R 251916Z FEB 15 PSN 744284H29
FM CNO WASHINGTON DC
SUBJ/FY 2015 FINANCIAL STATEMENT AUDIT//
MSGID/GENADMIN/CNO WASHINGTON DC/N09/FEB//
1. The FY 2015 financial audit of the Navy*s Schedule of Budgetary Activity
(SBA) is now underway. A private sector accounting firm, Cotton & Company,
is performing the audit. Over the next year, these professionals will look
at how well we execute the Navy�s business processes and manage its funds in
meeting our fiduciary responsibility to Congress and the public.
2. You will be expected to show how each dollar you receive is used and that
every transaction is properly documented. Transactions will be sampled by
the auditor for completeness, accuracy and consistency. Our daily financial
performance will be reflected in the auditor*s overall public opinion of the
strength of U.S. Navy financial operations in meeting mission requirements.
3. Commanders shall ensure full cooperation with the auditors and
efficiently respond to their requests for information and documentation. In
addition, leaders will review their commands� progress in making prescribed
changes to business systems and processes to promote financial auditability.
Changes should be expedited wherever possible. Our mutual challenge is to
bring the same discipline to our business operations which we apply to our
seagoing operations. Where you have oversight of financial and business
processes your personal involvement is essential so that we not only achieve
audibility success but remain good stewards of the American public�s dollars.
4. The Assistant Secretary of the Navy (Financial Management and
Comptroller) will meet with me and the commanders of major commands
periodically throughout this fiscal year to review SBA audit progress. These
meetings will include metrics on performance (e.g., timeliness, accuracy,
etc.) and corrective actions across Navy commands required to bring
organizations into full compliance with financial audit standards.
5. Commanders should be aware that financial statement audits, along with
periodically released assets, are now part of our standard business practice.
6. Released by the Vice Chief of Naval Operations.//