Army Programs Management Control

1 army Regulation 11 2 army ProgramsManagementControlHeadquartersDep artment of the ArmyWashington, DC1 August 1994 UnclassifiedReport Documentation PageReport Date 01 Aug 1994 Report Type N/ADates Covered ( to) - Title and Subtitle army Programs : Management ControlContract Number Grant Number Program Element Number Author(s) Project Number Task Number Work Unit Number Performing Organization Name(s) and Address(es) Department of the army Headquarters Washington, DC Performing Organization Report Number Sponsoring/Monitoring Agency Name(s) and Address(es) Sponsor/Monitor s Acronym(s) Sponsor/Monitor s Report Number(s) Distribution/Availability Statement Approved for public release, distribution unlimitedSupplementary Notes Abstract Subject Terms Report Classification unclassifiedClassification of this page unclassifiedClassification of Abstract unclassified Limitation of Abstract UUNumber of Pages 22 SUMMARY of CHANGEAR 11 2 Management ControlThis revision--o Changes the terminology from " internal Management Control Program" to" Management Control Process" to eliminate confusion over the meaning of" internal ", to place greater focus on Management s responsibility foreffective controls.

2 And to counter the perception of Management Control as aseparate Restructures the army Management Control process to provide greaterflexibility to commanders and managers and to increase their accountabilityfor the effectiveness of their Establishes a Senior Management Council to advise the Secretary of the army onmanagement Control issues (para 1-11).o Addresses the responsibilities of Management Control Administrators andInternal Review Officers (paras 1-16 and 1-17).o Redefines assessable units and establishes minimum rank/grade requirementsfor assessable unit managers (para 2-1).o Limits performance agreement requirements to commanders and managers atassessable unit manager level and above (paras 2-1 and 2-10).o Focuses required Management Control evaluations on key Management controlsidentified by HQDA functional proponents in governing regulations (paras 2-3and 2-4).

3 O Requires the publication of Management Control Evaluation Checklists ingoverning regulations and permits the use of existing Management reviewprocesses as an alternative method for conducting evaluations (para 2-4).o Redefines the Management Control Plan (para 2-5).o Clarifies guidance on reporting of material weaknesses and implements DODguidance on validating correction of material weaknesses prior to reportingthem as closed (para 2-6).o Clarifies guidance on required documentation (para 2-9).o Publishes the Management Control Evaluation Checklist for administration ofthe Management Control process in the new streamlined format (app C).HeadquartersDepartment of the ArmyWashington, DC1 August 1994 army ProgramsManagement Control * army Regulation 11 2 Effective 1 October 1994 History.

4 This UPDATE printing publishes ar e v i s i o n o f t h i s p u b l i c a t i o n . B e c a u s e t h epublication has been extensively revised, thechanged portions have not been This regulation implements pub-l i c l a w a n d O f f i c e o f M a n a g e m e n t a n dBudget (OMB) and Department of Defense(DOD) guidance by prescribing policies andguidance for the army Management controlprocess. It has been revised to simplify andreduce administrative requirements, to pro-v i d e g r e a t e r f l e x i b i l i t y i n i m p l e m e n t a t i o n ,and to increase the involvement and account-ability of commanders and managers. Thisregulation does not contain instructions forthe evaluation of army accounting h e s e i n s t r u c t i o n s a r e p r o v i d e d i n D O D7 0 0 0.

5 1 4 R , V o l u m e 1 , G e n e r a l F i n a n c i a lManagement Information, Systems and p p l i c a b i l i t y . T h i s r e g u l a t i o n a p p l i e s t ocommanders and managers at all levels of theActive army (including Civil Works respon-s i b i l i t i e s o f t h e C o r p s o f E n g i n e e r s ) , t h eArmy National Guard, and the United StatesArmy Reserve. It remains in effect during alllevels of mobilization. Combatant commandsand joint activities for which the army isexecutive agent are supported by the Armymanagement Control r o p o n e n t a n d e x c e p t i o n a u t h o r i t y .The proponent of this regulation is the As-s i s t a n t S e c r e t a r y o f t h e A r m y ( F i n a n c i a lM a n a g e m e n t ) ( A S A ( F M ) ).

