The U.S. Equal Employment Opportunity Commission
EEOC Performance and Accountability Report FY 2004

Washington, D.C. 20507

Office of
Inspector General

October 27, 2004


TO: Cari M. Dominguez
FROM: Aletha L. Brown
Inspector General
Signature of Aletha L. Brown
SUBJECT: Audit of the Equal Employment Opportunity Commission's Fiscal Year 2004 and 2003 Financial Statements (OIG Report No. 2004-05-FIN)

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Cotton and Company LLP to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal years 2004 and 2003. The contract required that the audit be done in accordance with U.S. generally accepted government auditing standards; Office of Management and Budget's Bulletin 01-02, Audit Requirements for the Federal Financial Statements, and the Government Accounting Office/President's Council on Integrity and Efficiency's Financial Audit Manual.

Cotton and Company LLP issued an unqualified opinion on EEOC's FY 2004 financial statements and a qualified except for opinion on the FY 2003 Balance Sheet. In its Report on Internal Control, Cotton and Company LLP identified one material weakness relating to quality assurance over the financial reporting process. Cotton and Company LLP also reported that EEOC's financial management systems substantially complied with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA), and found no reportable noncompliance with laws and regulations it tested.

In connection with the contract, OIG reviewed Cotton and Company LLP's report and related documentation and inquired of its representatives. Our review, as differentiated from an audit in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on EEOC's financial statements or conclusions about the effectiveness of internal controls or on whether EEOC's financial management systems substantially complied with FFMIA; or conclusions on compliance with laws and regulations. Cotton and Company LLP is responsible for the attached auditor's report dated November 1, 2004, and the conclusions expressed in the report. However, OIG's review disclosed no instances where Cotton and Company LLP did not comply, in all material respects, with generally accepted government auditing standards.

EEOC management was given the opportunity to review the draft report and to provide comments. Management concurred with the recommendation included in the draft report. These comments are included with the report as an attachment.

cc: Leonora Guarraia
Jeffrey A. Smith
Germaine Roseboro
Monica Summitt
Nicholas Inzeo
Peggy Mastroianni

This page was last modified on November 18, 2004

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