Slide1 : Office of the Deputy Inspector General for Auditing AUDITING CAREER OPPORTUNITIES OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE November 2004 Richard B. Vasquez
(703) 604-9174
rvasquez@dodig.osd.mil
DoD SIZE : DoD SIZE Largest enterprise in the world
Budget authority
FY 2005 - $524B, FY2004 - $403B (est.)
Exceeds cost of running rest of GOV
10 times as great as any other nation
$12B short over the last year paying for basics of warfighting in Iraq: troops, equipment maintenance, spare parts, and training
Force structure
Active military (1,431,964)
DoD civilians (669,745)
DoD TOP PRIORITIES : DoD TOP PRIORITIES Successfully Pursue the GWOT
Strengthen Combined/Joint Warfighting Capabilities
Transform the Joint Force
Optimize Intelligence Capabilities
Counter Proliferation of WMD
DoD TOP PRIORITIES : DoD TOP PRIORITIES Improve Force Manning
Develop New Concepts of Global Engagement
Sustain Homeland Security
Streamline DoD Processes
Reorganize DoD and USG to Deal with Pre-War Opportunities and Post-War Responsibilities
Slide5 : DEPARTMENT OF DEFENSE Secretary of Defense Chairman Joint Chiefs of Staff Inspector General Under Secretaries and Asst. Secretaries Military Departments Army Navy
Air Force Defense Agencies IG reports to Secretary of Defense
Slide6 : SELECTION OF INSPECTORS GENERAL Nominated by the President
The Honorable Joseph E. Schmitz Inspector General Department of Defense Confirmed by the Senate
MISSION : MISSION Promote effective, efficient, and economical operations
Prevent and detect fraud, waste, and abuse
Provide policy for, and conduct, audits and investigations
Receive and investigate complaints
Keep the Secretary of Defense and Congress fully informed
Slide8 : Inspector General OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE Deputy
Inspector General
for Auditing Deputy
Inspector General for Inspections/Policy Deputy
Inspector General for Investigations Deputy
Inspector General for Intelligence
Slide9 : OFFICE OF INSPECTOR GENERAL Allocation of Personnel Total strength as of September 2004: 1,271 personnel.
Slide10 : ODIG-AUD ORGANIZATIONAL CHART
Slide11 : LOCATION OF AUDIT OFFICES
AUDITING STANDARDS : AUDITING STANDARDS Apply Government Auditing Standards (commonly called the Yellow Book) developed by U.S. Government Accountability Office
Government Auditing Standards incorporate applicable standards of the American Institute of Certified Public Accountants
Key standards require independence, competent staff, adequate documentation of conclusions, and appropriate staffing and reporting of audit results
Slide13 : PERFORMANCE FINANCIAL TYPES OF AUDITS
FINANCIAL AUDITS : FINANCIAL AUDITS Financial Statement Audits provide reasonable assurance about whether the financial statements present fairly:
The financial position,
Results of operations, and
Cash flows in conformity with generally accepted accounting principles
FINANCIAL AUDITS : FINANCIAL AUDITS Financial related audits address:
Problem disbursements
Contractor payments
General and application controls over financial systems
AUTOMATED FINANCIAL SYSTEMS GROUP : AUTOMATED FINANCIAL SYSTEMS GROUP In FY 2003, Defense finance and accounting systems:
Disbursed over $416 billion in payments to people and businesses
Processed over 12 million invoices
Processed 121 million accounting transactions
Managed over $197 billion in retirement trust funds
Accounted for $13 billion in foreign military sales
Made 6.8 million travel payments
AUTOMATED FINANCIAL SYSTEMS GROUP : AUTOMATED FINANCIAL SYSTEMS GROUP Systems audits address:
Development and acquisition of finance and accounting systems
General and application controls systems
System’s ability to produce auditable financial statements
PERFORMANCE AUDITS : PERFORMANCE AUDITS Independent assessment of the performance of a government organization, program, activity or function
Economy and efficiency
whether an entity is acquiring, protecting, and using its resources in the most productive manner to achieve program objectives
PERFORMANCE AUDITS : PERFORMANCE AUDITS
Program audits
effectiveness of a program and measure the extent to which a program is achieving its goals and objectives
Audit provides information to improve public accountability and facilitate DoD management decision making and corrective actions
Slide20 : PERFORMANCE AUDITS DoD Audit Issue Areas Acquisition Program
Base Realignment and Closure
Construction and Installation Support
Environment
Finance and Accounting
Slide21 : Health Care and Human Capital
Information Technology Resources
Intelligence
Logistics
Contracting Oversight PERFORMANCE AUDITS DoD Audit Issue Areas
Slide22 : AUDITORS ADD VALUE BY HELPING TO CONTROL RISK Test controls in existing processes & systems
Recommend corrections for control weaknesses
Provide up-front advice on controls for new processes and systems in development
Test validity of management risk assessments and accuracy of data/reports used by managers
Slide23 : AUDITORS ADD VALUE BY PROMOTING CHANGE AND REFORM
Identify opportunities for improvement
Verify status and results of reforms
Identify barriers to reform
Help fine tune reforms to maximize benefits and control risks
AUDIT RELATED ACTIVITIES : AUDIT RELATED ACTIVITIES Auditors may perform services other than audits:
Management consulting
Participate in problem solving DoD management advisory teams
Assist investigators and federal prosecutors
HOW WE WORK : HOW WE WORK
Project Team
Project Manager
Team Leaders: 2 to 3
Staff Auditors: 2 to 9
HOW WE WORK : HOW WE WORK Supervision
Junior staff auditors work under day-to-day supervision of, and normally travel with, a team leader or senior auditor
Project Managers are official supervisors, who work closely with all members of the team, prepare performance evaluations, and are responsible for career development of team members
HOW WE WORK : HOW WE WORK Travel
Staff auditors may expect up to 50% travel
Usually 2 to 3 auditors travel together. Junior auditors are not expected to travel alone. Travel expenses are paid by the Government.
