US Navy Financial Management (FIP)
In preparation for being audit ready, the Navy developed a comprehensive Financial Improvement Program (FIP), which identified major business segments for focused attention. The FIP Plan has various stages including discovery, Corrective Action, Audit Readiness Assertion, Validation and under Audit or Sustainment. This program is also referred to as Financial Improvement and Audit Readiness (FIAR).
Over the last three years Main Sail supported various task orders including: Business Process Standardization (BPS I and III), Fleet Audit Sustainment (FAS), Audit Response Center (ARC) and the Defense Finance and Accounting Service (DFAS) Liaison Office. While each project required different skill sets all work was directed at supporting the clients efforts to become audit ready. Main Sail consultants applied their work experience and knowledge of the client’s organizations, business processes and systems, as well as the various audit and management controls programs and guidance in supporting the client’s progress towards becoming ready for financial statement audits, as well as supporting sustainment.
Main Sail supported the development of business process standards:
We supported the development of end to end (E2E) process flows and data dictionaries for the various business segments within the E2E business processes including: Budget to Report (B2R), Order to Cash (O2C), Procure to Pay (P2P), and Acquire to Retire (A2R). The process flow maps and data dictionaries were developed for specific business processes, e.g., funds distribution, contract/vendor pay, reimbursable work orders, etc. These are required since in a non-standard environment, any auditor would have a very difficult challenge auditing financial statements resulting in disclaimers on financial statements. The work on BPS-I was the foundation for follow-on work in BPS-II and III.
The Main Sail consultant also supported the client’s development of requirements for a new Contract Writing System (CWS), now called Enterprise Procurement System (EPS). The Main Sail SME provided relevant insight on current practices, gaps between program managers developing purchase requirements, the contract writing organizations, fund holders and accounting offices to meet audit readiness objectives for the contract/vendor pay business segment.
Main Sail supported the implementation of business process standards by analyzing standard financial business processes and their components in terms of effectiveness, efficiency, and added value contribution to the objectives of the business.
Main Sail analyzed existing client financial processes and worked to reduce process variations within Civilian Pay, Funds Receipt Distribution, and Transportation business segments.
Our on-site consultant assisted in documenting, implementing, and training personnel on the approved standard processes.
We provided strategic program management support in the execution of an aggressive Plan of Action Milestone (POA&M) schedule. As financial segments within the client’s sites were found to have non-compliance process variations, Main Sail was responsible for developing resolutions and coordinating these process changes through development of segment implementation client action plans.
Main Sail supported the mapping of a General Ledger (GL) Matrix. This is essentially a crosswalk between the Treasury’s United States Standard General Ledger (USSGL) and a client’s core Enterprise Resource Planning (ERP) system transactions for specific financial segments. Main Sail captured variant descriptions, themes, and GL posting logic within the GL Matrix and develop solution to correct those inconsistencies.
Fleet Audit Sustainment
Main Sail provided support to US Navy Fleet organizational units. The work ranged from additional BPS definition to coordination of standards, review of Key Supporting Documentation (KSDs), testing transactions, reporting status and coordination of all issues.
Support focused on the confirmation of “As Is” processes at the Command and field activity level, and analysis of variances between the standards and the current processes.
Based on our analysis we identified GAPs in various processes and developed Corrective Action Plans (CAPs) for limiting the financial internal control risks.
Our support included an assessment of people, technology, infrastructure and system processes for each of the segments as directed by the DOD client with the ultimate goal of preparing for a successful financial statement audit, as well as long-term sustainment.
Main Sail directed and oversaw audit response activities through the DOD clients to all subordinate organizations and service providers to support the goal of obtaining a clean opinion on financial statements.
We coordinated enterprise-wide audit sustainment activities through the development and management of activities to support the examination and audit of the Statement of Budgetary Resources (SBR).
As the segment lead, Main Sail developed an organizational framework of internal control based upon OMB A-123 and GAO Standards for internal control that include writing policies, processes, and procedures to support the framework.
Main Sail reviewed business and systems operations to support and verify data traceability, accuracy and the existence and completeness assertions for financial statement compilation reporting (FSCR). We identified and evaluated weaknesses and gaps between current and proposed systems and business process standardization efforts.
Designed a Funds Balance with Treasury (FBwT) training module to be used by the DOD clients Audit Liaison staff, DoDIG, and Independent Public Auditor (IPA) during the course of testing and examination.
Main Sail served as a unit liaison for the IG Review of Existence and Completeness for Ordnance. Main Sail supported the Segment Correction Action Plan Tracker (CAP) by developing a layout process between all client organizational units involved in the implementation and sustainment.
Main Sail supported a client who established an on-site liaison office at the Defense Finance and Accounting Service (DFAS) Cleveland, OH (DFAS-CL).
Main Sail was assigned responsibility for Financial Statement Compilation and Reporting (FSCR) and Fund Balance with Treasury (FBwT) control point testing. In addition to control point testing, Main Sail supported Treasury reporting journal voucher package preparation/audit adjustments.
Additionally, Main Sail supported FBwT by reconciling four appropriations and created Standard Operating Procedures (SOPs).