US Space Command

DEPARTMENT OF DEFENSE USSPACECOM HOI 15-1
Headquarters United States Space Command
Peterson Air Force Base Colorado 80914-5003 19 June 1992

Internal Controls

INTERNAL MANAGEMENT CONTROL (IMC) PROGRAM

This headquarters operating instruction (HOI) states the policies for estab-
lishing, executing, and reporting on United States Space Command's (USSPACECOM)
Internal Management Control (IMC) program as required by DOD Directive 5010.38.
It applies to HQ USSPACECOM.

SUMMARY OF CHANGES
Changes office symbols of DCS/Comptroller to DCS/Financial Management and Comp-
troller (FM) (para 3.2). Changes Directorate of Cost to reflect merger of
Budget and Cost to Directorate of Financial Analysis (FMA) (para 3.3).

1. References:

1.1. Federal Managers' Financial Integrity Act of 1982 (Public Law 97-225).

1.2. Office of Management and Budget (OMB) Circular A-123 Revised, Internal
Management Control Program.

1.3. DOD Directive 5010.38, Internal Management Control Program. This direc-
tive includes standards for internal management control and tells how to apply
the definition of material weakness.

2. Purpose. The purpose of this program is to comply with the Federal
Managers' Financial Integrity Act of 1982 (Public Law 97-225). Specifically,
the Command:

2.1. Establishes a continuous process to evaluate and improve internal controls
and accounting systems.

2.2. Safeguards against waste, loss, unauthorized use, or misappropriation of
resources (funds, property, and other assets).

2.3. Submits the USCINCSPACE's annual statement of assurance to the Secretary
of Defense before 15 November each year.

Note: USSPACECOM component commands (Army, Navy, Air Force) respond to their
individual service command's internal control program. Also, resources used by
HQ USSPACECOM personnel which are managed by a component command, are evaluated
under that service command's internal control program.

Supersedes USSPACECOM HOI 15-1, 2 November 1987. (For summary of changes see
above.)
No. of Printed Pages: 3
OPR: FMAM (Richard C. Miles)
Approved by: Col Robert G. Jones
Editor: Pam Gatson
Distribution: F

2 USSPACECOM HOI 15-1 19 June 1992

3. Responsibilities:

3.1. USSPACECOM Chief of Staff (UD). Is designated as the senior management
office responsible to establish and implement the program.

3.2. Deputy Chief of Staff, Financial Management and Comptroller (FM):

3.2.1. Is the program office of primary responsibility (OPR) and focal point
for administering the program.

3.2.2. Issues detailed program execution instructions and definitions each year
to accommodate program changes received from DOD.

3.3. Director of Financial Analysis (FMA):

3.3.1. Monitors implementation of the program.

3.3.2. Establishes follow-up systems to ensure acceptable performance and
correction total material weaknesses.

3.3.3. Provides USCINCSPACE's statement of assurance to the Secretary of
Defense according to 31 U.S.C. 3512 (see paragraph la). Sends a copy of the
statement and accompanying reports to Assistant Secretary of Defense (Comp-
troller).

3.4. USSPACECOM J-Staff Directors. Evaluate, through their IMC program, OPRs
and focal points, internal controls to minimize the risk of waste, loss,
unauthorized use, or misappropriation of the resources) they manage. Ensure
timely correction of identified weaknesses.

3.4.1. Emphasize compliance, prevention, and correction of waste, fraud, and
mismanagement of resource within their directorate.

3.4.2. Implement an IMC program according to 3.2.2. above.

3.4.3. Appoint, in writing, a person to act as a functional manager for program
administration. Send a copy through Chief of Staff to Deputy Chief of Staff,
Financial Management and Comptroller.

3.4.4. Ensures accountability for the success or failure of directorate IMC
practices is reflected in performance evaluations of civilian and military
managers assigned IMC responsibilities.

3.5. IMC Program OPRs (Functional Managers):

3.5.1. Organize the IMC process.

3.5.2. Segment the directorate into assessable units (functional activities).

3.5.3. Conduct risk assessments on the assessable units.

3.5.4. Take applicable management actions, including the conducting of IMC or
alternative IMC reviews as necessary.

USSPACECOM HOI 15-1 19 June 1992 3

3.5.5. Schedule and take corrective action.

3.5.6. Provide for quality control.
3.5.7. Prepare reports, coordinate with and send to Director of Financial
Analysis (FMA).

OFFICIAL DONALD J. KUTYNA
General, USAF
Commander in Chief

MICHAEL A. KLICH
Lieutenant Colonel, USAF
Director of Information Management