d) GFM-Accountability briefing later FIAR Assessable Unit Contractor Managed and Possessed Spares CFO Reporting FIAR testing beginning in August 2016 Testing criteria provided FIAR Assertion – 30 June 2016 FIAR Audit – FY 2018

Chief Financial Officer (CFO) Reporting Process

CFO Reporting CFO Act of 1990 All Government owned property must be financially reported Accountable Property Systems of Record (APSR)

AFI 23-111

Provides logistics and financial information to accounting systems All property has an APSR CFO Reporting Template (Briefing Provided)

CFO Reporting (cont’d) Begin reporting 4th Quarter 2016 Report is for end of quarter balances Data must be validated by Program Office Provide spreadsheet until program is automated and feeding APSR Documentation and accuracy of information a must for FIAR Report will be used for testing image2.png image3.png image4.emf image1.png