# Presentation: 532998

## PERSONAL PROPERTY

- Status Meeting
- March 02, 2006

## AGENDA

- FY 2005 Audit
- Audit Calendar
- Unresolved Audit Issues
- Matrix of Missing Documentation
- Anticipated Projects by Line/Staff Office

- Unreconciled Payments Report (UPR)
- Property Managers
- Inventory
- Training
- Reports
- Internal Controls

## FY 2005 AUDIT

- FY 2005 findings and related Corrective Action Plans (CAP) can be found in the Line Office Books (Tab 20)

## AUDIT CALENDAR

| Date | Task | Whom Responsible | To 
Whom |
| --- | --- | --- | --- |
| March 6 | Documentation due to the Property Office for any adds, deletes or changes  | Line/Staff Property
Managers | Property 
Office |
| March 14 | Run depreciation reports for December | Personal Property | n/a |
| March 19 | Financial reports due | Personal Property | Finance |

## CALENDAR (cont.)

- Important Audit Date
**6****th** of every month: *Due date for documentation to the Property Office*
- For the entire FY 2006 Audit Calendar, go to: _http://www.pps.noaa.gov/audit_calendar.html_

## UNRESOLVEDAUDIT ISSUESPlease verify the following projects’ projected date of acceptance (PDA).

- NMAO
- McArthur (Vessel) transfer to Marshall Is.
- Project Manager: CDR Michelle Bullock
- PDA: Waiting on Congress – January 2006
- NOS
- Software Development (DG133C04CT0066 - $3,670,879.48)
- Project Manager: (Marine Chart Div.)
- PDA: December 2005

## MATRIX OF MISSING DOCUMENTATION

- The following Line/Staff Offices have missing documentation due to the Property Office:
- NESDIS
- CD0001477422: Missing P.O. or contract
- NWS
- CD0001440818: Missing signed CD-509
- NWR-S007: Missing revised CD-509; communicated to Peter Georgiou

## DOCUMENTATIONCHECKLIST

- Revised the required documentation list into a checklist
- More user-friendly way to determine that all required documentation is provided to the Personal Property Branch

## NESDIS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- GOES Program Management
- Project Manager: Unknown
- PDA: Unknown
- NSOF (NOAA Satellite Operations Facilities) Network Core (Data Communications Network for the move to the new Suitland building)
- Project Manager: Paul Pegnato
- PDA: April 2006
- CLASS Software version 4.0 – next milestone
- Project Manager: Rick Vizbulis
- PDA: April 2006

## NESDIS (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- Search and Rescue Satellite (SARSAT) Upgrade
- Project Manager: Thomas Button
- PDA: June 30, 2006
- Low Rate Information Transmission (LRIT)
- Project Manager: Marlin Perkins
- PDA: Summer 2006
- N/O/P/Q SSGS Mods (Ground System Modifications for Satellites N, O, P, and Q)
- Project Manager: Keith McKenzie
- PDA: 4th Qtr 2006

## NESDIS (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- GOES N (Satellite)
- Project Manager: Steve Kirkner
- PDA: Launched in March 2006; accepted approximately six months after – September 2006
- DCS Auto Process System
- Project Manager: Unknown
- PDA: FY2006 (in litigation)
**What else is there?**

## NMAO PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- Twin Otter Aircraft
- Project Manager: Randy TeBeest
- PDA: July 2006
- Henry Bigelow
- Project Manager: Jeffrey Fuller
- PDA: September 2006
- Hi’ialakai Fit-out
- Project Manager: Michael Webb
- PDA: September 2006

## NMAO (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- Sonar for Long Range Fishery Vessel
- Project Manager: Michael Webb
- PDA: September 2006
- Bow Thruster- Upgrade to Thomas Jefferson
- Project Manager: Frank J. Colohan
- PDA: FY 2006
- Sale of Turbo Commander
- Project Manager: Julie Robertson
- PDA: Unknown
**What else is there?**

## NMFS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- Law Enforcement Records Mgmt Software
- Project Manager: Mark Spurrier
- PDA: May 2006
**What else is there?**

## NOS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- ADCAT Software
- Project Manager: Dennis Hoar
- PDA: April 2006
- Catamaran (50 feet)
- Project Manager: Dave Lott
- PDA: March 2006
- Catamaran (67 feet)
- Project Manager: Dave Lott
- PDA: July 2006
**What else is there?**

## NWS PROJECTSPlease verify the following projects’ projected date of acceptance (PDA).

- Air Handling Replacement NWSTG
- Project Manager: William Johnson
- PDA: March 2006
- IBM Computer Lease
- Project Manager: Unknown
- PDA: March 2006
- ORDA (Open-systems Radar Data Acquisition) Software
- Project Manager: Unknown
- PDA: March 2006

