Three members of the FLC Sigonella Inventory Accuracy (IA) team, Regional Inventory Accuracy Officer (RIAO) Angela Palumbo, James Wagner, and Francesco Garozzo, performed an Existence and Completeness (E&C) Test June 4-7, 2024.
An E&C test is a 100% full inventory of all NWCF assets currently located at the plant to be repaired. They checked the physical condition codes of such assets and their matching reported condition code in Enterprise Resource Planning.
The contract the Navy has with these commercial plants in Europe has a Commercial Asset Visibility (CAV) Statement of Work (SOW). The commercial plant must be in compliance with the CAV SOW; therefore, during the audit, they also verify compliance with all regulations of the CAV SOW. A large amount of key supporting documentation is collected and reviewed by the IA team during an E&C.
Audit results are documented in a report called Asset Tracker, which must be completed by the last day of the audit and sent to "NAVSUP 0183 Audit and Testing."
In 2018, NAVSUP IOC (Inventory Operation Center) was established with the scope of improving NWCF material accountability and Financial Improvement Audit Readiness (FIAR) compliance. In 2019, IOC decided to expand the audit area of responsibilities (AOR) to Commercial Plants holding NWCF assets while in repair. NAVSUP FLC Sigonella AOR increased from three organic plants to an additional 33 commercial plants. In 2020, the IOC became a Task Force and reached out to Independent Public Auditors such as Earnest and Young (E&Y), Deloitte, and KPMG to receive a broader view of "external audit" and to be able to establish a solid and robust audit program capable to improve accountability and FIAR compliance.
Since then, E&Y has conducted hundreds of external audits of NAVSUP's plants.
KPMG and Deloitte helped task force in the development of Internal Control Aid, Line of Effort, Manager Review Control program and RIAO Qualification and provided remediation training to plants. In April 2021, NAVSUP's Audit Campaign Plan put a temporary stop to commercial plant's audit, establishing a four-year plan divided into four phases:
Phase I: Audit of NAVSUP Organic Plants - April 2021- March 2022
Phase II: Audit of Navy Non-NAVSUP Plants - March 2022 - Jan 2023
Phase III: Audit of Non-Navy Plants - Oct 2022 - Sept 2023 (FY23)
Phase IV: Commercial Plants - FY24-FY25
By then, FLC Sigonella RIAO's team had already audited 10 Commercial Plants in the AOR. From May 2021, FLC Sigonella RIAO and team have performed more than 40 tests on the three organic plants in the AOR: CQ18 ASD Sigonella, CP48, and CNDA FLCSI Rota. In 2022, the six RIAOs were qualified, and in 2023, the NAVSUP Task Force was disestablished and became part of NAVSUP HQ, code 018.
FLC Sigonella RIAO was tasked to audit one commercial plant, Hamilton Soundstrand in Maastricht Netherlands, after a stoppage of three years. The FLC Sigonella RIAO team was very excited to be able to perform this audit and eager to receive more tasks to audit commercial plants in the future.
