DEPARTMENT OF THE NAVY Financial Improvement Program

1. DEPARTMENT OF THE NAVYFinancial Improvement Program DON FIP Update: The Achilles Heels of DON Audit Readiness 6 January 2010

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3. 3 Vulcan Mind Meld

4. 4 DON FIP�s Achilles Heel DON�s Impediments to Success Source Document Retention SOLUTION: Guidance, Source Document Catalog Culture and Change Management Requirements SOLUTION: Guidance, Training Legacy Systems Environment SOLUTION: Navy ERP, Interfaces i.e. STARS/WAWF interface Human Capital Right person, right place, right time SOLUTION: Resources, Training

5. 5 Achilles Heels in Perspective

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7. 7 Source Document Examples from DON In the context of the DON: System Automation: Interface core systems: Links between SPS (Contract), WAWF (Receiving Report and Invoice) and Navy ERP (Accounting Transactions: Obligation, Accounts Payable, Disbursement) to automatically store and transfer key documents Source Document Catalog: Filing Schema: The development of an Enterprise-wide filing mechanism will improve performance in an audit by making documentation more easily retrievable Practice Makes Perfect: Internal Controls Testing: Through self-executed testing, Commands become more familiar with retrieving source documents for future audit NAVAUDSVC Review: The experience of a 3rd party sampling and requesting source documents improves Command response times and simulates an audit scenario

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9. 9 Change Management Examples from the DON In the Context of the DON Awareness: Continue to leverage communication tools to �get the word out� Examples: FIP TA Work Group, FIP Conference, Memorandum of Agreement Desire: Demonstrate that the org will support change through FIP funding and tailored support Examples: FIP Funding, Command Site Visits Knowledge: Provide the Guidance and leadership Examples: Tool Kits, Facilitated Sessions, Guidance Team and Policy Memos Ability: Implement the knowledge and skills Examples: Fund SCRs for system interfaces (WAWF to Accounting Systems), develop and distribute training courses (Training Day), PDI Attendance Reinforcement: Sustain the change through reinforcement mechanisms Examples: Command self-executed testing, NAVAUDSVC reviews, Metrics Reporting

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13. 13 Human Capital in DON Context In the Context of the DON Resources: Provide FTEs to perform internal control testing to ensure long term sustainment Fund support staff to assist with remediation issues Training: Ensure workforce has the training/certifications to execute the task DPAS WAWF SPS ERP Etc�

14. 14 Perspective: Glass Half Full or Half Empty

15. 15 Achilles Heels in Perspective

16. 16 Wrap-up slide We�ve come a long way over the tenure of the FIP and in the process we�ve made significant progress towards our audit readiness goals as noted by OUSD(C), GAO, and other stakeholders We have a well-defined model based on the implementation of internal controls to mitigate risk and internal control testing to determine effectiveness By targeting our pain points and focusing our efforts, we can achieve success My overarching recommendation is this: leverage systems solutions, recognize our existing limitations and build around them, practice for the end game, support change with resources and constant communication and remember that sustainment is only possible through the implementation of effective internal controls

17. 17 DON FIP Management Tool https://www.fmosystems.navy.mil/fip To request a login, complete the New User form found by clicking the New User button on the Login screen