R 241240Z JUL 12

ALCGFINANCE 024/12
SUBJ: MONTHLY FINANCIAL AUDIT STATUS UPDATE - JULY 2012
A. FINANCIAL RESOURCE MANAGEMENT MANUAL, COMDTINST M7100.3D
B. COMDT COGARD WASHINGTON DC 231943Z MAR 12/ALCGFINANCE 011/12
C. COMDT COGARD WASHINGTON DC 071610Z FEB 12/ALCGFINANCE 004/12
1. This is the tenth 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.
Sampling is currently underway, with auditors taking property samples
to get an early snapshot as of the third quarter close on 30 June
2012. Auditors are scheduled to conduct select field unit site visits
mid-August.
        B. A crucial aspect of the Coast Guard's audit readiness
efforts involves updating and maintaining our property databases.
Field units should make it a priority to participate in this effort
by ensuring that property records and inventories are meticulously
updated and maintained in accordance with Chapter 7.A of reference A.
3. Audit 101:
        1. A major issue during the FY 2012 audit has been the status
of open obligations. In reference B, we explained some of the basics
of open obligations. To reiterate, open obligations occur when a unit
has financially obligated the government for a good or service. When
a good/service has not been received it is called an Undelivered
Order (UDO) and when a good/service has been received but not yet
paid for it is called a delivered order (DO). The continuous and
accurate validation of open obligations (UDO and DO) by field units
are critical to the success of the FY 2012 full scope audit.
        2. In this issue of the newsletter, we will discuss how field
unit personnel and financial managers ensure that open obligations
are validated using the CFO Web Tools Suite.
        3. The Open Obligation Validation Application (OOVA) is a
Coast Guard financial management application that is part of the CFO
Web Tools suite (http://cfotools/oova). OOVA is the financial
manager's primary tool for reviewing open obligations for the Core
Accounting System (CAS), Aviation Logistics Management Information
System (ALMIS) and the Naval Electronics Supply Support System
(NESSS) to ensure they are valid, properly documented, and accurately
recorded, and to identify obligations that are no longer valid so
that action may be taken to remove them from the financial system.
        4. There are three steps required to validate open
obligations
in OOVA. They are:
        A. Step 1: Identify prior and current year open obligations
requiring validation using the validation scorecard found on the OOVA
website. OOVA reports non-zero open obligation balances from CAS -
once a balance reaches zero, OOVA no longer reports it. OOVA may also
report a negative balance from ALMIS or NESSS, which occurs when the
financial transaction exceeds the obligated amount available for a
specific account.
        B. Step 2: Research the open obligations to determine
validation status.
        C. Step 3: Record your validation efforts in OOVA. This
includes selecting a validation status and entering comments for each
open obligation.
4. Monthly Audit Tips:
        1. Per reference C, financial managers at field units are
required to monitor and validate all prior and current year
obligations quarterly and annually in OOVA. Accordingly, financial
personnel and managers at field units should practice the following
guidelines:
        A. Ensure your comments and supporting documentation
accurately reflect the chosen category. Headquarters review of 3rd
quarter validation revealed multiple cases where high dollar
obligations were incorrectly categorized and/or lacked supporting
comments.
        B. For the command cadre at field units, prioritization.
Compliant financial management is the responsibility of command
cadre. Under the current budget constraints the importance of fiscal
stewardship is crucial to organizational success. Command cadre must
make financial management issues a priority and be involved with the
reports released by their financial managers. A continuous and
accurate scrubbing of UDO balances will help ensure we are not
returning unused funding while simultaneously requesting additional
resources.
        C. Monitor your aged UDOs and de-obligate as necessary.
Review
high risk items such as 'no activity (greater than) 365 days' and
'still needed (greater than) 900 days'. These transactions should
have thorough comments to support their categorization or should be
de-obligated as appropriate.
        2. 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.
5.  Ms. Margo Sheridan, Director of Financial Operations/Comptroller,
sends.
6.  Internet release authorized.