R 101824Z JUN 09
UNCLASSIFIED//
MARADMIN 0350/09
MSGID/GENADMIN,USMTF,2006/CMC WASHINGTON DC PR RFA(UC)/F002//
SUBJ/COMMAND PREPARATION IN SUPPORT OF MARINE CORPS FINANCIAL STATEMENT AUDIT//
REF/A/MSGID:CMC WHITE LETTER/01-08/-//
REF/B/MSGID:MCO 4400.150E/-/-//
REF/C/MSGID:MCO 7300.21A/-/-//
REF/D/MSGID:DODFMR 7000.14R /VOL 5, CHP 33/-//
REF/E/MSGID:DODFMR 7000.14R /VOL 3, CHP 8/-//
REF/F/MSGID:MCO 5200.24D/-/-//
REF/G/MSGID:MARADMIN 133/09/-//
NARR/REF A OUTLINES CMC INTENT TO SEEK AN INDEPENDENT AUDIT OF USMC FINANCIAL STATEMENTS. REF B IS RQMT FOR ASSIGNMENT IN WRITING OF ACCOUNTABLE OFFICERS AND AUTHORIZED RECIPIENT FOR SUPPLY PURCHASES.
REF C IS RQMT THAT FUND MANAGERS ARE ASSIGNED DUTIES IN WRITING AND PROVIDES GUIDANCE FOR MAINTAINING FINANCIAL RECORDS. REF D IS DOD RQMT CONCERNING APPOINTMENT OF ACCOUNTABLE OFFICIALS. REF E IS DOD RQMT TO PERFORM OFFICIAL REVIEWS OF ALL OUTSTANDING MATERIAL, TRAVEL, AND SERVICE ORDERS. REF F PROVIDED GUIDANCE ON STABLISHMENT AND TEST OF INTERNAL CONTROLS.  REF G IS SCHEDULE OF AUDIT READINESS TRAINING PROVIDED TO USMC COMMANDS.//
GENTEXT/REMARKS/1. THE CMC GOAL OF OBTAINING AN INDEPENDENT AUDIT OF USMC FINANCIAL INFORMATION STATED IN REF A HAS BEEN APPROVED BY THE UNDER SECRETARY OF DEFENSE, COMPTROLLER.
AN AUDIT OF THE MARINE CORPS STATEMENT OF BUDGETARY RESOURCES (SBR) AND FUND BALANCE WITH THE U.S. TREASURY WILL COMMENCE OCTOBER 2009 (FISCAL YEAR 2010).
2. AN AUDIT WILL DETERMINE IF THE USMC HAS COMPLIED WITH APPLICABLE LAWS, REGULATIONS AND ACCURATELY REPORTED FINANCIAL INFORMATION TO DEPARTMENT OF DEFENSE OFFICIALS, THE CONGRESS, AND THE PUBLIC. A FAVORABLE AUDIT WILL ENHANCE THE INSTITUTIONAL CREDIBILITY NECESSARY TO MAINTAIN REQUIRED FUNDING LEVELS DURING FUTURE PROGRAM AND BUDGET REVIEWS.
3. THE AUDIT WILL REVIEW SELECT FINANCIAL AND NONFINANCIAL RECORDS AT EACH COMMAND TO DETERMINE IF EVIDENCE EXISTS TO SUPPORT VALUES REPORTED IN THE USMC SBR. THIS WILL INCLUDE VERIFICATION OF:
3.A. INDIVIDUAL(S) ASSIGNED TO APPROVE ORDERS FOR MATERIAL OR SERVICES, RECEIVE ORDERED MATERIAL OR SERVICES, CERTIFY TRANSACTIONS FOR PAYMENT, OR MANAGE COMMAND FUNDS ARE ASSIGNED THESE DUTIES IN WRITING IAW REF B, C,  AND D.
3.B. SOURCE DOCUMENTS EXIST FOR ALL ORDERS TO OBTAIN GOODS AND SERVICES FROM REQUEST THRU PAYMENT. SOURCE DOCUMENTS HAVE BEEN MAINTAINED AND CAN BE MADE AVAILABLE UPON REQUEST WITHIN 5 BUSINESS DAYS.
