Management Controls Over the Re-baselined
New Financial Environment Project
February 1, 2005
Audit Report 05-007
To: Russell A. Rau,
Assistant Inspector General for Audits
From: Fred S. Selby
Director, Division of Finance
Subject: Draft Report Entitled Management Controls Over the Re-baselined New Financial Environment Project
(Assignment Number 2004-048)
We have completed our review of the subject Office of Inspector General (OIG) draft report. DOF appreciates the ongoing review work performed by the OIG and its recommendations to improve NFE project controls. We concur with your recommendation to expand NFE project planning to address post-installation tasks and related controls. NFE implementation planning already includes some of the expected post-installation activities such as data conversion integrity, defect resolution processes, and system (and related data) retirement. In addition, the operational areas across the Corporation are logically assigned responsibility and accountability for assuring the continuity and integrity of their business processes. That said, we do agree that a more expanded, unified planning effort will support a more controlled transition and provide a higher level of assurance of continuity of critical business functions.
MANAGEMENT DECISION
OIG Recommendation(s): Develop a plan or modify existing plans for the NFE system
implementation to address post-installation tasks and related controls, including policies, procedures, and assignment of responsibility and accountability.
Management Response: We concur with OIG's recommendation to expand NFE project planning to further address post-installation tasks and related controls. Target completion date for a more unified post-installation plan: March 31, 2005.
If you have any questions regarding our response, please contact Karen Hughes at (202) 416-7201.
cc: Karen Hughes
Mark Brenneman
James Anderson
Williams Ortiz
Stan Pawlowski
