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Introduction Reconciliation of Funding Ceilings. Audit Readiness.
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Audit Readiness The challenges of financial management at the Department of Defense (DoD) has been well documented. Neither the Department nor the Military Services has successfully passed the scrutiny of an independent audit. As a result, each Service has been directed by the Under Secretary of Defense (Comptroller) (USDC(C)) to undertake efforts to provide financial information with greater reliability, accuracy, and timeliness. A critical factor in these efforts at the Navy is the Financial Improvement Program (FIP). The Naval Sea Systems Command (NAVSEA) FIP represents a series of Department of the Navy (DoN)-wide and command-specific efforts designed to enhance internal controls, standardize processes, and obtain an unqualified audit opinion. The following training material is a part of that effort to provide the NSWC Carderock community an overview of key internal controls for Property, Plant and Equipment in preparation for a financial audit.
Potential Weaknesses and Deficiencies This module explains the steps and documentation necessary for the appropriate personnel to reconcile funding to PBIS data by general ledger account and appropriation data, and to ensure the status of budgetary resources at the activity and command levels does not exceed the funding ceiling set by the FMB. Budgetary authority in command general ledgers may be inaccurate. Funding authority may not be approved by appropriate individual(s) designated in writing in accordance with management’s general/specific criteria. Approved FAD may be inaccurately entered in the accounting system. Execution may exceed funding authority.
Module Assessment Quiz Module Review
Performance The performance of this control is monthly
Control Description Commands perform monthly reconciliations of funding by general ledger account and appropriation to PBIS data to ensure the status of budgetary resources at the activity and command levels do not exceed funding ceiling by FMB. These reconciliations are submitted to FMB 5, DFAS, and FMO for review. FMB reviews reconciliations collectively to ensure ADA violations have not occurred. This review is evidenced by signature and date on the reconciliation. (Manual/Detective)
References - • Funding Authorization Documents –FADs • ERP ZFRS01 Fund Allocation Report -
Methodology As part of the FIP sustainment effort, NAVSEA HQ and the GF field activities comptroller departments need to implement the following steps to mitigate any potential risks associated with this process.
