Missile Defense Agency

1
Missile Defense Agency Internal Control Program
Improvements
DISTRIBUTION STATEMENT A. Approved for public
release Distribution is unlimited.
6 DEC 06
Mr. Albert D. Hemphill II Assistant Deputy For
Agency Operations Missile Defense Agency
Approved for Public Release 06-MDA-2036 (17 NOV
06)
ms-108919 / 111706
2
Purpose / Agenda

• Purpose Discuss how the Missile Defense Agency
  (MDA) strengthened its Internal Control Program
• Resulted in an improved USD(C) Scorecard Ranking
  from 15th to 3rd out of 32 DoD components
• Agenda
• Background on MDA and Missile Defense Program
• MDAs Internal Control Program Improvements
• Actions taken to strengthen program
• Planned improvements in FY 2007
• Questions

3
Ballistic Missile Threat Environment

• North Korea
• 500 Scuds (300-500 km)
• No Dong (1,300 km) Reaches Japan and all South
  Korea
• Developing an intermediate-range ballistic
  missile, approximately 3,200 km range
• On 4-5 JUL 06, North Korea successfully launched
  six short-range ballistic missiles into the Sea
  of Japan
• Taepo Dong-2 SLV/ICBM
• 2-stage 10,000 km
• 3-stage 15,000 km
• 4 JUL 06 test failed shortly after launch

• Iran
• Largest missile inventory in the Middle East
• Medium-Range Ballistic Missiles
• Shahab-3 (1,300 km) based on North Korean No Dong
• Extended-range Shahab-3 (1,900 km)
• A new MRBM is now believed to be a
  solid-propellant system with 1,900 km range
• Long-Range Ballistic Missiles
• New IRBM or SLV in development
• Likely to develop ICBM/SLV could have an ICBM
  capable of reaching the U.S. before 2015

4
Ballistic Missile Defense Policy And Mission
Policy
The United States plans to begin deployment of
a set of missile defense capabilities in 2004.
These capabilities will serve as a starting point
for fielding improved and expanded missile
defense capabilities later.
White House Fact SheetNational Policy on
Ballistic Missile Defense, 20 MAY 03
Direction

• Establish a single program to develop an
  integrated system under a newly titled Missile
  Defense Agency
• Apply a capability-based requirements process for
  missile defense

SecDef Memorandum Missile Defense Program
Direction, 2 JAN 02
Mission

• Develop an integrated layered Ballistic Missile
  Defense System
• To defend the United States, its deployed forces,
  allies and friends
• From ballistic missiles of all ranges
• Capable of engaging them in all phases of flight

5
Integrated Ballistic Missile Defense System
Sensors
Forward-Based Radar With Adjunct Sensor
Midcourse X-Band Radar
Early Warning Radar
Space Tracking And Surveillance System
Defense Support Program
Sea-Based Radars
Terminal Defense Segment
Boost Defense Segment
Midcourse Defense Segment
Airborne Laser
Kinetic Energy Interceptor
Aegis Ballistic Missile Defense / Standard
Missile-3
Terminal High Altitude Area Defense
Patriot Advanced Capability-3
Ground-Based Midcourse Defense
Multiple Kill Vehicle
Command, Control, Battle Management
Communications
USSTRATCOM
USPACOM
USNORTHCOM
NMCC
EUCOM
CENTCOM
6
Missile Defense Agency(Post BRAC)
Alaska (46)
Hanscom AFB, MA (524)
Kwajalein (10)
53
Hawaii (31)
HQ MDA, VA (250-290)
386
Colorado Springs, CO (639)
193
Japan (113)
Vandenberg AFB, CA (37)
Dahlgren, VA (547)
2258
Edwards AFB, CA (12)
Kirtland AFB, NM (653)
Los Angeles AFB, CA (391)
Huntsville, AL (4880)
The Netherlands (3)
Other CONUS (166)
United Kingdom (4)
Other OCONUS (3)
Large, Geographically Diverse Agency 8,300
personnel
7
MDAs Internal Control Program
Mission
A successful Internal Control Program provides
the Director reasonable assurance that a strong
foundation of internal controls is in place to
ensure resources and efforts are being
effectively used in pursuit of MDAs Mission
Vision
Guiding Principles
Strategic Goals
Internal Control Program
8
Decision To Strengthen MDAsInternal Control
Program

• Senior MDA leadership considers strong internal
  controls a foundation for all agency activities
• MDAs FY 2005 scorecard ranking of 15th indicated
  the Internal Control Program needed
  strengthening
• Focus areas on strengthening the program
• Reemphasize senior leadership support for strong
  internal controls
• Strengthen the Internal Control Program structure
  and ensure consistency of guidance for internal
  control methods
• Ensure an open communication environment for
  identifying management challenges and problems
• Ensure involvement of senior leaders, mid-level
  managers, and assessable unit managers
  (transaction owners)

9
Specific Actions Taken

• Reemphasized the importance of the internal
  control program via Director memorandum (October
  2005)
• Emphasized responsibility for proper stewardship
  of resources
• Instituted mandatory training
• One hour executive training provided to senior
  leadership
• Three hour intermediate training provided to
  mid-level managers and assessable unit managers
• Conducted one-on-one internal control and risk
  assessment workshops on an as requested basis
• Leveraged the existing Executive Management
  Council as the Senior Assessment Team to involve
  key senior leaders

10
Specific Actions Taken (Contd)

• Expanded the Internal Control Program structure
• Appointed Internal Control Coordinators and
  identified Assessable Unit Managers
• Instituted requirements for each assessable unit
• Control risk, self-assessments
• Statement of Assurances
• Established an Internal Control Facilitation Team
  within MDAs Internal Review Directorate
• Provided oversight of the Internal Control
  Program by maintaining a Plan of Action and
  milestones for meeting internal and OSD
  milestones
• Revised guidance to ensure consistency of
  internal control methods throughout the agency
• Developed a self-assessment instruction guide
• Developed a risk, self-assessment checklist

11
Specific Actions Taken (Contd)

• Reviewed FY 2005 self-assessments and statement
  of assurances and provided recommended
  improvements for FY 2006 to assessable unit
  managers
• Consulted managers on preparation of respective
  statement of assurances
• Developed administrative processes for ensuring
  completion of major submissions and filing of
  documentation
• Developed a scorecard for MDA components based on
  the Office of the Under Secretary of Defense
  (Comptroller) scorecard

12
Expected Improvements In FY 2007

• Include Internal Control Program critical element
  in performance plans
• Develop Internal Control Program monitoring and
  testing guides
• Institutionalize quality assurance reviews of
  statement of assurances to support MDA Directors
  Statement of Assurance

13
Summary

• Senior MDA leadership considers strong internal
  controls a foundation for all agency activities
• Focused efforts to strengthened the MDA Internal
  Control Program are achieving results
• Plans in place to continue focus into the future

Questions?