R 261354Z JAN 12

ALCGFINANCE 002/12
SUBJ: MONTHLY FINANCIAL AUDIT STATUS UPDATE - JANUARY 2012
A. ALCOAST 533/11
B. ALCGFINANCE 046/11
C. ALCOAST 717/09
1. THIS IS THE FOURTH IN A MONTHLY SERIES OF ALCGFINANCE MESSAGES
INTENDED TO IMPROVE FINANCIAL AUDIT COMMUNICATIONS AND INFORMATION
SHARING THROUGHOUT THE COAST GUARD.
2. CURRENT STATUS:
	A. THE FISCAL YEAR (FY) 2012 AUDIT READINESS EFFORT CONTINUES.
COAST GUARD REMEDIATION AND INTERNAL CONTROLS TEAMS ARE EXECUTING
THEIR MISSION ACTION PLANS (MAPS) AND ARE COORDINATING WITH FIELD
UNITS TO PREPARE FOR THE ARRIVAL OF DEPARTMENT OF HOMELAND SECURITY
(DHS) OFFICE OF THE INSPECTOR GENERAL (OIG) AUDITORS. REFS A AND B
ARE ILLUSTRATIVE OF THE LARGE AMOUNT OF COMMUNICATION AND OUTREACH
UNDERWAY TO IMPROVE OUR OPEN OBLIGATIONS.
	B. DHS OIG AUDITORS ARE ON TRACK TO ARRIVE AT THE CG TO BEGIN FY
2012 WORK IN MID-LATE FEBRUARY AND BEGIN REACHING OUT TO FIELD UNITS
IN THE MARCH TIME FRAME. AS EMPHASIZED IN REF B, THE FY 2012 AUDIT
WILL NOT ONLY LOOK AT THE SAME AREAS AS LAST YEAR, BUT WILL DEVOTE
SIGNIFICANT ATTENTION TO THE COAST GUARD'S PERSONAL AND REAL PROPERTY
AS PART OF THE FULL SCOPE AUDIT.
	C. IN THE INTERIM, A VERY SMALL GROUP OF OIG AUDITORS ARE WORKING
WITH THE COAST GUARD TO RE-OPEN SOME FY 2011 FINANCIAL STATEMENT
WORK. THE GOAL OF THIS EFFORT IS TO TRY AND SUPPORT YEAR-END BALANCES
FOR LINE ITEMS THE AUDITORS DID NOT HAVE TIME TO REVIEW IN FY 2011,
INCLUDING SOME PROPERTY AREAS AND THE STATEMENT OF BUDGETARY
RESOURCES. THIS REVIEW WILL RUN IN PARALLEL WITH OUT FY12 AUDIT
READINESS WORK AND THE FIRST PREPARED BY CLIENT (PBC) REQUEST FROM
THE AUDITORS HAVE ALREADY BEEN RECEIVED.
3. MONTHLY AUDIT TIPS: ENSURING THAT TRAVEL ORDERS ARE CORRECTLY
ISSUED, TRAVEL FUNDS ARE ACCURATELY MANAGED AND TRAVEL CLAIMS ARE
PAID TO CORRECT OBLIGATIONS ARE VITAL PARTS OF PROPER FINANCIAL
STEWARDSHIP AND WILL BE HEAVILY SCRUTINIZED DURING THE FY 2012 AUDIT.
RECENTLY, THERE HAS BEEN A HIGH INCIDENCE RATE OF MIS-ESTIMATED DOC
11/13 TONOS, FAILURE TO GENERATE OR ENTER TRAVEL ORDERS IN THE
FINANCIAL PROCUREMENT DESKTOP (FPD), INAPPROPRIATE ISSUANCE OF GROUP
TRAVEL ORDERS, AND THE OBLIGATION OF TRAVEL FUNDS FOR NON-TRAVEL
PURPOSES. PSC AND COMDT (CG-8) WILL BE PROMULGATING MORE GUIDANCE IN
THIS AREA IN THE COMING WEEKS.  UNTIL THEN, UNITS CAN BETTER PREPARE
FOR THE AUDIT BY TAKING A CLOSE LOOK AT THEIR DOC 11/13 TONOS,
DEOBLIGATING UNNEEDED ORDERS AND ENSURING ANY "TONO LOGS" MAINTAINED
BY ADMIN SECTIONS ARE RECONCILED TO FPD OBLIGATIONS.
