Sworn in as the service’s 23rd commandant in May of 2006, Allen, a 1971 Coast Guard Academy graduate, grew up with a father who was in the Coast Guard. Now as head of the agency credited with one of the few success stories following Hurricane Katrina, in which 22,000 New Orleans residents were rescued from flooded homes by Coast Guard personnel, Allen said in his State of the Coast Guard address in February that the practices of the last century are not adequate for the next century.

Beginning his talk on Wednesday by saying he was nervous about addressing a group of accountants since he isn’t one himself, Allen joked that talking to the AGA audience was like speaking to a support group.

Over the next hour, however, Allen demonstrated that while he may not hold a degree in accounting, he more than speaks the language of internal control, activity-based costing and enterprise resource planning. "This is an organization you want your children to join," he said. "The Coast Guard is largely loved, admired and respected, but quite frankly, we’re an accountant’s worst nightmare." Allen said the service has counted on its operational genius and its commitment to duty for years but they’ve discovered those things "don’t count as internal controls."

While he acknowledges the need for centralized systems and practices, he continues to support the idea of decentralized leaders in the field with the resources and empowerment needed to get their jobs done without having to "call home and ask for permission." The Coast Guard, he said, needs to establish financial controls without losing the nimble on-scene response capability that was a hallmark of its success in the wake of Hurricane Katrina.

By the same token, Allen believes the people on the front lines have to be cognizant of the need for financial controls and accountability. He said he tells people within the service that the Coast Guard does only two things—execute the mission or support the mission. In light of that, he is in the process of establishing two deputy commandant positions to oversee both sides.