## NWS (cont.)Please verify the following projects’ projected date of acceptance (PDA).

- Uninterruptible Power Supply (UPS) for NWS Telecommunication Gateway (NWSTG)
- Project Manager: William Johnson
- PDA: April 2006
**What else is there?**

## UPR TRENDS

|  | FY 2005 |  | FY 2006 |  | Combined |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Jan 27 | Feb 28 | Jan 27 | Feb 28 | Jan 27 | Feb 28 |
| TOTAL | 1,261 | 785 | 4,527 | 4,265 | 5,484 | 5,050 |
| AGO | 0 | 0 | 40 | 19 | 40 | 19 |
| CAO | 6 | 0 | 1 | 501 | 7 | 501 |
| CFO | 4 | 0 | 0 | 5 | 4 | 5 |
| CIO | 0 | 0 | 7 | 297 | 7 | 297 |
| GC | 57 | 5 | 8 | 10 | 65 | 15 |
| NESDIS | 0 | 0 | 265 | 22 | 265 | 22 |

- In thousands (000s)

## UPR TRENDS (cont.) 

|  | FY 2005 |  | FY 2006 |  | Combined |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Jan 27 | Feb 28 | Jan 27 | Feb 28 | Jan 27 | Feb 28 |
| NMAO | 16 | 0 | 826 | 314 | 842 | 314 |
| NMFS | 224 | 176 | 1,247 | 924 | 1,471 | 1,100 |
| NOS | 465 | 365 | 408 | 515 | 873 | 880 |
| NWS | 95 | 157 | 689 | 220 | 784 | 377 |
| OAR | 88 | 80 | 935 | 1,434 | 1,023 | 1,514 |
| USAO | 2 | 2 | 101 | 4 | 103 | 6 |
| WFM | 0 | 0 | 0 | 0 | 0 | 0 |

- In thousands (000s)

## AGED UPR(90 DAYS & OLDER)

|  | FY 2005 | FY 2006 | Total 90 Days & Older UPR |
| --- | --- | --- | --- |
| TOTAL | 785 | 879 | 1,664 |
| AGO | 0 | 0 | 0 |
| CAO | 0 | 0 | 0 |
| CFO | 0 | 0 | 0 |
| CIO | 0 | 0 | 0 |
| GC | 5 | 4 | 9 |
| NESDIS | 0 | 0 | 0 |

- In thousands (000s)

## AGED UPR (cont.)(90 DAYS & OLDER)

|  | FY 2005 | FY 2006 | Total 90 Days & Older UPR |
| --- | --- | --- | --- |
| NMAO | 0 | 0 | 0 |
| NMFS | 176 | 249 | 425 |
| NOS | 365 | 85 | 450 |
| NWS | 157 | 94 | 251 |
| OAR | 80 | 444 | 524 |
| USAO | 2 | 3 | 5 |
| WFM | 0 | 0 | 0 |

- In thousands (000s)

## PROPERTY MANAGERS

- The following people have been identified:
- Carol Christian, AGO
- Judy Mickens, CAO
- Kathy Stowe, CIO
- Barbara Beasley, CFO
- Regina Jackson, GC
- Bernadette Foreman, NESDIS

- Jeanette McDonald, NMAO
- Robert Ziobro, NMFS
- Sloane Strother, NOS
- Jan Evans, NWS
- Deborah Martin, OAR
- George White, USAO
- Janice Long, WFM

## PROPERTY MANAGERS (cont.)

- Need Alternates for the following LOs:
- CIO
-  Alternates
- Denise Tyler-Littleford, AGO
- Cynthia Burley, CAO
- Gail Perry, CFO
- Thornette Johnson, GC
- Brian Brown, NESDIS
- Sheila Foster, NWS

- Millie Ingels, NMAO
- Rhonda Perry, NMFS
- George Ann Stansbury, NOS
- Mary Manoogian, OAR
- Kathy Lewis, USAO
- Michelle Masias, WFM

## FY 2006 INVENTORYSCHEDULE

- Annual Physical Inventory

| Quarter | Norfolk | Kansas City | Boulder | Seattle | Natl. Capital Region |
| --- | --- | --- | --- | --- | --- |
| First | WMO  OCFO
AGO   OAR
OCAO NMFS
OCIO | WMO  OCFO
AGO   OAR
OCAO NMFS
OCIO  NLSC | WMO  OCFO
AGO   OIG
OCAO
OCIO | WMO  OCFO
AGO   OAR
OCAO NMFS
OCIO  OIG | WMO  OCFO
AGO   OAR
OCAO
OCIO |
| Second | NESDIS
NOS | NESDIS
NOS | NESDIS
OAR | NESDIS
NOS | NESDIS
NOS |
| Third | NWS
NMAO | NWS
NMAO
NRC (NWS) | NWS | NWS
NMAO
OGC | NWS    NMFS
NMAO  OGC
USEC |
| Fourth | BIS | BIS | BIS | BIS |  |

