AGENDA

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AGENDA

• Management Control Program (MCP)
• Overview
• Key Elements of MC Process
• MCP Plan
• AUMs
• Evaluators
• RMO
• FY07 Key Management Controls
• Evaluations
• Reporting of Material Weaknesses
• Training
• Required Training Modules
• Milestones
• MCP Web Sites
• Fiscal Law
• Anti-Deficiency Act (ADA)

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Management Control Program
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MCP Overview

• What are Management Controls?
• Anything that ensures
• What should happen DOES happen
• What should not happen DOES NOT happen
• Policies, procedures, regulations
• SBPs
• Management controls are the rules, methods,
  procedures, and devices that managers use to
  ensure that the job gets done right and to
  safeguard resources from waste, loss or misuse

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MCP Overview (continued)

• References and Responsibilities
• Federal Financial Managers Integrity Act of 1982
• OMB Circular A-123 (Mgts Responsibility for
  Internal Control)
• HQDA Functional Proponents
• Identify Key Management Controls
• HQDA, OASA(FMC)
• Provide inventory of required evaluations of
  functions with key management controls
• Prepares SA annual statement

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MCP Overview (continued)

• IMCOM Staff Agencies and Installations
• Identify assessable unit managers
• Establish management control plans
• Conduct management control evaluations
• Prepare and submit annual statements

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Key Elements of the Management Control Process

• Management control plans
• Key management controls
• Assessable unit managers
• Management control evaluations

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MANAGEMENT CONTROL PLAN

• A documented 5-year schedule of Key Controls that
  states
• WHAT will be evaluated
• WHO will do the evaluation
• WHEN the evaluator will do it
• May be merged w/other oversight plans (e.g. CIP)

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ASSESSABLE UNIT MANAGERS (AUMs)

• USAG COMMANDERS ARE THE AUMs
• PROVIDE LEADERSHIP AND SUPPORT TO ENSURE
  MANAGEMENT CONTROLS ARE IN PLACE AND OPERATING
  EFFECTLY
• ENSURE MANAGEMENT CONTROL EVALUATIONS ARE
  CONDUCTED
• REPORT MATERIAL WEAKNESSES IDENTIFIED
• CERTIFY RESULTS OF REQUIRED MANAGEMENT CONTROL
  EVALUATIONS, AND SIGN THE ANNUAL ASSURANCE
  STATEMENT

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EVALUATORS

• ASSIGNED BY AUMs
• MUST TEST EACH KEY MANAGEMENT CONTROL, AND
  DOCUMENT THE RESULTS ON DA FORM 11-2-R. INCLUDE
• HOW EACH CONTROL WAS TESTED
• WHAT CONTROL DEFICIENCIES WERE FOUND
• WHAT ACTION WAS TAKEN TO CORRECT THE DEFICIENCY
• FILL IN THE CHECKLIST FROM THE APPROPRIATE REG
  AND THE WEAKNESS REPORT IF REQUIRED
• TURN IN DA Form 11-2-R (ATTACH CHECKLIST) AND
  MATERIAL WEAKNESS REPORT TO YOUR RMO CELL.

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RESOURCE MANGEMENT OFFICE

• GARRISON MCP POC
• ANSWER QUESTIONS
• MAINTAIN LISTING OF INDIVIDUALS COMPLETING THE
  MCP TRAINING (REQUIRED FOR ANNUAL ASSURANCE
  STATEMENT)
• COLLECT DA Forms 11-2-R (AND CHECKLISTS) FOR THE
  COMMANDERS SIGNATURE
• ASSIST THE USAG COMMANDERS WITH PREPARATION OF
  ANNUAL ASSURANCE STATEMENT

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FY07 KEY MANAGEMENT CONTROLS
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FY07 KEY MANAGEMENT CONTROLS
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FY07 KEY MANAGEMENT CONTROLS
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MANAGEMENT CONTROL EVALUATIONS

• A MANAGEMENT CONTROL EVALUATION MUST
• TEST KEY CONTROLS (e.g., SAMPLING, FILE REVIEW,
  OBSERVATION AND/OR SIMULATION)
• DOCUMENT THE RESULTS (e.g., HOW TESTED,
  DEFICIENCIES FOUND, AND ACTIONS TAKEN)
• MANAGERS DECIDE HOW TO EVALUATE
• WITH THE MANAGEMENT CONTROL CHECKLIST
• USING SOME EXISTING REVIEW PROCESS

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REPORTING OF MATERIAL WEAKNESSES

• A MATERIAL WEAKNESS
• IS A MANAGEMENT CONTROL PROBLEM
• CONTROLS NOT IN PLACE
• CONTROLS NOT BEING USED
• CONTROLS NOT ADEQUATE
• WARRANTS ATTENTION AT THE NEXT LEVEL OF COMMAND
  
