Joint Munitions Command prepares to be successful through audit readiness

By Tony Lopez (AMC)October 31, 2016

Joint Munitions Command prepares to be successful through Audit Readiness
The Joint Munitions Command has integrated automatic identification technology into supply depot operations as depicted here. The wholesale ammunition stockpile is 100% barcoded to help facilitate inventory, accountability, and auditability through ... (Photo Credit: U.S. Army) VIEW ORIGINAL

ROCK ISLAND ARSENAL, Ill. -- The U.S. Army Joint Munitions Command is preparing to have all its financial statements auditable under a new Department of Defense requirement.

In fiscal year 2012, the DoD was the only federal agency with a disclaimer opinion on the financial statements, meaning an auditor was not able to form an opinion. Congress mandated DoD have audit-ready financial statements by the end of fiscal year 2017, and introduced a bill that would penalize commands for not meeting its audit goals.

Financial statements are a tool utilized to make financial decisions by showing financial status. These statements list all assets, liabilities, expenses, income and equity. The first financial statement audit will take place at the beginning of fiscal year 2018.

To improve the Army's business processes to achieve an unqualified opinion, the Army has developed the Financial Improvement Plan, which is the roadmap for audit readiness. The Office of the Assistance Secretary of the Army, (Financial Management and Comptroller), has the overall lead for the Army to achieve audit readiness, and oversees the audit readiness contractors responsible for executing the Army's plan.

According to a 2013 article in Army Sustainment Magazine, asset management accountability is a key component for the Army to achieve audit readiness. The Army's goal is to have mission-critical assets and asset records ready for independent audit. A plan is in place, and the Army is actively supporting commands and installations in this transition to a new way of doing business, stated the article.

"Audit readiness ensures we are efficient, effective and at the best value, and proves we have accountability," said Brig. Gen. Richard B. Dix, commander, Joint Munitions Command. "Accountability of ammunition assets is critical during an environment of shrinking budgets."

The goal of the Army's Audit Readiness is to prove it is a responsible steward of the taxpayer's dollars. In addition, with an accurate accountability of its resources, JMC can properly plan for future requirements and request funding from Congress. "The majority of people don't understand audit readiness or how their actions impact the financial statements," said Jennifer Mulert, Audit Readiness lead, Resource Management Directorate. "As a government employee, you are impacting the Army's financial statements anytime you spend the Army's dollars; manage human resources; manage, move or use assets; execute or monitor a contract; or enter or certify time for payroll. Therefore, you are accountable to the Army meeting the Congressional mandate."

"Senior Leaders are focused on improving business processes and achieving auditable financial statements, so you should be too," said Mulert. "Ask yourself, "How can I contribute to this effort?"

The ASA FM&C understands that becoming auditable is a huge task and any improvement is a step in the right direction. Systems that record financial transactions were outdated, not used in a consistent and reliable manner, and contained minimal detail. Also, standardized processes were not applied. The average asset age hindered the availability of documentation, due to many assets being acquired more than 80 years ago.

"If everyone follows correct processes and procedures, and can locate sufficient source documentation, audit should be fairly painless. All DoD employees have a stake in this effort, personally and professionally, and need to communicate its importance," said Val Wynn, Audit Readiness lead, Resource Management Directorate.

"Efficiently managing our resources allows us to better support our Soldiers and their mission by providing ammunition at the right place, the right time and at the right cost," said Dix.

The U.S. Army Joint Munitions Command produces small-, medium- and large-caliber ammunition items for the Department of Defense. The primary mission of JMC is to manage the production, storage, issue, and demilitarization of conventional ammunition for all U.S. Military Services. JMC is the sustainment and logistics integrator for life-cycle management of ammunition and provides a global presence of technical support to U.S. combat units wherever they are stationed or deployed.

Related Links:

Joint Munitions Command webpage

Joint Munitions Command on facebook