By order of the air force instruction 65 202

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BY ORDER OF THE SECRETARY OF THE AIR FORCE

AIR FORCE INSTRUCTION 65-202

19 MARCH 2020

Financial Management

ADMINISTRATION OF A BASE FINANCIAL MANAGEMENT QUALITY

ASSURANCE PROGRAM

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available for downloading or ordering on the e-Publishing website at e-Publishing.af.mil

RELEASABILITY: There are no releasability restrictions on this publication

OPR: SAF/FMFC Supersedes: AFI65-202, 25 January 2016

Certified by: SAF/FMF (Thomas J. Murphy)

Pages: 55

The instruction implements the Air Force Policy Directive (AFPD) 65-2, Managers' Internal Control Program. This instruction provides general guidance for the Quality Assurance Manager (QA Manager) to administer the Quality Assurance Program (QAP) in base level financial management (FM) operations. It applies to all civilian and uniformed members of the Regular Air Force, Air Force Reserve (AFR) and Air National Guard (ANG). Ensure that all records created as a result of processes prescribed in this publication are maintained in accordance with Air Force Manual (AFMAN) 33-363, Management of Records, and disposed of in accordance with the Air Force Records Disposition Schedule (RDS). Refer recommended changes and questions about this publication to the Office of Primary Responsibility (OPR) using the AF Form 847, Recommendation for Change of Publication; route AF Forms 847 from the field through the appropriate functional chain of command. This publication may be supplemented at any level, but all Supplements must be routed to the Air Force Accounting and Finance Office (SAF/FMFC) for coordination prior to certification and approval. The authorities to waive wing/unit level requirements in this publication are identified with a Tier ("T-0, T-1, T-2, T-3") number following the compliance statement. See AFI 33-360, Publications and Forms Management, for a description of the authorities associated with the Tier numbers. Submit requests for waivers through the chain of command to the appropriate Tier waiver approval authority, or alternately, to the requestor's commander for non-tiered compliance items.

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AFI65-202 19 MARCH 2020

SUMMARY OF CHANGES

This document has been substantially revised and needs to be completely reviewed. Major changes include implementing publication formatting changes. It also updates and clarifies the Financial Management (FM) self-assessment program, control monitoring activities, comptroller access guide, and the Defense Enterprise Accounting and Management System (DEAMS) access and segregation of duties guide.

Chapter 1--PURPOSE OF THE QUALITY ASSURANCE PROGRAM

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1.1. General. ..................................................................................................................

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Chapter 2--ROLES and RESPONSIBILITIES

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2.1. Deputy Assistant Secretary for Financial Operations (SAF/FMF). .......................

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2.2. MAJCOM/AFIMSC/DRU/FOA Financial Managers. ..........................................

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2.3. Base-Level comptroller and Staff. .........................................................................

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2.4. Base-Level QA Manager. .......................................................................................

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Figure 2.1. Suggested QA Manager Duties................................................................................

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Chapter 3--CONCEPT OF THE QA MANAGER

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3.1. How to be a Successful QA Manager. ....................................................................

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3.2. Collaboration. .........................................................................................................

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Chapter 4--PROCESS TOOLS

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4.1. General. ...................................................................................................................

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4.2. Performance Indicators. ..........................................................................................

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Figure 4.1. Performance Indicators for Base FM (Sample List). ...............................................

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4.3. Discrepancy Tracking. ............................................................................................

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4.4. Discrepancy Tracking Report. ................................................................................ 10

Figure 4.2. Example of Discrepancy Tracking Report............................................................... 10

4.5. Quality Assurance Review (QAR). ......................................................................... 10

Figure 4.3. Example of a Quality Assurance Review Memo. .................................................... 12

Figure 4.4. QAR Schedule Matrix. ............................................................................................ 14

4.6. Process Improvement Team. ................................................................................... 14

4.7. Quality Assurance Meetings. .................................................................................. 14

AFI65-202 19 MARCH 2020

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4.8. QA Meeting Minutes. ............................................................................................. 15

Chapter 5--SELF-ASSESSMENT PROGRAM

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5.1. General. .................................................................................................................. 16

5.2. Reviewer. ............................................................................................................... 16

5.3. Frequency. .............................................................................................................. 16

5.4. QA Manager Role. ................................................................................................. 16

5.5. Substitution of Responses. ..................................................................................... 16

5.6. Validation of Self-assessment Responses. ............................................................. 16

Chapter 6--CROSS-FEED PROGRAM

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6.1. General. ................................................................................................................... 17

6.2. Good Ideas and Initiatives. ..................................................................................... 17

6.3. Local Cross-Feeds. .................................................................................................. 17

Chapter 7--FRAUD PREVENTION

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7.1. General. .................................................................................................................. 18

7.2. Education. .............................................................................................................. 18

7.3. Collusion. .............................................................................................................. 18

7.4. Reporting . ............................................................................................................. 19

Chapter 8--CONTROL MONITORING ACTIVITIES

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8.1. Financial Managers Records Reviews. .................................................................. 20

8.2. Financial Management Operational Controls. ....................................................... 20

8.3. Mandatory Reviews, Audits, and Validations (T-1). ............................................. 21

Chapter 9--THE QUALITY ASSURANCE PLAN AND HANDBOOK

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9.1. QA Plan. .................................................................................................................. 22

9.2. QA Manager Handbook. ........................................................................................ 22

Figure 9.1. Example of a QA Plan. ............................................................................................ 23

Figure 9.2. QA Handbook Table of Contents. ........................................................................... 25

Chapter 10--IN-HOUSE TRAINING

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10.1. General. .................................................................................................................. 26

10.2. Role of QA Manager in Training. .......................................................................... 26

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AFI65-202 19 MARCH 2020

10.3. Training Topics. ..................................................................................................... 26

