The National Defense Authorization Act for Fiscal Year 2010 (Section 1003)
mandates that “the financial statements of the Department of Defense are
validated as ready for audit by not later than September 30, 2017.”
In support of the Army’s Deputy Chief of Staff, G-4 and in coordination with
the Office of the Assistant Secretary of the Army for Financial Management and
Comptroller (OASA(FM&C;)), LIA’s Audit Readiness and Compliance Team conducts
“Transaction Level Verification” to enable the institutionalization of logistics
audit readiness across the Army. The team conducts existence and completeness
(E&C;) testing of controls and business processes for General Equipment (GE),
Army Working Capital Fund (AWCF) Inventory, Operating Materials and Supplies
(OM&S;), and Government-Furnished Property (GFP). LIA also conducts follow-on
testing to ensure the remediation of units not meeting standard.
To assist Army units in meeting audit compliance requirements,
LIA developed a series of interactive guides for each of the
property categories,
GE,
AWCF-Inventory,
OM&S;
and GFP.
Additionally, LIA developed the
Interim U.S. Army Audit Readiness Procedural Guide
to serve as a bridge between outdated Army Regulations (AR) and
current Congressionally-mandated audit readiness requirements using
Federal Accounting Standards Advisory Board (FASAB) standards until
the Army publishes applicable AR updates. The guides are located on
this website under the Audit Readiness tab, AKO CAC authorization
required.
OASA(FM&C;) is currently revising the GE, OM&S; and AWCF testing process
to more closely align with the Office of the Secretary of Defense’s
audit readiness methodology of Generally Accepted Accounting Principles.
This improved "lifecycle" approach will include developing Notice of
Findings and Recommendations (NFRs) and formal Corrective Action Plans
(CAPs) provided by Army Commands. The revised process will reduce the
burden on the field and create a standard process based on lessons
learned from the Schedule of Budgetary Activity (SBA) audit.
FIAR defines the department's goals, priorities, strategy,
and methodology to become audit-ready