R 191645Z NOV 12

ALCOAST 486/12
COMDTNOTE 7500
SUBJ: FISCAL YEAR (FY) 2012 USCG FINANCIAL AUDIT RESULTS
1.  Yesterday, I received the audited DHS annual financial report
with the independent auditor providing a qualified opinion that our
account balances were fairly represented. Now I'm not an accountant
or an auditor, and I know many of you are not either. But this is a
very big deal for the Coast Guard and DHS. Our Secretary gave us her
personal thanks. No other Armed Service has been able to accomplish
this. Well done, shipmates.
2.  The Coast Guard has continued its commitment to fiscal
stewardship by expanding efforts to remediate material weaknesses
reported by the independent auditors in 2011 and by improving our
internal controls over financial reporting.  In FY 2011, the auditors
reviewed two of our five financial statements.  In FY 2012, the
financial statement audit was significantly expanded to a full scope
audit to cover all five statements.
3.  Field units, logistics and service centers, and headquarters
elements made remarkable progress toward our goal of attaining a
clean opinion, meaning no identified issues with the quality of our
financial data and records.  Our achievements with real property
accountability, inventory control point parts management, financial
system data reconciliation, compliance with financial management and
procurement policies and procedures, and open obligation validation
allowed our financial information to be successfully audited. We
still need to improve personal property recordkeeping and compliance
with inventory procedures, and this year will do so.
4.  We are committed to achieving a clean opinion on the audit, and
the FY 2013 audit will soon be underway.  We will need to demonstrate
sustained compliance with policies and procedures.  This ambitious
effort will involve everyone in the Coast Guard and it will require
your continued support, coordination and patience.  Thank you for
your continued efforts to ensure proper stewardship and
accountability for the American public.
5.  Stand a taut watch. Semper Paratus.
6.  Admiral Bob Papp, Commandant, sends.
7.  Internet release authorized.