R 281200Z JUN 12

ALCGFINANCE 022/12
SUBJ: MONTHLY FINANCIAL AUDIT STATUS UPDATE - JUNE 2012
A. ALCGFINANCE 043/11
B. COMDTINST M7100.4
1. This is the ninth 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 and is currently in the audit testing phase. A great deal
of work has been accomplished in the field and at the service and
logistics centers, particularly with relation to property enrollment.
An ongoing surge effort is underway for asset enrollment, and as of
the end of this month, Coast Guard and DHS staff have enrolled
approximately 13,500 Coast Guard assets representing 2.4 billion
dollars in original acquisition costs.
           B. Reference A is a description of the audit phases.
Additionally, please visit the following link to view Admiral Papp's
video message on the FY 2012 financial audit
(http://cgvi.uscg.mil/media/main.php/f/Audit2012).
3. Audit 101:
           A. At present, there is no automatic reconciliation
between
the Coast Guard's financial management framework, Oracle databases,
and the service's subsidiary systems, such as the Abstract of
Operations System (AOPS) used by operational units underway.
           B. The lack of interface between the Coast Guard's
financial and subsidiary systems has resulted in occasional overlaps
between these systems, creating the opportunity for
under/overstatement of the account balance for Property, Plant and
Equipment (PPE).
           C. There are many subsidiary systems in use in the Coast
Guard. Several that will most commonly be used at field units (and
will require reports during a physical inventory verification) are:
           1. Abstract of Operation System (AOPS) - used to record
operations and logistics of small boats and vessels.
           2. Aviation Logistics Management Information System
(ALMIS)
- used to record operations and logistics of aircraft (and small
boats).
           3. Integrated Aids-TO-Navigation System (IATONIS) - used
to
record the operational aspects of ATON.
           4. Housing Management Information System (HMIS) - used to
record the operational aspects of housing.
           5. Fleet Logistics System (FLS) - used to record the
operational aspects of general purpose property, electronics, and
real property. FLS is normally used by the electronic (ELEX)
community.
           6. Shore Asset Management System (SAMS) - used to record
the operational aspects of real property.
4. Monthly Audit Tips:
           A. The under/overstatement of Property, Plant and
Equipment
account balances as a result of overlapping financial and subsidiary
systems (described in the Audit 101 section of this message) is a
potential problem that will affect a wide variety of personnel at
field units, including unit logistics personnel and CO/OIC/Unit level
supervisors.
           B. Logistics staff and supervisory personnel at field
units
are expected to reconcile these financial (Oracle) and subsidiary
systems when necessary in order to minimize the possibility of
overlap and under/overstatement of account balances. Reconciliation
can include:
           1. Following the Coast Guard's established procedures for
physical inventory and year-end certification of capitalized personal
property (see Reference B).
           2. After physical assets have been identified and matched
for verification, initial and date each asset on the accompanying
subsidiary system report (such as a Resource Assignments report in
AOPS).
           3. After completing the inventory, all Count Team (CT)
members, Property Administrators (PA's), and Accountable Property
Officers (APO's) are required sign and date the last page of the
Physical Inventory Report.
           C. View the available training in the 'Audit Readiness
Training' folder at the CG-85 portal site
(https://collab.uscg.mil/lotus/myquickr/cg-85-office-of-financial-tra
nsformation/documentation-support-matrix)
and ensure all applicable personnel at field units are familiar with
the Documentation Support Matrix.
           D. View Admiral Papp's video message on the FY 2012
financial audit (http://cgvi.uscg.mil/media/main.php/f/Audit2012) and
present or distribute this video to all hands at field units to
increase audit awareness and readiness.
5.  Ms. Margo Sheridan, Director of Financial Operations/Comptroller,
sends.
6.  Internet release authorized.