HQ, JMC and Tooele Army Depot personnel conduct an inventory of munitions assets currently stored at TEAD to validate quantity, condition and storage location. (This photo was taken before COVID mask and social distancing requirements.)
HQ, JMC and Tooele Army Depot personnel conduct an inventory of munitions assets currently stored at TEAD to validate quantity, condition and storage location. (This photo was taken before COVID mask and social distancing requirements.)
(Photo Credit: U.S. Army) VIEW ORIGINAL

As the logistics integrator for life-cycle management of ammunition providing a global presence of technical support to frontline units, the Joint Munitions Command plays a key role in the U.S. Army’s audit mission. The Army has a goal for a clean Army Working Capital Fund audit opinion for Fiscal Year 2021 and a clean General Fund audit opinion for FY23. The ultimate goal of audit activities is to prove that, at any given time, Army assets are accounted for, reportable and in the proper condition, illustrating to the American public and Congress that JMC is a good steward of the tax payer dollars it has been allocated.

The audit process is comprised of three separate events, beginning with a Test of Design walk through, where the Army shows how it is complying with standards. If successful, the Army graduates to a Test of Effectiveness where the Army provides documentation of prolonged compliance throughout the testing period. The audit process finishes with Existence and Completeness counts where the Army’s Independent Auditor performs inventories to ensure the culmination of work results in an accurate financial record.

Along with DA and AMC, HQ JMC personnel have developed Corrective Action Plans (CAPs) dealing with design issues, where a process did not meet audit standards or a process was not properly documented. The focus of these CAPs are to implement standardized, documented processes that support the financial statement, implement effective monitors and controls, and implement methods of retaining evidence that functions were performed according to standard. The Audit Team at HQ JMC focuses on enforcing compliance through process discipline and implementing any newly standardized processes.

Proactively, Complementary User Entity Controls (CUECs) were provided to JMC sites to clarify polices for reviewing functional operations such as receipts, condition code changes, physical inventory adjustments, retail issuances and turn-ins, shipments, account management, and output data provided by Army.

The CEUCs, along with the CAPs, provide risk coverage for future audit exercises and sound financial accountability.

The culture is shifting, and the JMC enterprise understands that operational discipline will lead to audit success. David Banian, Director of Munitions Logistics, states, “While JMC has made tremendous progress to date, continued hard work and dedication are still required to achieve a sustainable audit opinion.” Each person throughout the JMC Enterprise has the ability to support the ammunition audit by following documented procedures and timelines, supporting the Army’s audit efforts.

“The Army will not achieve an audit opinion unless we prioritize audit efforts to implement improved business processes and stronger internal controls. We must eliminate waste, optimize budget execution, and achieve full visibility of our resources to ensure proper stewardship of taxpayer dollars. Empower your personnel to build the highest levels of current and future readiness,” said James E. McPherson, Under Secretary of the Army.

From its headquarters at Rock Island Arsenal, JMC operates a nationwide network of conventional ammunition manufacturing plants and storage depots, and provides on-site ammunition experts to U.S. combat units wherever they are stationed or deployed. JMC's customers are U.S. forces of all military services, other U.S. government agencies and allied nations.