CG-9 Internal Controls Program Overview. CG-9 Rory Souther Association of Government Accountants Audio Conference June 8, 2011

Transcription

1 CG-9 Internal Controls Program Overview CG-9 Rory Souther Association of Government Accountants Audio

2 Agenda 1. USCG / CG-9 Mission and Organization 2. History of Coast Guard 3. Internal Control Program Development 4. Internal Control Program Assessment Process and Maturity 5. Accomplishments and Impacts 6. Moving Forward 1

3 USCG Mission Coast Guard History Authorized on August 4, 1790 Transferred to the Department of Homeland Security (DHS) in 2003 Coast Guard Mission The Coast Guard is a military, multi-mission, maritime service and one of the nation s five Armed Services. Its mission is to protect the public, the environment, and U.S. economic interests in the nation s ports and waterways, along the coast, on international waters, or in any maritime region as required to support national security. The Coast Guard ensures the Safety, Security, and Stewardship of U.S. maritime interests and is the lead federal agency in the maritime domain for law enforcement, incident response, homeland security, and disaster management. 2

4 USCG Mission The Coast Guard has 11 statutory missions 1. Ports, waterways, and coastal security 2. Drug interdiction 3. Aids to navigation 4. Search and rescue 5. Living marine resources 6. Marine safety 7. Defense readiness 8. Migrant interdiction 9. Marine environmental protection 10. Ice operations 11. Other law enforcement 3

5 USCG Organization Commandant (CG-00) Vice Commandant (CG-09) Asst. Comdt for Intelligence and Criminal Investigations (CG-2) Asst. Comdt for Resources (CG-8) Director of Governmental & Public Affairs (CG-092) Judge Advocate General & Chief Counsel (CG-094) Enterprise Strategic Mgt & Doctrine (CG-095) Deputy Commandant for Operations (DCO) CG Chief of Staff/ Deputy Commandant for Mission Support (DCMS) Director of Operational Logistics Atlantic Area Pacific Area Asst. Comdt for Marine Safety, Security & Stewardship (CG-5) Asst. Comdt for Capability (CG-7) Asst. Comdt for Human Resources (CG-1) Asst Comdt for Engineering & Logistics (CG-4) Asst Comdt for C4IT (CG-6) Asst Comdt for (CG-9) Force Readiness Command Districts Mission Execution Units Districts Mission Execution Units 4

6 Directorate (CG-9) Mission and Vision Mission Acquire and deliver more-capable, interoperable assets and systems, and high quality, timely services that support Coast Guard forces in executing missions effectively and efficiently Vision The Coast Guard Directorate empowers a professional and credentialed workforce motivated by leadership, integrity and teamwork to deliver the assets and systems that increase operational readiness, enhance mission performance and create a safer working environment 5

7 CG-9 Organization CG-9 Assistant Commandant for, Chief Officer (CAO) CG-91 Head of Contracting Activity (HCA) Director of Contracting and Procurement CG-92 Deputy Assistant Commandant for Director of Services CG-93 Director of Programs Program Executive Officer (PEO) CG-921 Office of Workforce Management CG-922 Office of International Programs CG-924 Office of Support CG-925 Office of Strategic Planning & Communications CG-926 Office of Research, Development, Test and Evaluation CG-928 Office of Resource Management CG-931 Major Systems Program Manager (Aviation) CG-932 Major Systems Program Manager (Surface) CG-933 Major Systems Program Manager (C4ISR) 6

8 History of Coast Guard Prior to July 2007, Coast Guard acquisition and related support functions were split among various directorates Beginning in 2004, numerous audits and reviews by the DHS Office of the Inspector General (OIG), the General Accountability Office (GAO), and the Defense University (DAU) and internally generated lessons learned identified weaknesses in the Coast Guard acquisition s processes and structure In 2006, the Coast Guard Commandant directed the consolidation of Coast Guard acquisition into a single directorate CG-9 officially stood up July 13, 2007 In July 2007, FMFIA Section II Self Assessment identified Deepwater acquisition as a reportable condition 7