10.4. Training Plan. ......................................................................................................... 26

Figure 10.1. Sample November Training Plan............................................................................. 27

10.5. Training Report. ..................................................................................................... 27

Figure 10.2. Sample November Training Report. ........................................................................ 27

10.6. Where to Conduct Training. ................................................................................... 28

10.7. Trainer. ................................................................................................................... 28

10.8. Documentation. ...................................................................................................... 28

10.9. Validating Training Effectiveness. ........................................................................ 28

Figure 10.3. Sample Training Validation Worksheet................................................................... 29

Attachment 1--GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION

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Attachment 2--DISCREPANCY TRACKING INFORMATION

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Attachment 3--COMPTROLLER ACCESS GUIDE (CAG)

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Attachment 4--CONTROL MONITORING ACTIVITY PROCEDURES

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Attachment 5--DEAMS SYSTEM ACCESS AND SEGREGATION OF DUTIES GUIDE

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AFI65-202 19 MARCH 2020

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Chapter 1

PURPOSE OF THE QUALITY ASSURANCE PROGRAM

1.1. General. The quality assurance program is directly linked to the Air Force value-- "Excellence in All We Do" and is a visible commitment to superior performance and continuous improvement in supporting America's Airmen. The program helps reinforce the obligation to taxpayers to ensure adequate internal controls are in place to properly safeguard the nation's and taxpayer resources. The Financial Management (FM) organization is a vital team in the support of Air Force operations at installations across the globe. The allocation of resources to meet mission requirements, the responsibility for taking care of the financial needs of Airmen, and protecting the hard-earned treasure of the American people demand we perform with increasing effectiveness and efficiency. While evolving Financial Improvement and Audit Remediation (FIAR) requirements, smaller staffs, high deployment tempo and resource constraints provide challenges to daily operations, FM leaders and staff strive to sustain high performance levels. That means, financial managers need a way to measure performance and to continually meet standards of excellence across the enterprise. The purpose of the Quality Assurance Program (QAP) is to internally evaluate efficiency and effectiveness and continually improve. Financial managers do this through compliance based reviews to see if standards are meet, find out who's doing it best, and mirror those best processes across the FM team. The QAP also provides the FM with reasonable assurance that internal controls are present to ensure taxpayers resources are maximized and Airmen receive financial support. The QAP supports other programs such as audit, Inspector General (IG), Manager's Internal Control Program (MICP), Manager's Internal Control Toolset (MICT), etc. As the Air Force works to consolidate these programs, QA managers at every level should identify and take actions to cross-reference, not recreate, duplicate requirements and reduce redundant administrative processes.

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AFI65-202 19 MARCH 2020

Chapter 2

ROLES AND RESPONSIBILITIES

2.1. Deputy Assistant Secretary for Financial Operations (SAF/FMF). SAF/FMF through the Air Force Accounting and Finance Office (AFAFO) Quality Assurance Manager (QA Manager) provides Air Force FM Quality Assurance (QA) policy and procedural guidance, reference Headquarters Air Force (HAF) Mission Directive (MD) 1-12, A2.4.4.21. The AFAFO QA Manager interfaces directly with the Major Command/Air Force Installation and Management Support Center/Direct Reporting Unit/Field Operating Agency (MAJCOM/AFIMSC/DRU/FOA) QA Managers on QA guidance interpretations, self-assessment program, taskings, cross-feeds, bulletins, best practices, process improvements, and training. To facilitate awareness and understanding between inspections, audits and internal controls, the AFAFO QA Manager also represents SAF/FMF as the FM Functional Area Manager (FAM) for the SAF/IG (Air Force Inspector General) Management Internal Control Toolset (MICT); and the Assessable Unit Administrator (AUA), Audit, Inspector General (IG), and Fraud, Waste, and Abuse (FWA) focal point to the AFAFO.

2.2. MAJCOM/AFIMSC/DRU/FOA Financial Managers. MAJCOM/AFIMSC/DRU/FOA FMs through the MAJCOM/AFIMSC/DRU/FOA QAMs, support the SAF/FMF QAP and provide MAJCOM/AFIMSC/DRU/FOA - unique QA policy and procedural guidance, reference HAF MD 1-12, A2.4.4.21. The MAJCOM/AFIMSC/DRU/FOA QAMs interface directly with the baselevel QAMs on QA guidance interpretations, self-assessment program, taskings, cross-feeds, bulletins, best practices, process improvements, training, and, if applicable, staff assistance visits (SAVs). To facilitate awareness and efficiencies between inspections, audits and internal controls, the MAJCOM/AFIMSC/DRU/FOA QAMs shall also serve as or be key advisors to the MAJCOM/AFIMSC/DRU/FOA Functional Area Managers (FAM), AUA, Audit, Inspector General (IG), and FWA focal points (T-2).

2.3. Base-Level comptroller and Staff. The comptroller is responsible for the overall management and control of the QAP, and must designate a highly competent person as the Quality Assurance Manager (QA Manager), reference Air Force Instruction (AFI) 38-101, Air Force Organization, 3.5.4, Fig 3.5, 31 January 2017 (T-2). The comptroller is the direct supervisor of the QA Manager (T-1). The comptroller must provide the QA Manager with the resources (i.e. tools, training, time, and support) necessary to permit the QA Manager to be the comptroller's independent advisor (T-1). The FM staff (Financial Services Officer, Chief of Financial Analysis, Superintendent, and supervisors) complies with the spirit and intent of the QAP and motivates interest in the program among subordinates. The FM staff uses the QA Manager to perform independent reviews and analysis of operations. They also provide quality data for performance indicators, and if deficiencies are identified, advise the FM and QA Manager of the reasons for the discrepancies and the corrective actions taken to preclude recurrence.

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