Inspector General
Equal Employment Opportunity Commission
We audited the Consolidated Balance Sheets of the Equal Employment Opportunity Commission (EEOC) as of September 30, 2006, and 2005; related Consolidated Statements of Net Cost, Changes in Net Position, and Financing; and the Combined Statements of Budgetary Resources for the years then ended. We have issued our report thereon dated November 2, 2006. We conducted our audits in accordance with generally accepted auditing standards; standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 06-03, Audit Requirements for Federal Financial Statements.
In planning and performing our audits, we considered EEOCs internal control over financial reporting by obtaining an understanding of the agencys internal control, determining if internal control had been placed in operation, assessing control risk, and performing tests of controls to determine auditing procedures for the purpose of expressing our opinion on the financial statements. We limited internal control testing to those controls necessary to achieve objectives described in OMB Bulletin 06-03. We did not test all internal controls relevant to operating objectives as broadly defined by the Federal Managers Financial Integrity Act of 1982, such as those controls relevant to ensuring efficient operations. The objective of our audits was not to provide assurance on internal control. Consequently, we do not provide an opinion on internal control.
Our consideration of internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be reportable conditions. Under standards issued by the American Institute of Certified Public Accountants, reportable conditions are matters coming to our attention relating to significant deficiencies in the design or operation of internal control that, in our judgment, could adversely affect an agencys ability to record, process, summarize, and report financial data consistent with management assertions in the financial statements. Material weaknesses are reportable conditions in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statement being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Because of inherent limitations in internal control, misstatements, losses, or noncompliance may nevertheless occur and may not be detected. We noted no matters involving the internal control and its operation that we considered to be reportable conditions as defined above.
With respect to internal control related to significant performance measures included in Managements Discussion and Analysis, we obtained an understanding of the design of internal control relating to existence and completeness assertions, as required by OMB Bulletin 06-03. Our procedures were not designed to provide assurance on internal control over reported performance measures, and, accordingly, we do not express an opinion on such controls.
We noted other nonreportable matters involving internal control and its operation that we will communicate in a separate management letter.
This report is intended solely for the information and use of EEOC management, OMB, and Congress. It is not intended to be and should not be used by anyone other than these specified parties.
COTTON & COMPANY LLP
Colette Y. Wilson, CPA
Partner
November 2, 2006
Alexandria, Virginia
This page was last modified on December 7, 2006
