R 161717Z NOV 11

ALCOAST 533/11
COMDTNOTE 7500
SUBJ: FISCAL YEAR (FY) 2011 USCG AUDIT REMEDIATION
1. THE COAST GUARD WAS FULLY COMMITTED TO OBTAINING A SUCCESSFUL
AUDIT OPINION FOR FY 2011 AND WORKED AGGRESSIVELY TO IMPROVE OUR
FINANCIAL MANAGEMENT PROCESSES, REPORTING, AND INTERNAL CONTROLS.  I
AM PLEASED TO ANNOUNCE THAT LATE YESTERDAY I RECEIVED A REPORT FROM
THE DEPARTMENT OF HOMELAND SECURITY THAT INCLUDES A QUALIFIED OPINION
FOR THE COAST GUARDS FY 2011 BALANCE SHEET AND STATEMENT OF CUSTODIAL
ACTIVITY.  THE DEPARTMENT SPECIFICALLY PRAISED THIS SIGNIFICANT
PROGRESS BY ALL LEVELS OF OUR SERVICE. BRAVO ZULU, SHIPMATES.
2. THE FY 2011 AUDIT RESULTS MARK THE FIRST TIME THAT THE COAST GUARD
HAS SUCCESSFULLY OBTAINED A QUALIFIED OPINION ON ITS BALANCE SHEET.
THIS SIGNIFICANT ACHIEVEMENT HAS ENABLED THE DEPARTMENT TO ALSO EARN
A QUALIFIED OPINION ON ITS CONSOLIDATED BALANCE SHEET AND STATEMENT
OF CUSTODIAL ACTIVITY. I REALIZE THAT EFFORTS TO ACHIEVE THESE
RESULTS INCLUDED CHANGES TO LONG-STANDING COAST GUARD FINANCIAL
MANAGEMENT BUSINESS PRACTICES. HOWEVER, THESE CHANGES SUCCESSFULLY
AIDED THE FY 2011 AUDIT AND PLAYED A CRUCIAL ROLE IN IMPROVING THE
RELIABILITY OF OUR FINANCIAL MANAGEMENT DATA. I ALSO RECOGNIZE THAT
THESE EFFORTS HAVE INVOLVED MANY OF YOU, FROM SMALL BOAT STATIONS TO
AREA COMMANDS AND BASES TO LOGISTICS CENTERS. THE SUCCESS OF THE FY
2011 AUDIT WOULD NOT HAVE BEEN POSSIBLE WITHOUT YOUR HARD WORK.
3. OF COURSE, FINANCIAL STEWARDSHIP AND ESTABLISHING AUDIT READINESS
IS A CONTINUOUS PROCESS AS EVIDENCED BY THE FACT THAT OUR FY 2012
AUDIT PROCESS IS ALREADY UNDERWAY.  WE WILL UNDERTAKE AN EVEN MORE
EXPANSIVE FINANCIAL AUDIT, WHICH WILL CONTINUE TO INVOLVE YOU AND
REQUIRE YOUR PATIENCE AND PERSEVERANCE.  I APPRECIATE YOUR CONTINUED
EFFORTS TO GUARANTEE PROPER STEWARDSHIP AND ACCOUNTABILITY BY OUR
SERVICE FOR THE AMERICAN PUBLIC.
4. ADMIRAL ROBERT J. PAPP, COMMANDANT, SENDS.
5. INTERNET RELEASE AUTHORIZED.