R 111600Z JAN 05
FM CMC WASHINGTON DC(UC)
TO AL MARADMIN(UC)
UNCLASSIFIED//
MARADMIN 016/05
MSGID/GENADMIN/CMC WASHINGTON DC PR RFR//
SUBJ/MANAGEMENT CONTROL PROGRAM UPDATE//
REF/A/MCO 5200.24C /-/-//
REF/B/MCO 7540.2E /-/-//
NARR/REF (A) MCO 5200.24C MARINE CORPS MANAGEMENT CONTROL PROGRAM
(MCP)
REF (B) MCO 7540.2E RESOURCE, EVALUATION AND ANALYSIS (REA)
FUNCTION//
POC/MR. JOE CONDRY- RFR /DSN-224-4500/COM 703-614-4500 /-/-/-//
GENTEXT/REMARKS/1. THE PURPOSE OF THIS MARADMIN IS TO PROVIDE
CLARIFICATION OF MANAGEMENT CONTROL PROGRAM REQUIREMENTS. THESE
WILL BE INCORPORATED INTO REFERENCE (A) IN THE NEAR FUTURE.
2. IN SUPPORT OF THE PRESIDENT'S MANAGEMENT AGENDA, A GOAL OF
MARINE CORPS FINANCIAL MANAGEMENT IS TO PROVIDE TIMELY, ACCURATE
AND RELIABLE INFORMATION TO LEADERS IN ORDER TO MAKE SOUND
FINANCIAL DECISIONS. TO ACCOMPLISH THIS, MARINE CORPS SYSTEMS,
PROCESSES, POLICIES, AND PERSONNEL CAPABILITIES MUST BE MAXIMIZED
AND HARMONIZED. THE STRONG INTERACTION OF THESE KEY ELEMENTS OF
EFFECTIVE MANAGEMENT SHOULD RESULT IN CLEAN AND AUDITABLE FINANCIAL
STATEMENTS. IT IS THE GOAL OF DOD TO EFFECT THIS PRACTICE BY 2007.
THIS EFFORT REQUIRES ADDITIONAL EMPHASIS ON MANAGEMENT'S REQUIREMENT
TO HAVE DOCUMENTED ADEQUATE MANAGEMENT CONTROLS IN PLACE, WORKING,
AND ENSURING THAT FINANCIAL (AS WELL AS NONFINANCIAL) DATA ARE
RECORDED ACCURATELY. INACCURATE REPORTING HAS BEEN A PRIME FACTOR
FOR THE MARINE CORPS NOT ACQUIRING A CLEAN AUDIT OPINION IN THE PAST.
3. REF (A) REQUIRES MANAGEMENT TO ANNUALLY REVIEW AND REPORT THE
RESULTS OF THESE REVIEWS, INCLUDING ANY MATERIAL WEAKNESSES,
CORRECTIVE ACTIONS, AND LIST OF ASSESSABLE UNITS. MAJOR COMMANDS'
ANNUAL INTERNAL MANAGEMENT CONTROL REPORT SUBMITTED TO HEADQUARTERS,
MARINE CORPS SHOULD USE SUBORDINATE COMMANDS' INTERNAL MANAGEMENT
CONTROL STATEMENTS TO SUPPORT THEIR ANNUAL STATEMENT OF ASSURANCE.
4. REF (B) REQUIRES THAT COORDINATION OF THE MANAGEMENT CONTROL
PROGRAM AT COMMANDS BE ASSIGNED TO THE REA FUNCTION. THE REA
FUNCTION SHOULD INCLUDE IN ITS MCP COORDINATION AND OVERSIGHT DUTIES
THE REVIEW OF MANAGEMENT CONTROLS DURING ANY EVALUATIONS PERFORMED,
AND PROVIDE MANAGEMENT CONTROL PROGRAM TRAINING WHERE
IT IS DEEMED NECESSARY. (ORGANIZATIONS WITHOUT A COMPTROLLER/REA
ORGANIZATION ARE REQUIRED TO APPOINT A MANAGEMENT CONTROL PROGRAM
COORDINATOR TO ENSURE THAT THE REQUIREMENTS OF REFERENCE (A) ARE
ESTABLISHED AND REPORTING REQUIREMENTS ACCOMPLISHED.)
