Summary of Financial Statement Audit and Management Assurances

Table 1. Summary of Financial Statement Audit

Audit Opinion:	Unqualified
Restatement:	No

Material Weaknesses	Beginning Balance	New	Resolved	Consolidated	Ending Balance
Financial Management Systems & Reporting	X				X
Budgetary Accounting		X			X
Departmental Information Systems Controls	X				X
Medicare Claims Processing		X			X
Total Material Weaknesses	2	2	0	0	4

Definition of Terms

Beginning Balance: The beginning balance shall agree with the ending balance of material weaknesses from the prior year.

Resolved: The total number of material weaknesses that have dropped below the level of materiality in the current year.

Consolidated: The combining of two or more findings.

Reassessed: The removal of any finding not attributable to corrective actions (e.g., management has re-evaluated and determined a material weakness does not meet the criteria for materiality or is redefined as more correctly classified under another heading (e.g., Section 2 to a Section 4 and vice versa).

Ending: The agency’s year-end balance.

Table 2. Summary of Management Assurance

Effectiveness of Internal Control over Financial Reporting (FMFIA #2)

Statement of Assurance: Qualified

Material Weaknesses	Beginning Balance	New	Resolved	Consolidated	Reassessed	Ending Balance
Medicare Advantage & Prescription Drug Benefit Payments	X		X
Financial Systems & Processes	X					X
Total Material Weaknesses	2	0	1	0	0	1

Effectiveness of Internal Control over Operations (FMFIA #2)

Statement of Assurance: Qualified

Material Weaknesses	Beginning Balance	New	Resolved	Consolidated	Reassessed	Ending Balance
Medicare Electronic Data Processing Operations	X			X
Oversight and Management of Information System Controls		X				X
Total Material Weaknesses	1	1	0	1	0	1

Conformance with financial management system requirements (FMFIA #4)

Statement of Assurance: Nonconformance

Non-Conformances	Beginning Balance	New	Resolved	Consolidated	Reassessed	Ending Balance
Financial Systems & Processes	X					X
Medicare Electronic Data Processing Operations	X			X
Oversight and Management of Information System Controls		X				X
Total Non-Conformances	2	1	0	1	0	2

Compliance with Federal Financial Management Improvement Act (FFMIA)

Overall Substantial Compliance:

Agency: No
Auditor: No

1. System Requirements: No

2. Accounting Standards: Yes

3. USSGL at Transaction Level: No

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