Managers Internal Control Program MICP FY 2013 Workshop

Managers’ Internal Control Program (MICP) FY 2013 Workshop The overall classification of this Training is: UNCLASSIFIED

UNCLASSIFIED Managers’ Internal Control Program Identifying Assessable Units and Coverage Breadth UNCLASSIFIED 2

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Objectives ØUnderstand why we need assessable units ØUnderstand what is an assessable unit ØBe able to identify assessable units ØBe able to explain the roles of assessable unit managers ØDescribe the coverage and breadth of your assessable units UNCLASSIFIED 3

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth What is an Assessable Unit? Any organizational, functional, programmatic or other applicable subdivision of an organization that allows for adequate analysis. The assessable unit is required to have an appointed and adequately trained assessable unit manager. UNCLASSIFIED 4

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth What Are Assessable Units? Ø Distinct organizational functions Ø Reoccurring processes Ø Critical to mission Ø Clearly recognizable Ø Independent UNCLASSIFIED 5

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth What are functions? Ø Activities that consume time Ø Have dedicated staff Ø Address organizational initiatives Ø Result in major work products Ø Carry out significant objectives/goals UNCLASSIFIED 6

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth 1995 – Division Airborne Operation Static Line Incident Ø Soldiers Receive Pre-Airborne Operation Instructions from Trained Jumpmaster, who attended Jumpmaster Course. Ø T 10 -C Parachutes Issued by the Quartermaster/Supply activity. Ø Prior to Loading Aircraft –Jumpmaster Inspects Soldiers equipment. Ø Jumpmaster identified T 10 -C Static Lines Separated (Cut) and operation ceased. Ø Investigation team conducts formal investigation. UNCLASSIFIED 7

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Why do we need to identify Assessable Units? Ø Systematic way to leverage the internal controls of the organization Ø Identify the role/function the assessable unit performs for mission or objective success Ø Facilitates evaluations and remedies Ø Includes management in the process UNCLASSIFIED 8

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Do I use an Organization Chart to Identify Assessable Units? UNCLASSIFIED 9

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth How do I identify Assessable Units? Ø Alert rosters Ø Phone rosters Ø Distribution lists Ø Walk around the area and observe Ø Organization charts UNCLASSIFIED 10

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Don’t forget to include these ways of identifying Assessable Units: Ø Committees Ø Satellite/Regional Offices Ø Boards or Governing Bodies Ø Chain of Command Approach UNCLASSIFIED 11

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Examples of Assessable Units: Ø Administrative Office Ø Finance Office Ø Safety Office Ø Security Office Ø Medical Office Ø Planning Division Ø Operations Division UNCLASSIFIED 12

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Example of Assessable Unit Segmentation: Ø Administrative Office • Awards • Evaluations • Orders • Leaves/Passes • Promotions • Payroll UNCLASSIFIED 13

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Assessable Units – Other Examples Activity – Open Discussion Ø How do you identify assessable units within your organization? Ø What other assessable units do you have? Ø Do impediments exist that make it difficult to identify or recognize assessable units? Ø Are your assessable units consistent in their approach to further segmentation? UNCLASSIFIED 14

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth What are the benefits of identifying Assessable Units? Ø Documenting mission areas • Ensures areas are appropriately managed • Ensures responsibilities have been properly designated • Ensures appropriate involvement of personnel Ø Permits effective evaluation of internal controls UNCLASSIFIED 15

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth 2004 – C 130 Hercules Crashes on Field Landing Strip Ø 23 Dec C-23 lands on airfield and reports construction done on runway that requires a formal Notice To Airmen (NOTAM). Ø No NOTAM transmitted. Ø 29 Dec C-130 Lands in the night crashing and totaling aircraft. Ø Mission support on airstrip ceased throughout investigation and repair work. UNCLASSIFIED 16

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Who Manages Assessable Units? Ø Department/Division/Chief/Director Ø Senior Management with primary/direct responsibility Ø Appointed by the Commander/Principal Ø Individuals who know the day-to-day operations UNCLASSIFIED 17

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth What are the Roles of the Assessable Unit Manager? Ø Ensure all mission areas are covered Ø Ensure all risk assessments are conducted/reviewed Ø Ensure internal controls are in place to mitigate identified risks Ø Ensure internal controls are documented and tested Ø Oversee and monitor corrective actions for all weaknesses identified Ø Appoint and inventory MICP responsible individuals UNCLASSIFIED 18

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Assessable Unit Inventory - Example UNCLASSIFIED 19

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Assessable Unit Inventory - Example UNCLASSIFIED 20

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Assessable Unit Inventory - Example UNCLASSIFIED 21

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Assessable Unit Managers – Other Examples Activity – Open Discussion Ø What level are your assessable unit managers? Ø Do they direct evaluations? Ø Do they address weaknesses identified? Ø Do they have direct communication with the Commander/Principal? Ø How frequent do MICP Coordinators communicate with assessable unit Managers? UNCLASSIFIED 22

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Do you have proper Coverage? UNCLASSIFIED 23

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Do you have proper Coverage? Ø Look at your organization • Are all risks addressed? • Are assessable units identified for all areas of risk? Ø Are all material (major) functions/activities evaluated? Ø Extremely subjective UNCLASSIFIED 24

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Assessment of Our Objectives Ø Understand why we need assessable units Ø Understand what is an assessable unit Ø Be able to identify assessable units Ø Be able to explain the roles of assessable unit managers Ø Describe the coverage and breadth of your assessable units. UNCLASSIFIED 25

UNCLASSIFIED Identifying Assessable Units and Coverage Breadth Questions ? UNCLASSIFIED 26