Travel is typically from 1 to 3 weeks at one time. Policy is to return home at least every 3 weeks (except on occasional overseas trips).
Amount of travel depends on audit assignment (i.e., number and location of audit activities, time sensitivity of issues being reviewed, etc.).
AUDITOR TRAVEL : AUDITOR TRAVEL From Most Offices
Frequently throughout the United States
Occasionally, audits in Europe (primarily Germany)
Occasionally, audits in Pacific (primarily Hawaii, Japan, & Korea)
FREQUENT TRAVEL LOCATIONS : FREQUENT TRAVEL LOCATIONS Eglin AFB, FL
San Diego, CA
San Antonio, TX
Tampa, FL
FREQUENT TRAVEL LOCATIONS : FREQUENT TRAVEL LOCATIONS Dayton, OH
Omaha, NE
Fort Monmouth, NJ
Mechanicsburg, PA But not all in the Sun Belt
Slide31 : CONTINUING EDUCATION REQUIREMENTS
Minimum of 80 hours of training every 2 years
Junior Auditor Training Course (for all new auditors) - 2 weeks (at IG Training Institute, in Rosslyn, VA)
Intermediate and Advanced Auditor Training Courses
TRAINING : TRAINING IS software
Report writing
CPA/CIA coaching
Defense Systems Management College
Specialized subjects (e.g., systems acquisition, financial statements)
OJT
Slide33 : FEDERAL BENEFITS Salary: Commensurate with education and experience
Advancement: Based on performance and demonstrated potential
Training: Heavy emphasis on enhancing employee skills
Vacation: Earn 13 days per year (Increases to 20 days after 3 years and 26 days after 15 years)
Slide34 : Sick Leave -- earn 13 days per year
Holidays -- 10 days per year
Health/Life insurance
Retirement/Thrift Savings Plan
Equal Employment Opportunity
Flexible Work Schedule
Earn credit hours for overtime worked
Transit subsidy for employees using mass transit or vanpools. FEDERAL BENEFITS
Slide35 : AUDITOR INTERN PROGRAM Major duties:
Work as a member of an audit team
Research applicable laws, regulations
Gather data and prepare analyses
Prepare working papers
Interact with clients
Salary: Approximately $10.00 per hour
Travel may be required
Full-time employment opportunity
Global Defense Posture : Global Defense Posture
Upcoming Changes in Force Structure
Pre-August 2004
Main Locations and Troop Strengths
Europe – About 100,000
Asia – Over 40,000
Southwest Asia – 10,000+ (?)
Post-August 2004
Troop drawdowns announced for Europe and Asia
Global Defense Posture (cont’d) : Global Defense Posture (cont’d) Freedom of Action (catchphrase)
FROM - large concentrations of troops at permanent overseas bases
TO – rotating troops for short tours at smaller outposts
Rolling process over 10 years
Global Defense Posture (cont’d) : Global Defense Posture (cont’d) Reduce U.S. installations abroad
From 850 bases to 550 (35%)
Withdrawal of 70,000 U.S. troops and 100,000 family members from bases in Germany and South Korea
Europe – From 560 bases to 360
Asia – 12,500 U.S. troops off Korean peninsula
CBO study - Initial costs of $7B, eventual annual savings of $1B
Global Defense Posture (cont’d) : Global Defense Posture (cont’d) Foresees 3 types of oversees arrangements:
Main operating bases
Permanently stationed forces & family support structures
Forward operating sites
Limited number of military personnel & possibly stored equipment
Rotational rather than permanently stationed forces
Cooperative Security locations
Little or no U.S. presence
Maintained by contractor or host nation
Audit Impact of Force Structure Changes : Audit Impact of Force Structure Changes
Base locations will change
Operational concepts will change
Support concepts will change
Examples of Prior Audit Coverage : Examples of Prior Audit Coverage
HNS SWA
CBD IPE
IDP/CM
AT/FP
Y2K
Don’t Ask, Don’t Tell
Slide42 : OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE
http://www.dodig.osd.mil For more information visit us on
the web at: 400 Army Navy Drive
Slide43 : OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE