R 271517Z APR 12

ALCOAST 197/12
COMDTNOTE 4550
SUBJ: MARCH 2012 CG-WIDE PHYSICAL INVENTORY OF COAST GUARD ASSETS
-INVENTORY RESULTS
A. COMDT COGARD WASHINGTON DC 032111Z FEB 12/ALCOAST 050/12
B. COMDT COGARD WASHINGTON DC 151858Z FEB 12/ALCOAST 081/12
1. The March 2012 physical inventory of Coast Guard assets in
accordance with the Warning Order in Reference A and the Action Order
in Reference B, is complete.  This inventory and other evolutions
like it in the future are ensuring that the Coast Guard has adequate
policy, procedures, and internal controls in place necessary for us
to truly become a world class financial organization.  Thanks to your
efforts, we have completed our property inventory cycle in 3.5 weeks
despite units still adjusting to the inclusion of all Coast Guard
-owned and commercially leased non-capitalized motor vehicles and
trailers and internal use software (IUS).  All of the 1094 Coast
Guard units submitted their required inventory packages, and all
units packages have reached final acceptance.  This year, 58 percent
of units were able to complete the evolution on initial submission.
This stands as an improvement of the 44 percent from September 2011
due to units adjusting to the addition of Coast Guard -owned and
commercially leased non-capitalized motor vehicles and trailers.  Our
goal for the September 2012 inventory is to have 100 percent of units
submit only one time.  I am challenging the remaining 461 Coast Guard
units to "get there" the first time.
2. As we have done since our first inventory in September 2009, we
continue to analyze our processes and streamline where appropriate.
By and large, you are doing a great job accounting for our personal
property assets.
3. The external auditors of the Coast Guard noted the following
weaknesses based upon their observations of our inventory procedures.
These are areas we must improve upon:
     a) Count teams did not perform the "Floor-to-Record" or did not
visit all areas of the unit property during this portion of the
inventory. The "Floor-to-Record" procedures are vital for ensuring
our property records are complete.
     b) Count teams are not receiving adequate instructions from the
Accountable Property Officer or did not review the inventory
procedures document prior to the count.
     c) Count team members did not examine supporting documentation
to
verify the existence of assets that were underway or deployed at the
time of the count.
4. Coast Guard Property Managers also noted specific field
observations and the most common reasons inventory packages were
rejected, as follows:
     a) Units did not submit the correct memo format as described in
the physical inventory procedures.
     b) Units did not provide ample supporting documentation to add,
delete, and transfer assets.
     c) Units were not running the Physical Inventory Report in the
format as per the Oracle Fixed Assets Module (FAM) job aid.
     d) Units did not uphold the segregation of duties pertaining to
the role of the Accountable Property Officer and Property
Administrator.
     e) Count teams were not initialing and dating personal property
line items on the Oracle Physical Inventory Reports.
     f) Coast Guard units did not initial and date each page break
line
on the Physical Inventory Report.
     g) Units were not providing reconciled subsidiary system
(AOPS/ALMIS/FMVRS/IUS) reports as part of the package submission.
     h) Count teams were not initialing and dating personal property
line items on the subsidiary system reports.
5.) Thank you for your extensive contributions.  You are clearly
upholding your responsibilities as stewards of the taxpayers dollars.
6.) Ms. Margo Sheridan, Director of Financial Operations/Comptroller,
sends.
7.) Internet release authorized.