Evaluation of the Department of the Navy's (DoN's) Managers Internal Control (MIC) manual

Abstract

The purpose of this MBA project was to conduct a comprehensive review of the current DoN Manager's Internal Control (MIC) Manual to evaluate its effectiveness in helping to align the Navy's current mission, organizational philosophy, management strategy, goals, metrics, sustainment efforts, and improvement programs. Additionally, this study reviews the (MIC) manual to evaluate its ease of use or identify potential challenges in applying the concepts as outlined in the aforementioned manual. The primary framework used in evaluating the MIC manual was a report published by Government Accountability Office (GAO) titled: Internal Control Management and Evaluation Tool (2001) which is based upon the five standards for internal control in the federal government. Although the MIC manual provides an interpretation of the guidance and requirements set forth by SECNAVINST 5200.35E, the manual falls short in transcending or translating the spirit and intent of SECNAVINST 5200.35E and other statutory and regulatory references. The MIC manual's ease of use is hindered due to the strict focus on providing instructional guidance in adhering directly to the requirements of SECNAVINST 5200.35E alone. Additionally, it is challenging for the reader to grasp the purpose and vision of the program given that the overarching organizational goals and objectives are not clearly stated within the manual. Structuring the MIC manual to reflect GAO's five standards of internal control will increase its effectiveness in aligning an organizations' current mission, organizational philosophy, management strategy, goals, metrics, sustainment efforts, and improvement programs.