R 271523Z FEB 12

ALCGFINANCE 008/12
SUBJ: MONTHLY FINANCIAL AUDIT STATUS UPDATE - FEBRUARY 2012
A. ALCOAST 533/11
B. ALCGFINANCE 002/12
1. THIS IS THE FIFTH IN A MONTHLY SERIES OF ALCGFINANCE MESSAGES
INTENDED TO IMPROVE FINANCIAL AUDIT COMMUNICATIONS AND INFORMATION
SHARING THROUGHOUT THE COAST GUARD.
2. CURRENT STATUS: A SMALL GROUP OF THE EXTERNAL AUDITORS CONTINUES
TO LOOK AT PROPERTY MANAGEMENT POLICIES AND PROCEDURES AND SOME
FOLLOW-ON FISCAL YEAR (FY) 2011 WORK.  THIS TEAM WILL ALSO BE
CONDUCTING SITE VISITS AND OBSERVATIONS OF THE CAPITALIZED PROPERTY
INVENTORY IN MARCH.  THE FY 2012 AUDIT READINESS EFFORT CONTINUES
WITH COAST GUARD REMEDIATION AND INTERNAL CONTROLS STAFFS AND A NEW
SHAREPOINT TOOL HAS BEEN ROLLED OUT TO BETTER TRACK PROVIDED BY
CLIENT (PBC) REQUESTS, AUDIT SAMPLES AND NOTICES OF FINDING AND
RECOMMENDATION (NFR'S) FROM THE EXTERNAL AUDITORS.
3. MONTHLY AUDIT TIPS:
     A. REFS A AND B CONTAIN A WEALTH OF INFORMATION REGARDING
TEMPORARY DUTY (TDY) TRAVEL OBLIGATIONS.  THESE DOCUMENT TYPE 11S AND
13S REMAIN SOME OF THE MOST TROUBLESOME TO THE COAST GUARD WHEN IT
COMES TO ACCURATELY RECORDING OBLIGATIONS.  I SUSPECT THE EXTERNAL
AUDITORS WILL SAMPLE HUNDREDS OF THESE OBLIGATIONS IN 2012.
     B.  TO BETTER PREPARE YOUR UNIT FOR THE AUDITORS, FIND, READ AND
ADHERE TO POLICY REITERATED IN THESE MESSAGES.  MORE INFORMATION IS
FORTHCOMING THAT WILL CONSOLIDATE THE MANY WAYS IN WHICH WE CREATE
THESE TRAVEL DOCUMENTS.  THIS WILL SAVE UNITS COUNTLESS HOURS IN
RE-CREATING HARD-COPY TRAVEL ORDERS AND PERFORMING UNNECESSARY
PROGRAM ELEMENT STATEMENT (PES) RECONCILIATIONS.
4. AUDIT 101: HERE ARE THE FINANCIAL AUDIT PROFESSIONAL DEVELOPMENT
ITEMS FOR THIS MONTH:
     A. ENVIRONMENTAL LIABILITIES (EL) ARE A LARGE DOLLAR ITEM ON THE
COAST GUARD BALANCE SHEET.  EL REPRESENTS THE POTENTIAL FUTURE
CLEAN-UP COSTS FOR OUR BUILDINGS, STRUCTURES AND VESSELS ASSOCIATED
WITH LEAD PAINT, ASBESTOS AND OTHER TOXINS.  EL CAN BE MEASURED
THROUGH SCIENTIFIC TESTING BY TRAINED ENVIRONMENTAL ENGINEERS OR
THROUGH PARAMETRIC MODELING USING A BUILDINGS AGE, SQUARE FOOTAGE AND
CONSTRUCTION TYPE.  THE EXTERNAL AUDITORS WILL BE LOOKING FOR THE
FIRST TIME IN 2012 TO ENSURE ALL THE ASSETS IN OUR INVENTORY HAVE
SOME EL RECORDED, OR SOME PROOF THAT NO EL HAZARDS EXIST.
     B.  EL ARE REMOVED THROUGH THE CEU'S ENVIRONMENTAL COMPLIANCE
AND
RESTORATION (EC AND R) PROGRAM.  THIS PROGRAM MANAGES PROJECTS TO
CONDUCT ASBESTOS ABATEMENT, SOIL CLEAN-UP AND LEAD PAINT REMOVAL.
     C. 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 IS 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.