4. AUDIT 101: HERE ARE THE FINANCIAL AUDIT PROFESSIONAL DEVELOPMENT
ITEMS FOR THIS MONTH:
	A. THE RECENT FY 2011 AUDIT FOCUSED ON THE COAST GUARD'S BALANCE
SHEET. THE FOCUS OF THE FY 2012 FULL SCOPE AUDIT WILL EXPAND TO
INCLUDE THE FOLLOWING ADDITIONAL FINANCIAL STATEMENTS:
	(1) THE STATEMENT OF NET COSTS (SNC), WHICH HAS A DIRECT IMPACT ON
THE COAST GUARD'S REVENUES AND EXPENSES AND HOW THEY TIE TO OUR
STATUTORY MISSIONS AND THE DHS STRATEGIC GOALS.
	(2) THE STATEMENT OF CHANGES IN NET POSITION (SCNP), WHICH REPORTS
THE CHANGE OF THE RATIO OF ASSETS TO LIABILITIES FROM YEAR TO YEAR.
	(3) THE STATEMENT OF BUDGETARY RESOURCES (SBR), WHICH PROVIDES
DETAILS ON BUDGETARY RESOURCE HISTORY AND STATUS. THIS GIVES DETAILS
ON THE AMOUNT OF MONEY THE COAST GUARD IS AUTHORIZED TO SPEND (BUDGET
AUTHORITY), THE AMOUNT WE'VE PLANNED AND PROMISED TO SPEND (OUR
OBLIGATIONS) AND OBLIGATIONS INCURRED FOR WHICH GOODS HAVE NOT YET
BEEN DELIVERED OR SERVICES NOT PERFORMED (UNDELIVERED ORDERS).
	(4) THE STATEMENT OF CUSTODIAL ACTIVITY (SCA), WHICH PROVIDES A
REPORT OF REVENUE THE COAST GUARD HAS COLLECTED ON BEHALF OF THE U.S.
TREASURY.
	(5) FINALLY, THE INTERNAL CONTROLS OVER FINANCIAL REPORTING (ICOFR)
IS AN ASSESSMENT OF OUR INTERNAL CONTROLS OVER FINANCIAL REPORTING
AND HOW THE COAST GUARD MANAGES THE INTERNAL CONTROLS PROGRAM,
CULMINATING IN THE ANNUAL COMMANDANT'S STATEMENT OF ASSURANCE AT THE
END OF EACH FISCAL YEAR. INTERNAL CONTROLS ARE A MEANS BY WHICH COAST
GUARD'S FINANCIAL RESOURCES ARE MONITORED AND SAFEGUARDED
	B. IF YOU ARE LOOKING FOR ADDITIONAL INFORMATION ON FINANCIAL AUDIT
READINESS, PLEASE GO TO THE CG PORTAL PAGE FOR THE OFFICE OF
FINANCIAL MANAGEMENT TRANSFORMATION AND COMPLIANCE (CG-85) AT
HTTPS://COLLAB.USCG.MIL/LOTUS/MYQUICKR/CG-85-OFFICE-OF-FINANCIAL-TRAN
SFORMATION
(NOTE: THIS URL MUST BE IN LOWER CASE).  THERE, YOU WILL FIND
INFORMATION, TRAINING MATERIALS AND LINKS TO OTHER AUDIT RELATED
RESOURCES UNDER THE "AUDIT BASICS" TAB.
5.  MS. MARGO SHERIDAN, DIRECTOR OF FINANCIAL OPERATIONS/COMPTROLLER
SENDS.
6.  INTERNET RELEASE AUTHORIZED.