WHere To Begin by yaosaigeng

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									                   NYSICA Presentation

          Where to Begin With an
        Internal Control Program? –
        Assessable Units, Functions,
        Objectives & Internal Control
                  Inventory
Presented By:
Jennifer Winters, Internal Control Officer - Div. of Military &
Naval Affairs
                             JANUARY 29, 2009
               NYSICA Presentation
            Learning Objectives
  After today’s session you should be able to:
• Understand why leadership roles are key to the
  success of the IC program
• Understand how to segment an organization into
  assessable units
• Know how to identify major functions, assessable
  unit managers & responsible individuals
• Know the importance of objectives to a function
• Understand key ideas for an internal control
  inventory
                       JANUARY 29, 2009
          NYSICA Presentation
  Where to Begin with the Internal
        Control Program?
• Leadership Involvement
• Assessable Units
• Assessable Unit Managers &
  Responsible Individuals
• Major Functions
• Function Objectives
• Inventory of Controls
                 JANUARY 29, 2009
             NYSICA Presentation
Executive Management Involvement
• Agency head has overall responsibility of
  ICP
• Portray the right attitude toward internal
  controls
• IC officers & practitioners need to have
  leadership from the agency head
• Clearly communicated support
  – Tone at the Top letter

                     JANUARY 29, 2009
           NYSICA Presentation
Tone At the Top Letter - DMNA
• “Our ICP aides us in achieving our
  agency’s core missions,…”
• “At a time with challenging environments
  and fiscal constraints…”
• “...all employees share a role in the
  program to prevent any fraud, waste,
  mismanagement or abuse of state
  resources.”

                  JANUARY 29, 2009
             NYSICA Presentation

                 Guidance
• Objectives & goals of
  the function
• Priorities of the function
• Core missions
• Examples



                    JANUARY 29, 2009
                  NYSICA Presentation
                DMNA CORE MISSIONS
FEDERAL MISSION                             STATE MISSION
Maintain properly trained and               Provide trained and disciplined
equipped units available for                forces for domestic emergencies
prompt mobilization for war,                or as otherwise required by state
national emergency or as                    law.
otherwise directed.                         • Man, equip and train/retrain
• Maintain 100% personnel strength          standing state activity duty Homeland
for National Guard Units                    Security Missions
• Maintain 100% fill of authorized full     • Plan, organize and train to utilize
time federal manning                        National Guard elements to meet
                                            state domestic emergency response
• Base the forces for success               with partner agencies and
• Ensure minimum of 85% of our              communities
enlisted forces are qualified in their      • Approve and support military
assigned occupational skill                 stationing actions, maintain bases
• Maintain all assigned aviation            and mobilization platforms to ensure
assets at a mission capable status of       sustainment of federal mission and
85% or more                                 staging for state response
                                            requirements


                                     JANUARY 29, 2009
               NYSICA Presentation
           DMNA CORE MISSIONS con’t
FEDERAL MISSION                                STATE MISSION
•   Maintain adequate levels of critical       •   Man and train a state defense force to
    organizational equipment at 65% or             augment domestic operations
    more at all times                              capabilities
•   Maintain 90% of assigned critical          •   Man, train for and operate a state
                                                   defense force to provide a maritime
    ground equipment in a mission                  security service as directed
    capable status at all times
                                               •   Secure, preserve and provide access
•   Monitor national activity and develop          to the State’s military archives, records
    contingency plans to support the               and battle flag collection
    National Emergency Management              •   With federal resources, provide
    Compact                                        support to federal, state and local
                                                   agency for Counter Drug operations
                                                   and mutually supportive response to
                                                   Chemical, Biological, Radiological and
                                                   Nuclear incidents
                                               •   Coordinate with federal, state and local
                                                   elected officials and other state
                                                   agencies to base the force and lobby
                                                   for federal funding to enhance bases
                                                   manpower and equipment that
                                                   supports readiness and adds to
                                                   important economic programs in NYS
                                        JANUARY 29, 2009
              NYSICA Presentation


                    Future
                    Improve
  MAINTAIN                              MAXIMUM
                      The             OPERATIONAL
OPERATIONAL          Force
 CAPABILITY                            CAPABILITY




                   JANUARY 29, 2009
            NYSICA Presentation
          Assessable Units
• Systematic way to review internal controls
• Segment your organization into assessable
  units by using existing segments such as:
  – Organizational Charts
  – Departmental Budgets
  – Policy and Procedure Manuals
  – Programmatic
• Identify the functions it performs
• Include executive management in the
  process!           JANUARY 29, 2009
              NYSICA Presentation
            Assessable Units
• Don’t forget to include:
  – All programs
  – Regional offices
  – Facilities
  – Boards
  – Commissions
  – Committees
  – Councils, etc.

