text: Chapter 7
  Commercial Payments Findings. The Army did not maintain adequate internal controls over
  commercial payments to ensure that they were properly supported. DODIG estimates that the
  Army made $1.4B in commercial payments that lacked the minimum supporting documentation
  and information for a valid payment, such as certified vouchers, proper receiving reports, and
  invoices.
  Payments to Foreign Governments Findings. DOD did not maintain a complete audit trail to
  facilitate transparency regarding $1.8 billion of seized and vested assets payments made to Iraqi
  representatives to ensure that the funds were accounted for, audited, and used to assist the Iraqi
  people. In addition, the DOD did not maintain a complete audit trail over $134.8 million in
  Commander’s Emergency Response Program (CERP) payments made to representatives of
  foreign governments and therefore unable to provide reasonable assurance that the seized and
  vested assets funds disbursed were fully used to assist the Iraqi people.
  AUTHORITY
  7-15. The Federal Managers’ Financial Integrity Act (FMFIA) of 1982 (commonly referred to as the
  Integrity Act) requires the head of each executive agency to:
  * Establish internal controls to provide reasonable assurance that obligations and cost are in
  compliance with applicable laws.
  * Ensure funds, property, and other assets are safeguarded against waste, loss, unauthorized use or
  misappropriation.
  * Ensure revenues and expenditures are properly accounted for and recorded.
  * Ensure programs are effectively and efficiently carried out according to applicable law and
  management policy.
  * Report annually to the President and Congress on whether these internal controls comply with
  requirements of the Integrity Act.
  7-16. Army Regulation 11-2, Managers’ Internal Control Program, prescribes policies and responsibilities
  for the Army’s Managers’ Internal Control Program. This regulation applies to all Army organizations and
  programs; reinforces the accountability of Army commanders and managers for establishing and
  maintaining effective internal controls; and provides greater flexibility in their evaluations of internal
  controls.
  “No Army activity or program is exempt from the requirements of the Integrity Act. This
  includes all personnel assigned to Army organizations and reporting organizations for which the
  Army is executive agent.” – AR 11-2
  RESPONSIBILITIES
  7-17. The Deputy Assistant Secretary of the Army (Financial Operations) (DASA-(FO)) is designated the
  executive agent for internal controls and is the office the Army uses to manage the Managers’ Internal
  Control Program (MICP) to meet the requirements of the FMFIA which includes the financial reporting
  requirements.
  7-18. The DASA-(FO) will publish annual guidance that includes OMB focus areas for the year;
  instructions for preparation of individual statements of assurance; information to support assessments; how
  well the organization complied with applicable laws and regulations for internal controls and financial
  reporting; reporting new material weaknesses; and update the status of prior-year weaknesses.
  7-19. The senior responsible official of the reporting organization has overall responsibility for ensuring
  the implementation of an effective management control process with that organization and to:
  * Provide leadership and support needed to ensure that internal controls are in place and operating
  effectively.