9 History of Coast Guard Blueprint The Blueprint for Reform provided a roadmap for reforming the Coast Guard acquisition function The current version of the Blueprint (titled Strategic Plan, Blueprint for Continuous Improvement) focuses on sustainable acquisition mission execution The Blueprint aligns with the GAO cornerstones for assessing federal acquisition organizations: - Organizational Alignment and Leadership - Policies and Procedures - Human Capital - Information Management and Stewardship 8

10 Internal Control Program Development Early internal control initiatives (FY 2007/2008) Identified root causes of acquisition deficiencies, many related to internal controls Followed a top-down, self-assessment process for addressing internal controls - Completed questionnaires (developed by DHS and CG-8) aimed at assessing the effectiveness and efficiency of operations and compliance with laws and regulations - Developed remediation plans for internal control deficiencies identified through this assessment and the Blueprint - Incorporated remediation plans into the CG-9 Mission Action Plan and Blueprint for resolution 9

11 Internal Control Program Development Initiating the formal CG-9 Internal Control Program (early FY 2009) Baseline existing CG-9 processes and controls against GAO cornerstones and other acquisition assessment methodologies Established a formal CG-9 Internal Control Program focused on operational (vice financial) controls that involved a holistic (top-down and bottoms-up) approach assessing internal controls Addressed the five phases of an internal control assessment (Planning, Documentation, Testing, Evaluation, and Reporting) and Remediation efforts Developed the CG-9 Internal Control Program Implementation Guide Chartered the Internal Control Coordination Working Group (ICCWG) 10

12 Internal Control Program Assessment Process and Maturity Assessment steps (Life Cycle Approach) Planning Documentation Testing Evaluation Reporting Remediation 11

13 Internal Control Program Assessment Process and Maturity Planning CG-9 determines the scope of its internal controls assessment, including conducting a risk assessment Grew scope over time to include the field sites (e.g., Project Resident Offices) and all of headquarters offices within CG-9 12

14 Internal Control Program Assessment Process and Maturity Documentation CG-9 documents its business processes, identifies internal controls, and assesses the design of internal controls - Documents internal controls and business processes - Develops flowcharts - Evaluates the design effectiveness of controls - Develops Control Evaluation Matrices - Identifies key controls Over time reduced number of key controls from 81 (FY 2009) to 57 (FY 2011) due to the maturing of business processes and consolidation of key controls CG-9 updates internal control documentation regularly 13

15 Internal Control Program Assessment Process and Maturity Testing CG-9 tests key controls that are designed properly to assess their operating effectiveness Testing evolved from a compliance focus to including efficiency and effectiveness attributes Several CG-9 offices instituted continuous monitoring activities which reduces the level of effort needed for internal control testing Each CG-9 office has gradually taken more ownership during of the testing process CG-9 conducts operating effectiveness testing semi-annually 14

16 Internal Control Program Assessment Process and Maturity Evaluation CG-9 assesses and classifies internal control deficiencies identified during the documentation and testing phases The majority of deficiencies identified are documented within the Blueprint and tracked until resolution CG-9 conducts evaluation activities of internal control deficiencies semiannually 15

17 Internal Control Program Assessment Process and Maturity Reporting CG-9 reports the results of the evaluation phase via the Coast Guard s annual internal controls assurance statement for FFMIA CG-9 has improved the efficiency of self reporting during the annual USCGwide assessment process 16

18 Internal Control Program Assessment Process and Maturity Remediation CG-9 develops action plans to address internal control deficiencies and executes the action plans CG-9 continually identifies areas for self-improvement CG-9 develops remediation action plans semi-annually 17

19 Accomplishments and Impact Directorate Financial Management standard operation procedures Financial account continuous monitoring activities (audits) Contracting compliance reviews Major System Manual (MSAM) compliance reviews Contracting Officer Warrant Program (COWP) centralization Formalizing PM responsibility for internal controls Model for CG Human Resources and CG Engineering and Logistics Directorates (Implementation Guide) 18

20 Moving Forward Moving from compliance to efficiency Improving the Blueprint migrated from checklist of action items to measures of efficiency and effectiveness Continuing to review process / key controls and adjust as required Working internally and externally on lessons learned 19

21 Questions 20