• FOR ACTION
• FOR AWARENESS

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REPORTING OF MATERIAL WEAKNESSES (continued)

• WHY SOME HESITATE TO REPORT
• FEAR OF CRITICISM
• FEAR OF WIDER AWARENESS/INTERFERENCE
• FEAR OF LIFETIME REPORTING OF MATERIAL WEAKNESS
• EXCUSES FOR NOT REPORTING
• PROBLEM HAS BEEN FIXED
• PROBLEM REPORTED THROUGH OTHER CHANNELS
• PROBLEM IS HUMAN ERROR

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REPORTING OF MATERIAL WEAKNESSES (continued)

• WHY REPORTING IS IMPORTANT
• SHARING INFORMATION
• MAINTAING CREDIBILITY
• ELEVATING PROBLEMS FOR HELP

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TRAINING

• ALL AUMs, EVALUATORS, AND RMO CELL POCs ARE
  REQUIRED TO COMPLETE MCP TRAINING
• ONLINE (84th USARRTC VIRTUAL UNIVERSITY)
• DESK SIDE
• CONFERENCE
• INDIVIDUALS REQUIRED TO COMPLETE THE TRAINING
  MODULE MUST FORWARD AN EMAIL VERIFYING THE
  COMPLETION OF THE TRAINING MODULE(S) TO THE RMO
  CELL
• WEB SITES
• https//port1.dcmsnet.org/dcmsvc/default.asp?loch
  ttps3A//port1.dcmsnet.org/dcmsvc/map.asp
• https//port1.dcmsnet.org/dcmsvc/default.asp?loch
  ttps3A//port1.dcmsnet.org/dcmsvc/DCMSTraining/myc
  ourses.asp3Fnew_enroll3Dtrue

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REQUIRED TRAINING MODULES

• AUMs
• INTRODUCTION TO MANAGEMENT CONTROLS
• MANAGEMENT CONTROL PROCESS (Version 2)
• EVALUATORS
• CONDUCTING AND DOCUMENTING EVALUATIONS (Version
  2)
• WRITING A MATERIAL WEAKNESS (Version 2)
• RMOs
• BECOMING A MANAGEMENT CONTROL ADMINISTRATOR
  (Version 2)
• INTRODUCTION TO MANAGEMENT CONTROLS
• MANAGEMENT CONTROL PROCESS (Version 2)
• CONDUCTING AND DOCUMENTING EVALUATIONS (Version
  2)
• WRITING A MATERIAL WEAKNESS (Version 2)
• GAO STANDARDS FOR INTERNAL CONTROLS IN THE FED
  GOVT (Version 2)

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MILESTONES

• 15 December 2006
• IDENTIFICATION OF DIRECTORATE EVALUATORS/POCs
• JANUARY 2007
• BRIEF USAG LEADERSHIP AND EVALUATORS ON FY07 MCP
• AUMs, EVALUATORS, AND RMOs COMPLETE ONLINE
  TRAINING, AND BEGIN KEY CONTROLS EVALUATIONS
• 31 JANUARY 2007
• EVALUATORS TURN IN DA FORMS 11-2-Rs (WITH CHECK
  LISTS) AND ANY KNOWN MATERIAL WEAKNESSES
  IDENTIFIED TO APPROPRIATE RMO
• RMOs REVIEW FOR COMPLETENESS, AND PACKAGE UP FOR
  AUM SIGNATURES
• 31 JANUARY 2007 THROUGH 15 FEBRUARY 2007
• COMMANDERS ANNUAL ASSURANCE STATEMENTS ARE
  COMPLETED, SIGNED, AND FORWARDED TO ETG COMMANDER
  FOR REVIEW/CHOP
• 15 FEBRUARY 2007
• USAG GARRISON COMMANDERS AAS SUBMITTED TO
  IMCOM

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MCP WEB SITES
OMB WEB SITE http//www.whitehouse.gov/omb/circul
ars/ ARMY WEB SITE http//www.asafm.army.mil/fo
/fod/mc/mc.asp
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Fiscal Law and Anti-Deficiency Act
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Fiscal Law
Fiscal law is the body of law that governs the
availability and use of federal funds
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Sources of Fiscal Law

• Fiscal law (or appropriations law) is derived
  from many sources
• The terms of the appropriations act itself
• Legislation, if any, authorizing the
• appropriation
• The "organic" or "enabling" legislation which
  prescribes a function or creates a program which
  the appropriation funds
• General statutory provisions which
• allow or prohibit certain uses of
• appropriated funds
• General rules which have been developed largely
  through decisions of
• the Comptroller General and the courts

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Availability of Appropriations

• Purpose
• - Specific purpose stated in act
• - Necessary expense doctrine
• Time
• - Bona fide need of the period
• - Subject to availability of funds
• Amount
• - Augmentation
• - Earmarking
• - Not-to-exceed