                       JANUARY 29, 2009
             NYSICA Presentation

    Assessable Units - DMNA
• DMNA is segmented into “Assessable
  Units” by Directorates
• Organizational Charts
  – Executive level – Example
  – Each Directorate level is reviewed/updated
    periodically
• Chain of Command Approach

                     JANUARY 29, 2009
                                         NYSICA Presentation
                                                             The Adjutant
                                                               General                                                             USP&FO

                                                                 State                                                              Federal

                              Personal Staff                                                     Special Staff
                              Aide          Special
                                           Assistant                        Govt Affairs
                             Federal                                                                     Public Affairs                   Legal
                                           Federal                             State                         State                        State



                                                                           Human Resources            Inspector General          State Internal Controls
                                                                                   Federal                Federal                        State




     Assistant Adjutant General                                  Director Joint Staff                          Assistant Adjutant
                Army                                                                                                General
                                                                         Federal
            Chief of Staff                                                                                                Air
              Federal
                                                                                                                     Federal
                                                          Special
                                                                                      Joint Task
                                                       Assistant State
Executive Officer             Command                                               Force / Empire
                                                                                        Shield
    Federal                   Sergeant
                               Major                                                     State
                               Federal                                                                                          Legend
                                                       State Directors
                                                                                                                                 Federal
                                                                                                                                 State
                                                       JANUARY 29, 2009                                                          Coord/Spt
                        NYSICA Presentation


State Directors                     Special Assistant
                                         State




                                                   Human
                 Budget &   Facilities &                                       New York
Administrative                                    Resources   Naval Militia
                  Finance   Engineering                                       State Guard
  Services                                          State




                                   JANUARY 29, 2009
            NYSICA Presentation

   Assessable Unit Managers
• Senior managers with primary and direct
  responsibility for accomplishing a function
  in an assessable unit
• Responsible for implementing and
  sustaining internal controls in their
  assessable unit
• Department, division, bureau – head,
  director, chief, etc.
                   JANUARY 29, 2009
                        NYSICA Presentation
Assessable Unit                        Special Assistant
                                            State

Managers


                                                      Human
                 Budget &    Facilities &                                         New York
Administrative                                       Resources   Naval Militia
                  Finance    Engineering                                         State Guard
  Services                                             State




                            Director of Post
                              Camp Smith
                              Training Site




                                     JANUARY 29, 2009
            NYSICA Presentation
     Responsible Individuals
• Individuals who know the day-to-day ops
  of the function
  – Can be a middle or line manager
  – Can be line staff
• Provide the most information and closest
  to the function
• Should perform the review and
  vulnerability assessments
                   JANUARY 29, 2009
             NYSICA Presentation

     Defining Major Functions
• Set of activities that carry out the primary
  mission of an assessable unit
• Allow for meaningful internal control
  reviews and vulnerability assessments
• Responsible individuals are identified
• No minimum or maximum # of functions in
  a unit

                    JANUARY 29, 2009
            NYSICA Presentation
Characteristics of Major Functions
• Activities that consume large amounts of
  time
• Involve a large number of staff
• Produce major work products
• Address major organizational initiatives
• New or undergoing major changes
• Carry out significant objectives and goals
  of a unit
                   JANUARY 29, 2009
           NYSICA Presentation
          Major Functions
• Keep an inventory of functions – review
  and update yearly
• Do the functions support the stated
  mission and program objectives?
• Involvement of executive management is
  key to provide guidance, input and
  direction!

                  JANUARY 29, 2009
            NYSICA Presentation

        Function Objectives
• Objectives are tied to the mission of the
  section, department, division, etc.
• Are the goals of the program being met?
• Easily understood by staff that carry out
  the functions
• Functions and objectives evolve


                   JANUARY 29, 2009
                   NYSICA Presentation
Assessable Units & # of Functions
    Assessable      # of Funct.         Assessable    # of Funct.
       Unit                                Unit
Gov’t Affairs           14         Human Resources        12

Public Affairs          6          Naval Militia          5

Legal                   4          State Guard            11

Admin Services          29         Counter Drug           7

Budget & Finance        14         Joint Task Force       10

Facilities Mgt &        20         5 Air Bases            3
Engineering                                              each

                             JANUARY 29, 2009
                NYSICA Presentation
           Inventory of Controls
• Done at a high, easily understood level
  – Dig down after the program is established
• Type of control – Preventive or Detective
  –   Documentation
  –   Approval/Authorization
  –   Verification
  –   Supervision
  –   Segregation of Duties
  –   Safeguarding Assets
  –   Reporting
• DMNA – working on compilation of controls
                         JANUARY 29, 2009
                        NYSICA Presentation


