U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
Washington, D.C. 20507
Office of the Chief Financial Officer
and Administrative Services
November 8, 2004
MEMORANDUM
| TO: | Aletha L. Brown Inspector General |
|
|---|---|---|
| FROM: | Jeffrey A. Smith Chief Financial Officer |
|
| SUBJECT: | Comments on Draft FY 2004 Financial Statement Audit
Reports (OIG Report No. 2004-05-FIN) |
|
We reviewed the draft audit report prepared by Cotton & Company LLP. We are pleased that the auditors have issued an unqualified opinion on the FY 2004 financial statements with a qualified opinion on the FY 2003 balance sheet. Also, we are pleased there were no findings related to compliance with laws and regulations.
The report has one material weakness in internal controls and recommends that we improve the effectiveness of the quality assurance system to verify the work of individuals preparing the financial statements and footnotes. We agree that the quality assurance system created as a result of the FY 2003 audit findings must be improved. Although we thought the improvements made during FY 2004 would solve the problems, a problem still exists for one of the financial statements. We will ensure this is fixed for the first quarter and subsequent FY 2005 financial statements.
We would like to thank Cotton & Company LLP for their observations to help us improve our preparation of financial statements. Should you have any questions regarding our comments on the draft audit report, please feel free to contact me on (202) 663-4201.
This page was last modified on November 18, 2004
