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					                                          AMC




Joint ARNG, USAR, and AMC MICP Training
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                                          AMC




Joint ARNG, USAR, and AMC MICP Training
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                           Accountability
                                                       AMC




 Use government resources efficiently, effectively,
  equitably, and legally to achieve the purposes for
  which the resources were furnished or the program
  was established
 Comply with applicable laws and regulations including
  identifying the requirements with which the entity and
  the official must comply and implementing systems
  designed to achieve that compliance




   Joint ARNG, USAR, and AMC MICP Training
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                            Accountability
                                                         AMC




 Establish and maintain effective internal control to
  ensure appropriate goals and objectives are met
 Safeguard resources
 Ensure management and financial information is
  reliable and properly reported
 Provide appropriate reports to those who oversee their
  actions and to the public in order to be accountable for
  the resources and authority used to carry our
  government programs and the results of these
  programs
    Joint ARNG, USAR, and AMC MICP Training
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                                                  AMC




    Maintaining Integrity and Accountability
         In Programs and Operations
 Is critical for good government
 Demonstrates responsible stewardship over assets
  and resources
 Promotes high quality, responsible leadership
 Enhances the sound delivery of services to
  customers
 Maximizes desired program outcomes

 Joint ARNG, USAR, and AMC MICP Training
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                                                                       AMC




                                          It’s the law!
                                                  But
                                          It makes common sense
                                            ۩ Fewer resources in the
                                               future
                                            ۩ Public demands
                                              more accountability
                                            ۩ Key in our nation’s
                                               governing process
                                            ۩ Critical element for a
                                               healthy democracy




Joint ARNG, USAR, and AMC MICP Training
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                        Public Accountability
                                                                     AMC




   Budget and Accounting Act - 1921
   Accounting and Auditing Act - 1950
   Inspector General Act and Its Amendments – 1978
   Federal Managers’ Financial Integrity Act (FMFIA) - 1982
   Chief Financial Officers (CFO) Act - 1990
   Government Performance and Results Act (GPRA) - 1993
   Government Management Reform Act (GMRA) - 1994
   Federal Financial Management Improvement Act (FFMIA) - 1996
   Information Technology Management Reform Act (Clinger/Cohen) - 1996
   Federal Information Security Management Act (FISMA) - 2002
   Improper Payments Information Act - 2002
   Sarbanes-Oxley Act – 2002
   Accountability and Transparency Act - 2006
      Joint ARNG, USAR, and AMC MICP Training
                                                                           7
                                                AMC



“This Administration is dedicated to ensuring

  that the resources entrusted to the federal

government are well managed and wisely used.

      We owe that to the American people.”


 President George W. Bush


  Joint ARNG, USAR, and AMC MICP Training
                                                      8
                               Army Priorities
                                                          AMC




            #3 – Transforming the Army – Change and
              Improvements

            #6 - Providing the resources to execute The
              Army Plan, and we will do that by:
                  -- effectively acquiring and managing
              resources, and
                  -- being innovative in the application of
              those resources




Joint ARNG, USAR, and AMC MICP Training
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                                          AMC




Joint ARNG, USAR, and AMC MICP Training
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               Inherent Management Responsibility
                                                      AMC




 A Good staff officer should possess and
  demonstrate:
          • competence
          • initiative and judgment
          • creativity
          • flexibility
          • confidence
          • loyalty
 In addition, a good staff officer should be:
          • a team player
          • an effective manager               FM 101-5
          • an effective communicator
  Joint ARNG, USAR, and AMC MICP Training
                                                            11
               Inherent Management Responsibility
                                                             AMC




An Effective Manager must be:

         • Able to effectively manage time and resources;

         • A good steward of resources that the country
           entrusts to his care;

         • Diligent in efforts to efficiently manage these
           resources, avoiding waste, destruction, and
           duplication of efforts.


  Joint ARNG, USAR, and AMC MICP Training
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              Inherent Management Responsibility
                                                             AMC




5 Functions of Management
        – Planning
        – Organizing
        – Staffing
        – Directing
        – Controlling – the process of:
              • making certain that directed actions are
                carried out as planned in order to achieve
                some desired objective or goal
              • assessing controls
 Joint ARNG, USAR, and AMC MICP Training
                                                                   13
                Army Management Philosophy
                                             AMC




• Do the right things


• The right way


• For the right reasons


• Constantly strive for improvement


   Joint ARNG, USAR, and AMC MICP Training
                                                   14
                Army Precepts of Management
                                              AMC




• Top management leadership
• Satisfy or exceed customer requirements
• Strategic planning
• Training
• Recognition and reward
• Empowerment, teamwork, and
  total army involvement
• Measurement and analysis
• Continuous process improvement

   Joint ARNG, USAR, and AMC MICP Training
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               Army Precepts of Management
                          (Cont)             AMC




  Leaders, commanders, and managers at all
levels will implement the Army management
philosophy through employing an organized,
systemic approach toward continuous
process improvement ensuring efficient
stewardship of and accountability of
resources

  Joint ARNG, USAR, and AMC MICP Training
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                                          AMC




Joint ARNG, USAR, and AMC MICP Training
                                                17
                      The Integrity Act of 1982
                                                             AMC




