Report of Independent Auditor - Cover Letter

FY 2007 Financial Report
Bureau of Resource Management
November 2007
Report

Image of United States Department of State logo on letterhead

United States Department of State
and the Broadcasting Board of Governers

Inspector General

November 15, 2007

UNCLASSIFIED
INFORMATION MEMO TO THE SECRETARY
FROM: OIG/AUD - Mark W. Duda Signature of Mark W. Duda, Inspector General
SUBJECT: Independent Auditor's Report on the U.S. Department of State's 2007 and 2006 Financial Statements (Report AUD/FM-08-05)

OIG contracted with the independent certified public accounting firm of Leonard G. Birnbaum and Company, LLP (LGB), to audit the financial statements of the Department of State as of September 30, 2007 and 2006, and for the years then ended. The contract required that the audit be performed in accordance with U.S. generally accepted government auditing standards; Office of Management and Budget (OMB) audit guidance; and the Financial Audit Manual, issued by the Government Accountability Office and the President's Council on Integrity and Efficiency.

Because the Department was unable to respond to requests for evidential material in a timely manner and LGB was not able to perform other auditing procedures to satisfy itself as to the accuracy of the 2007 financial statements in time to meet the November 15, 2007, deadline imposed by OMB for issuing the report, the scope of LGB's work was not sufficient to enable it to express, and it does not express, an opinion on the annual financial statements as of, and for the year ended, September 30, 2007.

LGB found:

  • certain deficiencies in the Department's internal control that LGB considered to be significant deficiencies and other deficiencies that LGB considered to be material weaknesses,

  • instances of noncompliance with selected provisions of applicable laws and regulations involving the Department's financial management system, and

  • that the Department's financial management systems did not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA).

LGB is responsible for the auditor's report dated November 14, 2007, attached to this memorandum and the conclusions expressed in the report. OIG does not express an opinion on the Department's financial statements or conclusions on internal control and compliance with laws and regulations, including whether the Department's financial management systems complied with FFMIA.

Comments from the Bureau of Resource Management are included in the attached report in Appendix A.

OIG appreciates the cooperation extended to it and LGB by Department managers and staff during the conduct of this audit.

Attachment: As stated.

UNCLASSIFIED

 

 


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