Six Recommendations to Prepare for FIAR Beyond 2015

Viana Rickett

In less than three years, the Department of Defense (DoD) and its components have to develop audit readiness plans to support assertion requirements for all general and working capital fund financial statements.

Because there are processes and accounts that are more significant for the working capital funds, it is important that the DoD and its components develop plans that leverage general fund efforts, but appropriately address all significant working capital fund processes and accounts.

Prior to developing the working capital fund audit readiness plans, the DoD should do the following:
  • Identify processes for which the internal control environment for general and working capital funds are the same.
  • Identify systems that support both general and working capital fund processes.
  • Identify and prioritize proprietary and budgetary accounts unique to working capital funds.
  • Read working capital fund authorization to determine relevant budget restrictions.
  • Read Statement of Federal Financial Accounting Standards (SFFAS) Number 4 and determine impact on agency.
  • Identify sources of “exchange revenue” and significant trading partners.

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