5. THE FOLLOWING SPECIFIC ACTIONS ARE REQUIRED:
A. REA. REFERENCE (B) SETS FORTH GUIDANCE AND THE REQUIREMENTS
FOR ESTABLISHING AN REA FUNCTION AT MARINE CORPS COMMANDS. ESSENTIAL
TO EFFECTIVE RESOURCE MANAGEMENT ARE FIVE KEY STRATEGIC AREAS:
INFORMATION SYSTEMS; INTERNAL MANAGEMENT CONTROLS; POLICIES AND
PROCEDURES; ORGANIZATION AND INFRASTRUCTURE, AND PERSONNEL. AS AN
ESSENTIAL ELEMENT TO EFFECTIVE RESOURCE MANAGEMENT, SOUND INTERNAL
CONTROLS, AND TO ENSURE ECONOMY, EFFICIENCY, EFFECTIVENESS, AND
INTEGRITY OF OPERATIONS, COMMANDERS ARE REQUIRED TO ESTABLISH AND
MAINTAIN AN REA FUNCTION AS AN INTEGRAL PART OF THE PERMANENT
COMPTROLLER ORGANIZATIONAL STRUCTURE.
B. FUNCTIONS. IN ADDITION TO THE FUNCTIONS OUTLINED IN
REFERENCE (B) REA ORGANIZATION FUNCTIONS INCLUDE THE FOLLOWING:
(1) FORMAL FISCAL EVALUATIONS AND ANALYSES. THE REA
FUNCTION INCLUDES CONDUCTING FORMAL REVIEWS AT THE COMMAND LEVEL TO
PROVIDE REASONABLE ASSURANCE THAT THE FOLLOWING MANAGEMENT CONTROL
OBJECTIVES ARE BEING ACHIEVED: (1) EFFECTIVENESS AND EFFICIENCY OF
OPERATIONS (2) RELIABILITY OF FINANCIAL REPORTING, AND (3)
COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS. FORMAL REVIEWS
CONSIST OF AT LEAST ANNUAL REVIEWS OF LOCAL POLICIES AND PROCEDURES
FOR THE FOLLOWING IDENTIFIED PROCESSES:
(A) FORMAL REVIEWS OF LOCAL POLICIES AND PROCEDURES
SHALL BE CONDUCTED FOR ACCURATE, TIMELY, RELIABLE, AND AUDITABLE
FINANCIAL INFORMATION IN (1) THE RECORDING OF RECEIPT AND ISSUE OF
GOODS AND SERVICES, (2) OBLIGATION, DEOBLIGATION, AND SETTLEMENT OF
TRAVEL ORDERS, (3) TIMEKEEPING, (4) THE RECORDING OF FINANCIAL
TRANSACTIONS FOR GOVERNMENT CONTRACT PROCUREMENT CARD (GCPC), AND
(5) TRAVEL CARD FINANCIAL TRANSACTIONS.
(B) ADDITIONAL INDEPENDENT ASSESSMENTS SHALL BE
REQUESTED THROUGH HEADQUARTERS MARINE CORPS (RFA). THIS FUNCTION
INCLUDES THE COORDINATION OF ASSESSMENTS WITH HEADQUARTERS AND
OVERSIGHT OF ACTIONS TAKEN TO RESOLVE ASSESSMENT FINDINGS.
HEADQUARTERS MARINE CORPS WILL PROVIDE NECESSARY RESOURCES SUCH AS
CHECKLISTS, INDEPENDENT THIRD PARTY ASSESSMENTS, AND GUIDANCE TO
ASSIST IN THE ASSESSMENT PROCESS.
(2) ANNUAL REPORT OF ASSESSABLE UNITS. REFERENCE (A)
ESTABLISHES A MARINE CORPS MANAGEMENT CONTROL PROGRAM REQUIREMENT
FOR MARINE CORPS COMMANDS, ACTIVITIES AND HEADQUARTERS STAFF
AGENCIES TO ESTABLISH AND MAINTAIN AN INVENTORY OF ASSESSABLE UNITS.
EACH COMPONENT'S INVENTORY OF ASSESSABLE UNITS SHALL BE REPORTED TO
HEADQUARTERS ANNUALLY. THE REPORT SHALL PROVIDE THE FOLLOWING PER
ASSESSABLE UNIT: (1) A DETAILED DESCRIPTION, (2) A RISK RATING AS
HIGH, MEDIUM OR LOW, AND (3) ASSOCIATED FUNCTIONS AND PROCESSES.
6. HQMC POC FOR THE MANAGEMENT CONTROL PROGRAM IS MR. JOE CONDRY,
CMC (CODE RFR), DSN 224-4500 OR COMMERCIAL 703 614-4500.//