Key Management Control Checklist for MWR Programs
Planning and Budgeting
CONTENTS
Function ………………………………………………………… Page 2
Purpose ………………………………………………………… Page 2
Instructions …………………………………………………….
Page 2
Comments ……………………………………………………… Page 2
Key Management Control Checklist ………………………… Page 3
Budget Preparation ...........................................…..
Page 3
Budget Execution...................... .......................... … Page 6
This checklist was prepared by
Financial Management Directorate
Family and MWR Command
Telephone DSN 261-7291
Commercial (703) 681-7291
FAX (703) 681-7348
Function
The function covered by these checklists is the administration, operation, and
management of Military Morale, Welfare, and Recreation (MWR) Programs and
Nonappropriated Fund Instrumentalities (NAFIs).
Purpose
1. The purpose of these checklists is to assist the IMCOM Region and garrison
personnel responsible for-a. MWR programs and NAFIs in administering APF and NAF resources
b. MWR program reporting requirements
c. Managing MWR programs
d. Other NAFIs
in evaluating the key management controls related to the areas listed below.
2. Many of the questions are also pertinent to NAFIs other than Garrison MWR
Operating Entity programs.
3. These checklists are not intended to cover all controls.
Instructions
Answers must be based on actual testing of key management controls, such as
document analysis, direct observation, interviewing, sampling, and simulation. Answers
that indicate deficiencies must be explained and corrective action indicated in
supporting documentation. These management controls must be evaluated at least
once every five years. Certification that this evaluation has been conducted must be
accomplished on DA Form 11-2-R (Management Control Evaluation Certification
Statement). This form is available on the world wide web at the following internet
address: ftp://pubs.army.mil/pub/eforms/pdf/a11_2r.pdf More information about the
Army Management Control Process can be obtained at the Army Internal Review
website: http://www.asafm.army.mil/fo/fod/mc/mc.asp or by contacting the FMWRC
Management Control Administrator, Gary Gregg at (703) 275-5214 or via email at:
Gary.Gregg@us.army.mil.
Comments
Help make this a better tool for evaluating management controls. Submit comments to
the Commander, Family and MWR Command, ATTN: IMWR-IR, 4700 King Street,
Alexandria, VA 22302-4410.
2
BUDGET PREPARATION
This checklist is intended for use in evaluating the effectiveness of controls over
budget preparation for the Garrison Morale, Welfare and Recreation Operating Entity
Fund. It is not intended to be all-inclusive and should be supplemented as necessary to
account for local operating conditions. Positive responses to questions indicate
operations are generally effective. Negative responses indicate potential problems.
When a negative response is recorded, managers should do additional research to
identify and correct the causes of the problems.
YES
NO
1. Was the current year's operating plan/budget prepared IAW the annual
Operating Guidance/Business Plan instructions issued by FMWRC
(available on the World Wide Web - http://armymwr.army.mil),
as supplemented by the IMCOM Region?
____ ____
2. Review the current operations, current NAF financial
statements and current IMCOM Region-approved budget. Are all
programs consistently portrayed in the budget and on the
financial statements using the proper program code and
department codes?
____ ____
3. Have all sources of income been identified in the budget
(including income available from recycling program) and are
they included under the appropriate program and department
code?
____ ____
4. Do the projections meet the applicable standards as
published in the Annual Operating Guidance/Business Plan?
____ ____
5. Have all managers completed ACTEDS required structured,
progressive, and sequential training for entry-level through their
current management position?
____ ____
6. Have all managers received training in the mandatory
Financial Management Budget System (FMBS) to automate
the budget preparation process?
____ ____
7. Were managers instructed on budget preparation
requirements so that budgets are consistently prepared?
____ ____
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YES
NO
8. Were monthly and quarterly variance reports from at
least 2 prior years available and used as a basis for preparing
department and activity level budgets?
____ ____
9. Were the reports available from Standard Management
Information Reports for Finance (SMIRF) for prior financial
information used as a basis to prepare department
and activity level budgets?
____ ____
10. Was the Financial Management Budget System (FMBS) used to
prepare the budget?
____ ____
11. Did department and activity managers annotate in budget
narratives any significant changes between historical results
and current projections?
____ ____
12. Did department and activity managers explain in
management narratives how budget goals will be achieved
or cost savings will be realized?
____ ____
13. Were division managers involved in reviewing program/
activity level budgets?
____ ____
14. Is documentation available to show the extent of division
managers involvement in the budget review process, and were
changes to program/activity level budgets documented?
____ ____
15. Compare the cash programmed for capital purchases and
the minor construction projects with the last 3 years of
expenditures. Is the amount of cash programmed realistic?
____ ____
16. Are CPMC items/projects budgeted from the correct source of
funds (APF/NAF)? If NAFs are budgeted for an APF-authorized item,
has a statement of nonavailability of APFs been obtained?
____ ____
17. Is there sufficient cash programmed to be available for all
budgeted CPMC items/projects?
____ ____
18.
Will the fund maintain a cash to debt ratio of between 1:1
and 2:1 (total cash to current liabilities)?
____ ____
4
19.
Were annual budgets for all Army NAFIs (except Civilian MWR
Funds (see AR 215-7) submitted, together with the five-year MWR plan
and the Commander's narrative, to the applicable IMCOM Region?
5
____ ____
BUDGET EXECUTION
This checklist is intended for use in evaluating the effectiveness of controls over
budget execution for the Garrison Morale, Welfare and Recreation Operating Entity
Fund. It is not intended to be all-inclusive and should be supplemented as necessary to
show local operating conditions. Positive responses to questions indicate operations
are generally effective. Negative responses indicate potential problems. When a
negative response is recorded, managers should do additional research to identify and
correct the causes of the problems.
YES
NO
1. Review documentation of budget variance analysis. Were
all significant department and activity level variances analyzed
and documented for cause, potential for recurrence, and
management action taken or planned to prevent recurrence?
____ ____
2. Does the FMWR Director and the garrison commander
or chief of staff receive periodic briefings on the progress made
on meeting budget goals?
____ ____
3. Were budget revisions prepared and submitted to the
IMCOM Region when circumstances beyond
management control cause significant budget
variances?
____ ____
4. Were budget revisions made at the activity level when
changes in operations are outside the scope of management?
____ ____
5. Has the chart reflecting actual results versus annual operating
goals as published in the annual operating guidance/business plan
been prepared and used to brief the garrison commander
and/or chief of staff at least quarterly?
____ ____
6. Have effective management actions been taken to correct
all "amber" or "red" conditions on the chart?
____ ____
6