   Establish internal accounting and administrative controls
    to provide reasonable assurance that
    - Obligations and costs are in compliance with Law
    - Funds, property, and assets are safeguarded against
    waste, loss, fraud, or misuse
    - Revenues and expenditures properly recorded and
    accounted for to permit reliable accounts and reports,
    and to maintain accountability over the assets
   Periodically evaluate internal controls
   Prepare an Annual Statement of Assurance
   Identify, track, and correct material weaknesses
       Joint ARNG, USAR, and AMC MICP Training
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                                            AMC




GAO/AIMD-00-21.3.1, November 1999




  Joint ARNG, USAR, and AMC MICP Training
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             GAO Standards for Internal Control
                                                  AMC




              1. Control Environment

              2. Risk Assessment

              3. Control Activities

              4. Information and Communications

              5. Monitoring



Joint ARNG, USAR, and AMC MICP Training
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                    OMB Circular A-123
                                                        AMC




 The proper stewardship of federal resources is a
 fundamental responsibility of agency managers and
 staff
 Management controls are integral to entire cycle of
 planning, budgeting, management, accounting, and
 auditing
 Management controls should add benefit rather than
 encumber managers

  Joint ARNG, USAR, and AMC MICP Training
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                   OMB Circular A-123 -- Impacts
                                                   AMC




   Integrates management control with

    other management requirements

   Continuous monitoring becomes basis for
    Annual Statement of Assurance

   Defines what must be reported (material

    weaknesses)

    Joint ARNG, USAR, and AMC MICP Training
                                                         22
               2004 – Significant Revisions to
                    OMB Circular A-123                        AMC




                   “Management Accountability and
                 Control” to “Management’s Responsibility
                 for Internal Control”
                  “Management” controls to “internal”
                 controls
                   New assurance statement and guidance
                 on effectiveness of internal controls over
                 financial reporting



Joint ARNG, USAR, and AMC MICP Training
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                    DODI 5010.40,“Managers’ Internal
                    Control (MIC) Program Procedures,”
                                                         AMC




 All administrative and operational activities and
mission responsibilities
 MIC Program Structure – managers, assessable units
and managers, senior mgmt councils
Two distinct processes – FMFIA and Financial
Reporting                                     4 Jan 06
 Guidance for Annual Statements of Assurance and
their types (unqualified, qualified, no assurance)
   Use existing data and reports wherever possible
     Joint ARNG, USAR, and AMC MICP Training
                                                               24
               AR 11-2, Management Control
                                                 AMC




 Prescribes policies, responsibilities, and

  requirements

 Reinforces accountability of Army commanders and

  managers


                        1 Aug 94


  Joint ARNG, USAR, and AMC MICP Training
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                          Army MICP Policy
                                                 AMC




  All commanders and managers have an inherent
   responsibility to:
       – establish and maintain effective internal
        controls
       – assess areas of risk
       – identify and correct weaknesses in those
        controls
       – keep their superiors informed


Joint ARNG, USAR, and AMC MICP Training
                                                       26
                             Army MICP Policy
                                                 AMC




 Understand and apply GAO Internal Control
 Standards in the Federal Government
 Conduct periodic evaluations of key internal
 controls identified by HQDA functional
 proponents in applicable Army Regulations
 (minimum requirement)




   Joint ARNG, USAR, and AMC MICP Training
                                                       27
                             Army MICP Policy
                                                AMC




 Give high priority to the prompt correction of
 material weaknesses and to the effective
 implementation of internal controls
 Be forthright in reporting material weaknesses
 in key internal controls




   Joint ARNG, USAR, and AMC MICP Training
                                                      28
                           Army MICP Policy
                                              AMC




 Reporting organizations will be segmented
 into assessable units (AU) headed by an
 assessable unit manager (AUM)
 Performance agreements for commanders and
 managers with internal control responsibility
 must include an explicit statement of internal
 control responsibilities




 Joint ARNG, USAR, and AMC MICP Training
                                                    29
                            Army MICP Policy
                                               AMC




 No Army activity or program is exempt
 from the requirements of the Integrity Act
 or OMB Circular A-123




  Joint ARNG, USAR, and AMC MICP Training
                                                     30
                     Army MICP Requirements
                                                                         AMC




 Reasonable assurance
 Key internal controls
 Internal control evaluations
 Internal control plans
 Identifying, reporting, correcting, and tracking material weaknesses
 Use of audit and inspection reports
 Army reporting requirements
 Required documentation
 Performance agreements



     Joint ARNG, USAR, and AMC MICP Training
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                                            “First is the Soldier.      AMC

                                            Our Soldiers are
                                            paramount. They will
                                            remain the centerpiece
                                            of our thinking, our
                                            systems, and our
                                            combat formations. We
                                            must always remember,
                                            ‘Humans are more
                                            important than
                                            hardware’.
                                            We must always
                                            remember that Soldiers
                                            ARE the Army.”
                                            [Peter J. Schoomaker, CSA
                                            AUSA 2003
Person of the Year represents 2.6 million   Washington, DC]
     Joint
men and ARNG, USAR, and AMC MICP Training
           women of the Armed Forces
                                                                              32

				
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