6 T h e A S A ( F M )has the authority to approve exceptions tothis regulation that are consistent with con-trolling law and regulation. The ASA(FM)may delegate this approval authority, in writ-ing, to a division chief under their supervi-sion within the proponent agency who holdsthe grade of colonel or the civilian r m y m a n a g e m e n t c o n t r o l p r o c e s s .This regulation contains Management controlprovisions and provides a Management Con-trol Evaluation Checklist for use in evaluat-ing Management Supplementation of thisregulation is permitted at the Major Com-mand (MACOM) level to accommodate localc i r c u m s t a n c e s.

7 S u p p l e m e n t a t i o n b e l o wM A C O M l e v e l i s p r o h i b i t e d w i t h o u t p r i o ra p p r o v a l f r o m t h e p r o p o n e n t ( A T T NSAFM FOM, Assistant Secretary army Fi-n a n c i a l M a n a g e m e n t , 1 0 9 A r m y P e n t a g o n ,Washington, DC 20310 0109).Interim changes. Interim changes to thisregulation are not official unless they are au-thenticated by the Administrative Assistant tothe Secretary of the army . Users will destroyinterim changes on their expiration dates un-less sooner superseded or Improvements. Users of thisregulation are invited to send comments andsuggested improvements on DA Form 2028(Recommended Changes to Publications andB l a n k F o r m s ) d i r e c t l y t o.

8 A T T N S A F M -F O M , A s s i s t a n t S e c r e t a r y A r m y F i n a n c i a lManagement, 109 army Pentagon, Washing-ton, DC 20310 Distribution of this publica-tion is made in accordance with the require-ments on DA Form 12 09 E, block 2024,intended for command levels A, B, C, and Df o r t h e A c t i v e A r m y , t h e A r m y N a t i o n a lGuard, and the United States army (Listed by paragraph and page number)Chapter 1 Authority and Responsibilities, page 1 Section IGeneral, page 1 Purpose 1 1, page 1 References 1 2, page 1 Explanation of abbreviations and terms 1 3, page 1 Statutory authority 1 4, page 1 Section IIResponsibilities, page 1 Secretary of the army (SA) 1 5, page 1 Assistant Secretary of the army (Financial Management )(ASA(FM))

9 1 6, page 1 HQDA functional proponents 1 7, page 1 Administrative Assistant to the Secretary of the army 1 8,page 1 The Auditor General 1 9, page 2 The Inspector General 1 10, page 2 Senior Management council 1 11, page 2 Reporting organizations 1 12, page 2 Senior responsible officials 1 13, page 2 Assessable unit managers 1 14, page 2 Commanders of installations, table of organization and equipment(TOE) divisions, major subordinate commands and the numberedContinental United States Armies (CONUSA), and StateAdjutants General 1 15, page 2 Management Control administrators (MCA) 1 16, page 2 internal Review Officers 1 17, page 2 Director, Defense Finance and Accounting Service-IndianapolisCenter (DFAS-IN)

10 1 18, page 3* This regulation supersedes AR 11 2, 14 September 11 2 1 August 1994iUnclassifiedContents ContinuedChapter 2 Policy and Requirements, page 3 army Management Control policy 2 1, page 3 Reasonable assurance 2 2, page 3 Key Management controls 2 3, page 3 Management Control evaluations 2 4, page 4 Management Control plans 2 5, page 4 Identifying, reporting, correcting and tracking material weaknesses 2 6, page 4 Use of audit and inspection reports 2 7, page 5 army reporting requirements 2 8, page 5 Required documentation 2 9, page 5 Performance agreements 2 10, page , page General Standards for internal Controls in theFederal Government, page Control Evaluation Checklist, page 10 GlossaryIndexiiAR 11 2 1 August 1994 Chapter 1 Authority and ResponsibilitiesSection IGeneral1 1.