Army Programs Managers’ Internal Control Program

1 army Regulation 11 2 army ProgramsManagers InternalControlProgramHeadquartersDepart ment of the ArmyWashington, DC4 January 2010 UNCLASSIFIEDSUMMARY of CHANGEAR 11 2 Managers Internal Control ProgramThis major revision, dated 4 January 2010--o Changes the title of the publication from Management Control to Managers Internal Control Program (cover).o Adds policy on Internal Control over financial reporting (para 2-2).o Changes terminology from Management Control Evaluation Checklist to InternalControl Evaluation (para 2-5).o Realigns the standards for Internal Control (app B).o Adds Internal Control Reporting Categories for use in classifying andreporting material weaknesses (app C).

2 O Changes performance agreement requirements to include Internal controladministrators at the assessable unit level (reporting organizations) andabove (throughout).o Changes terminology from Management Control Plan to Internal ControlEvaluation Plan (throughout).o Changes the terminology from management Control administrator to internalcontrol administrator (throughout).o Makes administrative changes (throughout).HeadquartersDepartment of the ArmyWashington, DC4 January 2010 army ProgramsManagers Internal Control Program * army Regulation 11 2 Effective 4 February 2010H i s t o r y . T h i s p u b l i c a t i o n i s a m a j o u m m a r y.

3 T h i s r e g u l a t i o n i m p l e m e n t sP u b l i c L a w 9 7 2 5 5 ; T i t l e 3 1 , U n i t e dS t a t e s C o d e , S e c t i o n 3 5 1 2 ; O f f i c e o fManagement and Budget Circular A 123,Management s Responsibility for InternalControls; and DODI This regula-tion is revised to increase the involvementa n d a c c o u n t a b i l i t y o f c o m m a n d e r s a n dmanagers. It does not contain instructionsf o r t h e e v a l u a t i o n o f A r m y a c c o u n t i n gsystems. Those instructions are providedin DOD R, Volume This regulation applies tot 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/ army National Guard of the UnitedStates, and the army Reserve, unlessotherwise stated.

4 This regulation remainsin effect during all levels of commands and Joint activitiesfor which the army is Executive Agentare supported by the army Managers In-ternal Control and exception proponent of this regulation is theAssistant Secretary of the army for Fi-n a n c i a l M a n a g e m e n t a n d C o m p t r o l l e r .The proponent has the authority to ap-prove exceptions or waivers to this regu-lation that are consistent with controllinglaw and regulations . The proponent maydelegate this approval authority, in writ-ing, to a division chief within the propo-nent agency or its direct reporting unit orfield operating agency, in the grade ofcolonel or the civilian equivalent.

5 Activi-ties may request a waiver to this regula-t i o n b y p r o v i d i n g j u s t i f i c a t i o n t h a tincludes a full analysis of the expectedbenefits and must include formal reviewby the activity s senior legal officer. Allwaiver requests will be endorsed by thecommander or senior leader of the requ-e s t i n g a c t i v i t y a n d f o r w a r d e d t h r o u g ht h e i r h i g h e r h e a d q u a r t e r s t o t h e p o l i c yproponent. Refer to AR 25 30 for management Control regulation contains Internal controlsand provides an Internal Control Evalua-t i o n f o r u s e i n e v a l u a t i n g k e y i n t e r n a lcontrols (appendix B).

6 S u p p l e m e n t a t i o n . S u p p l e m e n t a t i o n o fthis regulation and establishment of com-mand and local forms are prohibited with-o u t p r i o r a p p r o v a l f r o m t h e A s s i s t a n tSecretary of the army for Financial Man-agement and Comptroller (SAFM FOM),1 0 9 A r m y P e n t a g o n , W a s h i n g t o n , D C20310 improvements. Users areinvited to send comments and suggestedimprovements on DA Form 2028 (Recom-m e n d e d C h a n g e s t o P u b l i c a t i o n s a n dBlank Forms) directly to Assistant Secre-tary of the army for Financial Manage-m e n t a n d C o m p t r o l l e r ( S A F M F O M ) ,1 0 9 A r m y P e n t a g o n , W a s h i n g t o n , D C20310 o m m i t t e e C o n t i n u a n c e A p p r o v a l.

7 The Department of the army committeemanagement official concurs in the estab-lishment and/or continuance of the com-m i t t e e ( s ) o u t l i n e d h e r e i n . A R 1 5 1requires the proponent to justify establish-i n g / c o n t i n u i n g c o m m i t t e e ( s ) , c o o r d i n a t edraft publications, and coordinate changesin committee status with the ArmyResources and Programs Agency, Depart-ment of the army Committee Manage-ment Office (AARP ZA), 2511 JeffersonDavis Highway, 13th Floor, Taylor Build-ing, Arlington, VA 22202 3926. Further,i f i t i s d e t e r m i n e d t h a t a n e s t a b l i s h e d group identified within this regulation,later takes on the characteristics of a com-mittee, as found in the AR 15 1, then theproponent will follow all AR 15 1 re-quirements for establishing and continuingthe group as a This regulation is availablein electronic media only and is intendedfor command levels A, B, C, D, and E fort 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/ army National Guard of the UnitedStates, and the army Reserve.

8 *This regulation superseded AR 11 2, dated 1 August 11 2 4 January 2010iUNCLASSIFIEDC ontents (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 1 5, page 1 Assistant Secretary of the army for Financial Management and Comptroller 1 6, page 1 Headquarters, Department of the army functional proponents 1 7, page 2 Administrative Assistant to the Secretary of the army 1 8, page 3 Auditor General 1 9, page 3 Inspector General 1 10.

9 Page 3 Senior Management Council 1 11, page 3 Reporting Organizations 1 12, page 3 Senior Responsible Officials 1 13, page 4 Assessable Unit Managers 1 14, page 4 Commanders of installations, major subordinate commands, table of organization and equipment divisions, and StateAdjutants General 1 15, page 5 Internal Control Administrator 1 16, page 5 Internal Review Directors/Chiefs 1 17, page 5 Director, Defense Finance and Accounting Service-Indianapolis Center 1 18, page 5 Chapter 2 Policy and Requirements, page 6 army Managers Internal Control Program policy 2 1, page 6 Internal Control over financial reporting 2 2, page 6 Reasonable assurance 2 3, page 7 Key Internal controls 2 4, page 7 Internal Control evaluations 2 5, page 8 Internal Control evaluation plans 2 6, page 8 Identifying, reporting, correcting, and tracking material weaknesses 2 7, page 9 Use of Internal review, audit, and inspection reports 2 8, page 10 army reporting requirements 2 9, page 10 Required documentation 2 10, page 10 Performance agreements 2 11, page , page Accountability Office Standards for Internal Control in the Federal Government.

10 Page Control Reporting Categories, page Control Evaluation, page 20iiAR 11 2 4 January 2010 Contents ContinuedFigure ListFigure 2 1: Format of an appendix for an Internal Control Evaluation, page 12 Figure 2 2: Format of an appendix for an Internal Control evaluation process not involving the use of evaluations,page 13 GlossaryiiiAR 11 2 4 January 2010 Chapter 1 Authority and ResponsibilitiesSection IGeneral1 1. PurposeThis regulation prescribes policies and responsibilities for the army s Managers Internal Control Program (MICP rogram). The provisions of this regulation apply to all army organizations and 2.