## FY 2006 INVENTORYOVERDUE (AS OF 2/6/2006)

- NORFOLK

| Line/ Staff Office | Custodial Area | Custodian | Total inventory Items | Unsighted Items |
| --- | --- | --- | --- | --- |
| AGO | 540IUE700 | Jack Salmon | 39 | 34 |
| CAO | 540IVE240 | Anita Holley | 100 | 100 |
| CIO | 540IPE310 | Rob Bruner | 47 | 40 |
| OAR | 54027E159 | Barbara Shifflett | 39 | 34 |
| WFM | 5403IE610 | Kathleen Carlson | 247 | 247 |

## PROPERTY ACCOUNTABILITY OFFICERS (PAO) REQUIRING TRAINING

- NMFS
- Herbert Kaufman
- Garry Mayer
- Roy Crabtree
- Harold Robbins
- Scott Nichols
- Norman Bartoo
- Churchill Grimes
- James Herkelrath
- Willis Hobart
- Norman Mendes

- CAO
- Mark Napoli
- NOS
- Daniel Basta
- Rolin Meyer
- NWS
- John McNulty
- Paul Moersdorf
- GC
- Michele Kuruc
- Joel LaBissonniere

## PAO TRAINING (cont.)

## PROPERTY CUSTODIAN (PC) TRAINING

- Training is available to Property Contacts and Board of Review members
- Classes to be conducted through the internet and teleconferencing from October 2005 to April 2006
- 12 classes conducted from October through February 15th
- Upcoming classes – March 8 (Pacific), March 15 (Eastern) - *full*, April 5 (Mountain), April 12 (Eastern), April 19 (Pacific), April 28 (Eastern)
**TIME IS RUNNING OUT!! **
**ONLY 6 CLASSES REMAIN!!**

## PC TRAINING (cont.)

## FEBRUARYREPORTS

- Financial
- Submitted February 17th
- Operational
- Hard copies will be provided at quarter-ends (December, March, June, & September)
- Access to electronic versions of the reports will be provided via eDocs

## EDOCS

- Email with link to electronic versions of the Line/Staff Office books

- Please see document eDOCS.000.632 Version 1 NMFS at:
- _[https://www.edocsonline.com/externalaccess.jsp?document=4A646A504D4B737A366C4E78704874754A43715856673D3D](https://www.edocsonline.com/externalaccess.jsp?document=4A646A504D4B737A366C4E78704874754A43715856673D3D)_

## What is OMB Circular A-123?

**Sets policies and standards for evaluating, improving, and reporting on internal controls.**
**Implements the Federal Manager’s Financial Integrity Act (FMFIA) of 1982 **
- Agencies must annually evaluate and report on
- Section 2 -Adequacy and effectiveness of internal controls
- Section 4 – Financial management systems

## Section 2 Reviews

- Three to Four Programs will be reviewed each year.
- Program reviews look for
- Program effectiveness and results,
- Internal Controls, and
- Compliance with Laws and Regulations

## Section 2 Reviews

- Programs selected for review in FY 2006
- NOAA Pacific Region Facility (CWIP)
- Pacific Coastal Salmon Recovery Fund (Grants)
- Fisheries Research Vessel Replacement #4 (CWIP)
- Geostationary Systems (GOES-R)

## Appendix A (added December 2004) 
Requires a separate assurance statement on the effectiveness of the internal controls as of June 30.
Requires management to perform direct testing of the internal controls to support the new assurance statement.

**Appendix A (added December 2004) **
- Requires a separate assurance statement on the effectiveness of the internal controls as of June 30.
- Requires management to perform direct testing of the internal controls to support the new assurance statement.

## Why was A-123 revised?

**Passage of Sarbanes-Oxley Act of 2002 (SOX)**** **
- Requires publicly-traded companies to strengthen their internal controls.
- The passage of SOX resulted from the Enron and World Com scandals.
- Served as the push for the Federal government to re-evaluate its current policies relating to internal controls and management’s responsibilities.

## Timetable for Appendix A (Department-wide)

**1. Planning Phase**
**September 2005 **– Submitted DOC implementation plan to OMB.
**October 2005** – Identified key processes to examine. Personal Property is one of the key processes selected for review.
**November 2005 **– Began documentation process to gain understanding of internal controls.

## Timetable for Appendix A (Department-wide)

**2. Evaluating Internal Controls at the NOAA Level**
**Spring 2006** – Questionnaire being developed to get a better understanding of
- Management’s philosophy and operating style,
- Risks that may interfere with management’s objectives,
- Lines of communication in and outside agency,
- Control mechanisms in place, and
- Monitoring of internal controls.

