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AMC
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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
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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
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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
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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
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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
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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
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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
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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
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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
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AR 11-2, Management Control
AMC
Prescribes policies, responsibilities, and
requirements
Reinforces accountability of Army commanders and
managers
1 Aug 94
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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
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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
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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
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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
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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
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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
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