Fiscal Year 2007 — Annual FMFIA Assurance Statement
I have directed an evaluation of the system of management controls of the U.S. Agency for International Development (USAID) in effect during the year ending September 30, 2007. I have taken the necessary measures to assure that the evaluation was conducted in a thorough and conscientious manner, taking into consideration the cost of implementing and maintaining appropriate controls in relation to the benefits derived from them.
USAID’s management is responsible for establishing and maintaining effective internal control and financial management systems that meet the objectives of the Federal Managers’ Financial Integrity Act (FMFIA). USAID is able to provide a qualified statement of assurance that the internal control and financial management systems meet the objectives of FMFIA, with the exception of one material weakness and no instances of non-conformance. Details of the exception are provided in Exhibit A.
USAID conducted its assessment of the effectiveness of internal control over the effectiveness and efficiency of operations and compliance with applicable laws and regulations in accordance with OMB Circular A-123, Management’s Responsibility for Internal Control. Based on the results of this evaluation, USAID maintains one material weakness in its internal control over the effectiveness and efficiency of operations and compliance with applicable laws and regulations as of September 30, 2007. Other than the exception noted in Exhibit A, the internal controls were operating effectively and no other material weaknesses were found in the design or operation of the internal controls.
In addition, USAID conducted a limited scope assessment of the effectiveness of internal control over financial reporting, which includes safeguarding of assets and compliance with applicable laws and regulations, in accordance with the requirements of Appendix A of OMB Circular A-123. USAID is reporting a scope limitation due to its three-year implementation of Appendix A. USAID identified 12 key business processes that are material to financial reporting and have tested eight of these key business processes through FY 2007. The remaining four key business processes will be assessed in FY 2008 as described in our OMB-approved implementation plan. Based on the results of the limited scope evaluation, USAID can provide reasonable assurance that its internal control over financial reporting as of June 30, 2007 was operating effectively and no material weaknesses were found in the design or operation of the internal control over financial reporting.
USAID also conducts its reviews of its financial management systems in accordance with OMB Circular A-127, Financial Management Systems. Based on the results of these reviews, USAID can provide reasonable assurance that its financial management systems are in compliance with the applicable provisions as of September 30, 2007.
Henrietta H. Fore
Administrator
U.S. Agency for International Development
November 15, 2007
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