3.C. ACCOUNTING RECORDS ARE TIMELY AND ACCURATELY UPDATED FOR ALL BUSINESS EVENTS THAT IMPACT THE FINANCIAL TRANSACTION CYCLE (I.E. COMMITMENT, OBLIGATION, EXPENSE, AND PAYMENT) IAW REF C AND E.
3.D. REVIEW COMMAND ESTABLISHMENT AND ADHERENCE TO INTERNAL CONTROL REQUIREMENTS IAW REF F.
4. TO PREPARE FOR THE UPCOMING AUDIT, COMMANDS SHOULD ENSURE THE FOLLOWING ACTIONS ARE REVIEWED AND COMPLETED NLT 15 SEPT 2009:
4.A. ENSURE THAT ALL PERSONNEL RESPONSIBLE FOR REQUESTING, APPROVING, RECEIVING, OR CERTIFYING TRANSACTIONS FOR PAYMENT ASSOCIATED WITH MATERIAL AND SERVICES ORDERS  (WHICH INCLUDE TRAVEL, PCS, CIVILIAN AND MILITARY PAY, REQUISITIONS, CONTRACTS, ETC.) ARE ASSIGNED THESE DUTIES IN WRITING. FURTHER, ENSURE PERSONNEL ASSIGNED FUND MANAGEMENT DUTIES ARE ALSO APPOINTED IN WRITING. APPOINTMENT LETTERS MUST BE READILY AVAILABLE FOR AUDITOR REVIEW UPON REQUEST WITHIN 2 BUSINESS DAYS.
4.B. ENSURE FULL COMPLIANCE WITH REQUIREMENTS OF REF B, C AND E WHEN PERFORMING REVIEWS OF OUTSTANDING TRANSACTIONS.
4.C. COMMANDS MUST ALSO ENSURE THAT SOURCE DOCUMENTS EXIST THAT SUPPORT RECORDED OBLIGATION, EXPENSE, AND PAYMENT TRANSACTIONS. SOURCE DOCUMENTS MUST BE READILY AVAILABLE FOR AUDITOR REVIEW UPON REQUEST WITHIN 5 BUSINESS DAYS. IT IS ANTICIPATED THAT DURING JAN 2010, FIELD COMMANDS WILL BE REQUIRED TO PROVIDE SOURCE DOCUMENTATION FOR AUDIT SAMPLE TRANSACTIONS PROVIDED BY CLIENT LIST DISCUSSED DURING TRAINING PROVIDED UNDER REF G.
4.D. DC PR (RFA) PROVIDED TRAINING TO COMMAND REPRESENTATIVES ON AUDIT SUPPORT AND PREPARATION AS OUTLINED IN REF G. COMMANDS SHOULD ENSURE THESE TRAINED REPRESENTATIVES PROVIDE LOCAL SUPPORT AND TRAINING TO ALL COMMAND PERSONNEL INVOLVED WITH REQUESTING, APPROVING, RECEIVING, OR CERTIFYING FOR PAYMENT MATERIAL AND SERVICE ORDERS PRIOR TO THE AUDIT START.
5. ADDITIONAL INFORMATION ON PREPARING FOR THE AUDIT, TO INCLUDE CHECK LISTS, TRAINING MATERIALS, AND FREQUENTLY ASKED QUESTIONS CAN BE FOUND AT URL: HTTPS:(SLASH SLASH) EHQMC.USMC.MIL/ORG/PR/FISCALOPS/ACCOUNTING/AUDITPREP
6. POC CONCERNING THE SUBJECT AUDIT ARE MR. JOEL NANKIVEL, HQMC-RFA, JOEL.NANKIVEL@USMC.MIL, 703-614-8684 OR CWO5 PATRICK S. SWEENEY, HQMC-RFA, PATRICK.S.SWEENEY@USMC.MIL, 703-693-9823.
7. RELEASE AUTHORIZED BY (SES) CHARLES. E. COOK III, ASSISTANT DEPUTY COMMANDANT, PROGRAMS AND RESOURCES DEPARTMENT.//