Auditing is not just about accounting anymore.

Author:Houck, Dale
 
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In April 2013, U.S. Army Logistics Innovation Agency (USALIA) was designated by Ms. Kathleen Miller, Assistant Deputy Chief of Staff, G-4 (Logistics) for Sustainment, to serve as lead for the Army Logistics Audit Readiness Program. At that time, the USALIA was charged with enabling the Army logistics community to meet federal and Department of Defense (DoD) audit compliance requirements by 2017.

Ms. Miller further challenged the team to go beyond achievement to ensure sustainment of auditable practices by Implementing improvements of a lasting quality--those that would result In an "Institutionalization" of audit readiness throughout the Army's logistics community. Partnering with the Army's Accountability and Audit Readiness Directorate and the Army Office of Business Transformation, the USALIA's Performance Review Group (PRG) quickly developed a plan that would help prepare the Logistics Domain In the Army's Business Mission Area to support the legislated mandate of producing auditable financial statements by September 30, 2017.

From August 2013 through December 2014, the PRG's actions focused on enhancing audit readiness and conducting logistics and financial management domain enterprise integration. The PRG implemented novel approaches to address both the transaction level performance of field units and the long-term logistics systems Improvements needed to achieve and sustain federal audit readiness mandates. All PRG actions were performed in coordination with the Army's financial management community. To date, this approach has realized significant results:

* Improved the Army's overall random existence and completeness of asset testing pass rates from 77 percent to 95 percent In less than one year. This supported the DoD Inspector General (DoD IG) clean opinion of Army's assertion of audit readiness for the Existence and Completeness of General Equipment assets (Independent Auditor's Report on the Attestation of the Existence, Completeness, and Rights of the Army's General Equipment, DoD Inspector General 2015 041, dated November 25, 2014).

* Identified duplicative systems and logistics activities that require evidence of financial controls to reasonably assure an auditor that the financial statements are accurate.

* Ensured that 100 percent of Army logistics systems were compliant with DoD Business Enterprise Architecture assertion requirements as required by National Defense Authorization Act 2012 and the DoD Office of the Deputy...

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