## Timetable for Appendix A (Department-wide)

**3****. ****Evaluation Internal Controls at the Process Level (Key Financial Process)**
**December 2005** – Gained an understanding of key internal control processes and identify key internal controls.
**March 2006** – Complete documentation and develop testing plan.

## Timetable for Appendix A (Department-wide)

**4. Testing Controls at Transaction Level**
**May/June 2006 **– Test controls in key financial processes to ensure that controls are
- Effectively designed, and
- Functioning properly.

## 
5. Concluding, Reporting, & Correcting 
June 2006 – Review testing results to identify deficiencies and weakness in internal controls.
July 2006 – Develop corrective action plans.
November 2006 – Annual assurance statement issued in Performance and Accountability Report (annual audit report).
Annual assurance statement as of June 30.
Agencies can revise assurance statements.

**5. Concluding, Reporting, & Correcting **
**June 2006** – Review testing results to identify deficiencies and weakness in internal controls.
**July 2006** – Develop corrective action plans.
**November 2006 **– Annual assurance statement issued in Performance and Accountability Report (annual audit report).
- Annual assurance statement as of June 30.
- Agencies can revise assurance statements.

## Example of Property Cycle and How it would be tested

- Determine if there is money available in budget to purchase property.  (LO)
- We will want to see evidence that this was done.
- Requester prepares CD-435, Procurement Request and forwards to Personal Property Representative.  (LO)
- We will be looking for authorized signatures on documents.

## Property Cycle (Con’t)

- The representative ensures proper coding of object class and accounting classification.  (Property)
- Representative also determines if there is excess property that can be used to fulfill the request.  Then the representative approves the request.  (Property)
- We will want to see the authorized representative’s signature.

## Property Cycle (Con’t)

- Request is sent to the Procurement Office to prepare CD-404, Supply, Equipment, or Service Order.  Then procurement approves the CD-404 before it is entered into the purchasing system.  (Acquisitions)
- We will want to see authorized signatures on documents.
- When property is received, the property Custodian reviews the invoice and items ordered to ensure they agree with property received.  (LO)
- We will want to see evidence that the invoice was reviewed.

## Property Cycle (Con’t)

- Within 5 days of acceptance of property, the completed and signed original copy of the CD-509, Property Transaction Request and a copy of the invoice is sent to the servicing Personal Property Office indicating the receipt, date, the location, the serial number, and the bar code number.  (LO)
- We will look to see authorized signatures completed within 5 day time frame.

## Property Cycle (Con’t)

- Personal Property reviews the CD-509 to ensure the information is accurate and complete.  Once the CD-509 is accurate, Personal Property enters the information into the Sunflower Assets system.  (Property)
- We may select a sample of CD-509’s and trace them to the Sunflower Assets system and also select a sample from Sunflower and trace back to the CD-509.
- The original invoice is then forwarded to the Finance Office for payment.  (Finance)
- We may use the selected sample above and trace it from Property to Finance to ensure the transaction is completed properly.

## 

What are your questions or comments?

- What are your questions or comments?

## What are your agenda items for our next meeting?

Date, time and location for next meeting
April 6 @ 11:00 a.m.
	  SSMC4 - Rm 8150

- Date, time and location for next meeting
- April 6 @ 11:00 a.m.
- 	  SSMC4 - Rm 8150

## SUPPLEMENTALINFORMATION

## HEADQUARTERS CONTACTS

- NOAA Research
- Steven J. Bernstein
- NESDIS
- Steven J. Bernstein
- Holly E. Turri
- NOAA Weather & Climate
- Holly E. Turri
- Doreen A. Kaduri
- NOAA Fisheries
- Dominic Blakey

- NOAA Finance & Admin.
- Jennifer Foster
- NOAA Marine & Aviation Operations
- Jennifer Foster
- NOAA Ocean Service
- Barbara Carson
- Deputy Under Secretary
- Jennifer Foster
- Inventory
- Larry Oates
- Ryland Pine

## HEADQUARTERS CONTACTS (cont.)

- Branch Chief
- Jon Pinner
- Audit Leads
- Brian Mason
- Tom Deckard
- Support
- Paul Myers
- Derek Jones
- UPR
- Melissa Nelson
- Heritage Assets
- Lynette Joynes

- Norfolk
- Anita Holley, Acting Branch Chief
- Robin MacMillan (PM)
- Boulder
- Ron Jakaitis, Branch Chief
- Rudy Nunez (PM)
- Sheila Hensley
- Kansas City
- Anthony Harrison, Branch Chief
- Gilly Elsea (PM)
- Seattle
- David Petre, Branch Chief
- Elizabeth Valezona (PM)
- Kim Hutchinson