Introduction Review and Approval of Changes to Funding Authority per the General Ledger

1. IntroductionReview and Approval of Changes to Funding Authority per the General Ledger

2. Audit Readiness The challenges of financial management at the Department of Defense (DoD) has been well documented. Neither the Department nor the Military Services has successfully passed the scrutiny of an independent audit. As a result, each Service has been directed by the Under Secretary of Defense (Comptroller) (USDC(C)) to undertake efforts to provide financial information with greater reliability, accuracy, and timeliness. A critical factor in these efforts at the Navy is the Financial Improvement Program (FIP). The Naval Sea Systems Command (NAVSEA) FIP represents a series of Department of the Navy (DoN)-wide and command-specific efforts designed to enhance internal controls, standardize processes, and obtain an unqualified audit opinion. The following training material is a part of that effort to provide the NSWC Carderock community an overview of key internal controls for Property, Plant and Equipment in preparation for a financial audit.

3. Potential Weaknesses and Deficiencies This module explains the steps and documentation necessary for the NAVSEA comptroller representative to ensure that all system users have the appropriate system access rights and that all SAARs are reviewed and approved by authorized supervisors Budgetary authority in command general ledgers may be inaccurate. Funding authority may not be approved by appropriate individual(s) designated in writing in accordance with management's general/specific criteria. The approved FAD may be inaccurately entered in the accounting system. Execution may exceed funding authority.

4. Obtain supporting documentation Obtain system-generated listings of journal vouchers. Verify that the accounts are in accordance with the USSGL posting logic Confirm that all changes have been approved by management. Module Assessment Quiz Module Review

5. Performance The performance of this control is on a monthly basis

6. Control Description All journal vouchers (JVs) are supported by documentation. Changes and the associated supporting documentation are reviewed and approved by management in accordance with the delegation of authority for accuracy of accounts, amounts, dates, and descriptions prior to recording by DFAS, if applicable. This approval is evidenced by the reviewer’s signature and date. (Manual/Detective)

7. References - • Listing of journal vouchers • Supporting documentation for journal vouchers -

8. Methodology As part of the FIP sustainment effort, NAVSEA HQ and the GF field activities comptroller departments need to implement the following steps to mitigate any potential risks associated with this process.

9. Methodology Step1

10. Methodology Step 2

11. Methodology Step 3

12. Methodology Step 4

13. Review