Appendix E: Summary of Financial Statement Audit
and Management Assurances
Presented below is a summary of financial statement audit and management assurances for FY 2007. Table 1 relates to the Department’s FY 2007 financial statement audit, which resulted in an unqualified opinion with no material weaknesses. Table 2 presents the number of material weaknesses reported by the Department under Section 2 of the Federal Managers’ Financial Integrity Act (FMFIA) —either with regard to internal controls over operations or financial reporting—and Section 4, which relates to internal controls over financial management systems; as well as the Department’s compliance with the Federal Financial Management Improvement Act (FFMIA).
The Department had one recurring material weakness under FMFIA, Section 2 relating to information technology (IT) certification and accreditation (C&A). Though significant progress has been made, work still remains on fully implementing corrective actions. Efforts to fully resolve this material weakness are being monitored by the Department’s senior management
Table 1. Summary of Financial Statement Audit
Summary of Financial Statement Audit
| Audit Opinion: |
Unqualified |
| Restatement: |
No |
| Material Weaknesses |
Beginning Balance |
New |
Resolved |
Consolidated |
Ending Balance |
| No Material Weaknesses |
0 |
0 |
0 |
0 |
0 |
| Total Material Weaknesses |
0 |
0 |
0 |
0 |
0 |
Table 2. Summary of Management Assurances
Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)
| Statement of Assurance: |
Unqualified |
| Material Weaknesses |
Beginning
Balance |
New |
Resolved |
Consolidated |
Reassessed |
Ending
Balance |
| No Material Weaknesses |
0 |
0 |
0 |
0 |
0 |
0 |
| Total Material Weaknesses |
0 |
0 |
0 |
0 |
0 |
0 |
Effectiveness of Internal Control over Operations (FMFIA § 2)
| Statement of Assurance: |
Qualified |
| Material Weaknesses |
Beginning
Balance |
New |
Resolved |
Consolidated |
Reassessed |
Ending
Balance |
| IT Certification and Accreditation |
1 |
0 |
0 |
0 |
0 |
1 |
| Total Material Weaknesses |
1 |
0 |
0 |
0 |
0 |
1 |
Conformance with Financial Management System Requirements (FMFIA § 4)
| Statement of Assurance: |
Systems conform to financial management system requirements |
| Non-Conformances |
Beginning
Balance |
New |
Resolved |
Consolidated |
Reassessed |
Ending
Balance |
| No Non-Conformance Issues |
0 |
0 |
0 |
0 |
0 |
0 |
| Total Material Weaknesses |
0 |
0 |
0 |
0 |
0 |
0 |
Compliance with Federal Financial Management Improvement Act (FFMIA)
| |
Agency |
Auditor |
| Overall Substantial Compliance |
Yes |
Yes |
| 1. System Requirements |
Yes |
Yes |
| 2. Accounting Standards |
Yes |
Yes |
| 3. USSGL at Transaction Level |
Yes |
Yes |
|
