Budget Highlights Book - DON FM&C Website - U.S. Navy

February 2010Improving PerformanceNavy Total Obligation Authority (TOA). Plans are being made to extend Navy ERPto the rest of the DON.Financial Improvement Program: DON continues to make significant progresswith its Financial Improvement Program (FIP). The goal of the FIP is to enhance theeffectiveness of Navy‐Marine Corps business processes and the systems supportingthe processes; establish a Department‐wide regime of key internal controls over theprocesses and systems; and to ensure that the controls are periodically tested anddeemed effective. The FIP process will lead to higher‐quality business data which isaccurate, reliable, accessible, and complete. The result will be a stable businessenvironment which can maintain the confidence of Congress and the taxpayer, andone which can ultimately achieve uniformly positive audit results. FIP primaryachievements include: 1) Leading the Department of Defense in readying businessareas for audit, in concert with the Financial Improvement and Audit Readiness(FIAR) efforts; the primary DON accomplishment is achieving audit readiness forthe Marine Corps’s Statement of Budgetary Resources (SBR), the first MilitaryService financial statement to achieve auditability; another significant area in whichDON has asserted audit readiness is Environmental Liabilities, encompassingalmost one‐half of DON’s total liabilities; 2) Refining the DON FIP methodology intoan understandable and accommodating process which can be readily implementedat major commands with proper leadership; the FIP is a key enabler to positivechange in the business culture Department‐wide. In addition, DON has set a goal toachieve audit readiness on the Departmental SBR by the end of 2012. DON’sprogram is recognized to be the leading financial improvement program among theMilitary Services.The DON FIP, in concert with the continuing roll‐out of Navy ERP and otherenterprise business initiatives, will transform the Department’s businessenvironment into a “best practices,” auditable end‐state. This transformedenvironment will be both transparent and accountable to DON’s stakeholders – theDepartment of Defense, Congress, and the American taxpayer.5FY 2011 Department of the Navy Budget 7‐5