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Fiscal Law References

• GAO Principles of Federal Appropriations Law
• http//www.gao.gov
• Online Fiscal Law Courses
• http//www.saffm.hq.af.mil/fiscallaw/sitemap.htm
• http//www.hqda.army.mil/ogc/eandfoutline.htm
• Comptroller General Decisions
• http//www.gao.gov/decisions/decision.htm
• United States Code
• http//www.4.law.cornell.edu/uscode/index.html
• Regulations
• - DFAS-IN Regulation 37-1
• - Air Force Instruction 65-601, Volumes 1 and 2

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Anti-Deficiency Act

• Constitutional Foundations
• U.S. Constitution, Article I, Section 8, Clause 1
  - The power to tax and spend
• U.S. Constitution, Article I, Section 8, Clause
  16 - Organizing and training the militia
• - U.S. Constitution, Article I, Section 9, Clause
  7 - No money spent except as a consequence
  of a lawful appropriation

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Anti-Deficiency Act

• Statutory Foundations
• 31 U.S.C. 1511 - 1519 (require apportionment
  and administrative subdivisions of
  appropriations)
• 31 U.S.C. 1341 (prohibits obligations or
  expenditures in excess of appropriations and
  contracting in advance of an appropriation)
• 31 U.S.C. 1342 (prohibits government employees
  from accepting voluntary services)
• 31 U.S.C. 1344 (prohibits the unofficial use of
  passenger carriers)

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.0012 Representational Funds

• Entertainment (food and drink, either as formal
  meals or as snacks or refreshments receptions,
  banquets, and the like), gifts, etc. are
  generally prohibited by law or Comptroller
  General decisions
• Army Regulation 37-47, Representation Funds of
  the Secretary of the Army, permits use of
  appropriated funds to extend official courtesies
  to authorized guests for
• Hosting authorized guests to maintain the
  standing and prestige of the United States at
  home and abroad
• Luncheons, dinners, receptions, and participation
  expenses at DoD-sponsored events held in honor
  of authorized guests

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.0012 Representational Funds (continued)

• Entertainment of local authorized guests required
  to maintain civic or community relations
• Receptions for local authorized guests to meet
  with newly assigned commanders or appropriate
  senior officials
• Entertainment of authorized guests incident to
  visits by U.S. vessels to foreign ports and
  visits by foreign vessels to U.S. ports
• Official functions, floral wreaths, decorations,
  and awards, in observance of foreign national
  holidays and similar occasions taking place in
  foreign countries
• Dedications of facilities

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Prohibited Uses of .0012 Funds

• Any use of ORFs not specifically authorized in
  regulations must be approved as an exception to
  policy by the SA or his or her delegate
• No exceptions will be approved for any of the
  following uses
• Expenses solely for entertainment of, or
  gifts to, DoD personnel, except as provided in
  the regulation
• Expenses for classified projects for intelligence
  purposes
• Membership fees or dues

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Prohibited Uses of .0012 Funds(continued)

• Expenses assumed as a personal obligation, such
  as the purchase and mailing of Christmas cards
  or any other form of greeting cards the
  purchase of business
• cards, or the purchase of flowers to mark a
  purely personal occasion (e.g., a dignitary's
  birthday, anniversary, or birth of a baby)
• Gifts or flowers that an authorized guest wishes
  to present to any other individual
• Clothing, toilet articles, cigarettes, hair and
  beauty care, shoe shines, souvenirs, or any other
  personal items as guest purchases

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Prohibited Uses of .0012 Funds(continued)

• Long distance telephone calls placed by
  authorized guests, except when directly related
  to the purpose of the visit
• Any portion of any event that is eligible for
  sponsorship with nonappropriated funds, except
  expenses of authorized guests
• Repair, maintenance, and renovation projects to
  enhance the appearance of DoD facilities
• DoD personnel on temporary duty (TDY) status are
  reminded that meals provided at events paid with
  ORFs are provided at Government expense and
  cannot be
• claimed as reimbursable expenses

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General/Flag Officers Quarters

• Congress has expressed special interest in GFOQ
  because of
• Potential for abuse
• Higher than normal cost of operating and
  maintaining these quarters
• GFOQ cost reports are closely scrutinized in
  budgetary process
• Maintenance and Repair (MR) for GFOQ
• By Congressional mandate, MR obligations on each
  GFOQ limited to 25,000 per FY
• All costs directly associated with the GFOQ must
  be captured in quarterly obligations report

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General/Flag Officers Quarters (continued)

• Operations and Maintenance (OM) for GFOQ
• DA for approval required for GFOQs whose OM will
  exceed 50,000 in a FY
• Army Regulation 210-50, Housing Management,
  Chapter 13

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Questions / Guidance
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