Audit of the International Boundary and Water Commission's 2004 and 2003 Financial Statements

Under OIG’s direction, an independent external auditor audited the International Boundary and Water Commission, United States and Mexico, U.S. Section’s (USIBWC) financial statements as of September 30, 2004 and 2003, in order to report on whether the financial statements fairly presented USIBWC’s financial position and results of financial operations in accordance with generally accepted accounting principles, to determine whether USIBWC had an internal control structure that provided reasonable assurance of achieving internal control objectives, and to determine whether USIBWC complied with applicable laws and regulations. USIBWC is charged by a series of treaties between the governments of the United States and Mexico with the application, regulation, and exercise of the provisions of such agreements for the solution of water and boundary problems along the U.S. and Mexico boundary.

The independent external auditor issued an unqualified opinion on USIBWC financial statements as of September 30, 2004, and did not identify any material weaknesses or material instances of noncompliance.