State Directors                     Special Assistant
                                         State




                                                   Human
Administrative   Budget &                                                      New York
                            Facilities &          Resources   Naval Militia
  Services        Finance                                                     State Guard
                            Engineering             State




                                   JANUARY 29, 2009
                    NYSICA Presentation
                              Human Resources
                                   State


  Affirmative Action, EEOC,
                                                         New York Awards
        Labor Relations



        Health Benefits                                        Hiring



State Active Duty – Line of Duty                              Payroll



      Personnel Services                              Time, Attendance & Leave

                                   JANUARY 29, 2009
                    NYSICA Presentation
                              Human Resources
                                   State


  Affirmative Action, EEOC,
                                                         New York Awards
        Labor Relations



        Health Benefits                                        Hiring



State Active Duty – Line of Duty                              Payroll



      Personnel Services                              Time, Attendance & Leave

                                   JANUARY 29, 2009
              NYSICA Presentation
    Functions & Objectives – DMNA
Affirmative Action & EEOC
• Functions
  – Plan and implement Affirmative Action & EEOC
    programs and policies
  – Review programs for compliance with DMNA’s
    programs
• Objective
  – Ensure compliance with all applicable Federal and
    State laws, Executive Orders and DMNA policies


                       JANUARY 29, 2009
                    NYSICA Presentation
                              Human Resources
                                   State


  Affirmative Action, EEOC,
                                                         New York Awards
        Labor Relations



        Health Benefits                                        Hiring



State Active Duty – Line of Duty                              Payroll



      Personnel Services                              Time, Attendance & Leave

                                   JANUARY 29, 2009
            NYSICA Presentation
            Functions – DMNA
Health Benefits
  – Administration of health benefit program for
    State employees, retirees, vestees,
    dependent survivors, and COBRA enrollees
  – Disseminate information to employees on
    benefit plans and changes to plans
  – Respond to employee inquires on benefits
  – Enter, update, change information in NYBEAS


                    JANUARY 29, 2009
           NYSICA Presentation
           Objectives – DMNA
Health Benefits
• Ensure employees have current
  information on health benefits
• Respond quickly and accurately to
  employee inquires
• Ensure employees’ information is up-to-
  date and accurate in NYBEAS

                  JANUARY 29, 2009
                    NYSICA Presentation
                              Human Resources
                                   State


  Affirmative Action, EEOC,
                                                         New York Awards
        Labor Relations



        Health Benefits                                        Hiring



State Active Duty – Line of Duty                              Payroll



      Personnel Services                              Time, Attendance & Leave

                                   JANUARY 29, 2009
            NYSICA Presentation
    Functions & Objectives – DMNA
Line of Duty Claims - State Active Duty
• Functions
  – Authorize emergency and follow up
    healthcare treatment for SAD members
  – Process Line of Duty claims
• Objectives
  – Ensure timely completion of claims
  – Ensure prompt payment of medical bills
                    JANUARY 29, 2009
             Internal Control Program Flow
                  NYSICA Presentation
Review Inventory of Functions on Function                                             Testing
           Identification Form                                                       Complete.
                                                                                    Begin Cycle
                                                                                   Based on Risk
                                                                                       Level
                                          Is the
      Any New,                                                 Complete Internal
                                       function due
     Obsolete or           N                               N    Control Review
                                           for a
      Revised                                                       Form
                                       Vulnerability
     Functions?
                                       Assessment?


        Y
                                            Y
                                                                     Are
                                                                  Corrective        N
                                                                   Actions
                                                                  Needed?

                                         Fill out
  Update Function                      Vulnerability
 Identification Form                   Assessment                   Y
                                          Form                                      Develop
                                                                                   Corrective
                                                                                   Action Plan
                                                                                      Form
                                            JANUARY 29, 2009
           NYSICA Presentation
       Training & Education
• Formal – Power point, classroom
  instruction, regulations, manuals, etc.
• Informal – Meet with the AUM’s and the
  Responsible Individuals
• Routine meetings – e.g. DMNA weekly
  Director’s meeting


                  JANUARY 29, 2009
             NYSICA Presentation
            Good To Know:
• Don’t reinvent the wheel!
          www.nysica.com/library.htm
• ICTF – The NYS Internal Control Act:
  Implementation Guide, Sep. 2006
• OSC – Standards for Internal Control, Oct. 2007
• DOB – Internal Control Act, Executive Briefing
  Book, Oct. 2007


                     JANUARY 29, 2009
      NYSICA Presentation

   Contact Information:
       Div. of Military &
      Naval Affairs - ICO

     Jennifer Winters, CPA
jennifer.winters1@us.army.mil
        518-786-4673
           JANUARY 29, 2009

								
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