Mid-Ohio Valley AGA Conference
Moving Toward a Clean Government-Wide Audit Opinion:
Current Challenges and Emerging Priorities to Drive Efficiency and
Reduce Costs
May 14, 2013
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Government-Wide Financial Management
Grant Thornton Panel
• Carlos Otal – Partner, Department of the Treasury
Government-wide Accounting Modernization Program (GWAMP)
and Intra-governmental (IGT) initiatives
• Tracy Greene – Partner, United States Marine Corps (USMC)
Audit
• Doug Criscitello – Managing Director, Former Federal CFO at
Department of Housing and Urban Development (HUD)
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Government-Wide Financial Management
Grant Thornton Panel
• Owen Barwell – Managing Director, Former Deputy CFO at
Department of Energy (DOE)
• Nancy Fleetwood – Senior Manager, Former Treasury
Executive Director of the Office of Payments Integrity
• Demek Adams – Senior Manager, Department of the Treasury
IGT initiatives
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Government-Wide Financial Management
Financial Report Overview
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Importance of the FR
Value of a Clean Audit Opinion
CFO perspective for FR/Audit Opinion
Based on the FY12 FR, three material weaknesses exist
1. Department of Defense (DoD)
2. Intra-governmental (IGT)
3. Compilation
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Government-Wide Financial Management
FR Challenge # 1: DoD Material Weakness
• DoD Historical Challenges
– Military equipment
– Dispersed resources
– Technology impediments
• DoD Progress-to-Date
– Components with clean audit opinion (e.g., DFAS)
– USMC Audit
• DoD Next Steps
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Government-Wide Financial Management
FR Challenge # 2: IGT Material Weakness
• IGT Historical Challenges
– Agency communication
– Timely reconciliation
• IGT Progress-to-Date
– Long Term Plan
– IGT Metrics & Scorecard Program
– Treasury Financial Manual (TFM) updates
• IGT Next Steps
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Government-Wide Financial Management
FR Challenge # 3: Compilation Material Weakness
• Compilation Historical Challenges
– Reliance on agency audit opinions
– Budgetary data not audited
– Lack of data granularity
• Compilation Progress-to-Date
– FMS/BPD merger into Fiscal Service
• Next Steps
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Improper Payments Recovery and Improvement Act
(IPERIA)
• President signed into law January 2013
– Requires Director of OMB to identify high-priority programs,
set targets with agencies
– Agencies to report high-dollars IP to Inspectors General, OMB
to make available on central website
– Requires IGs to review Agency IP estimates
– Requires agencies to check key databases prior to release of
funds
• Death Master File (SSA), Excluded Parties (GSA), Debt
Check (Treasury), Credit Alert System (HUD), List of
Excluded Individuals/Entities (HHS), & other databases
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Improper Payments Recovery and Improvement Act
(IPERIA)
• Formally establishes Do Not Pay Program for prepayment and
pre-award – OMB must report on success
– Agencies must use by June 1, 2013
• Some changes to computer matching process – OMB guidance
• Attorney General to report on using data on conviction and
incarceration status of individuals to prevent improper payments
• Requires OMB to establish & report to Congress on plan for
improving quality, accuracy, & timeliness of death data
maintained by SSA
• OMB to report on recovery audit contractors
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Government-Wide Financial Management
What's Next?
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CFO's Management Agenda
Initial findings from 2013 AGA CFO Survey
Changing the conversation (Focus on "Big G")
Evolving role of the CFO
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