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: Agency Compliance with the Federal Managers' Financial Integrity Act
OIG Report No.2004-07-AIC

The Federal Managers' Financial Integrity Act of 1982 (FMFIA), P.L. 97-255, as well as the Office of Management and Budget's (OMB) Circular A-123, Management Accountability and Control, establish specific requirements with regard to management controls. Accordingly, each agency head must establish controls to reasonably ensure that: 1) obligations and costs are in compliance with applicable laws; 2) funds, property and other assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and 3) revenues and expenditures applicable to agency operations are properly recorded and accounted for, in order to permit the preparation of reliable financial and statistical reports, as well as to maintain accountability over the assets. FMFIA further requires each executive agency head, on the basis of an evaluation conducted in accordance with applicable guidelines, to prepare and submit a signed statement to the President disclosing that their agency's system of internal accounting and administrative controls fully comply with requirements established in FMFIA.

On October 20, 2004, the Office of Research, Information and Planning (ORIP) submitted EEOC's FY 2004 FMFIA Assurance Statement to the Office of Inspector General (OIG) for review. EEOC Order 195.001, Management Accountability and Controls requires the OIG to annually provide a written advisory to the Chair on whether the management control evaluation process complied with OMB guidelines. To make this determination, OIG reviewed: 1) assurance statements submitted by headquarters and district directors attesting that their systems of management accountability and control were effective and that resources under their control were used consistent with the agency's mission and in compliance with the laws and regulations set out in the FMFIA; 2) all functional area summary tables, and functional area reports; and 3) ORIP's FY 2004 FMFIA Assurance Statement and Assurance Statement Letter, with attachments. Based on our independent assessment of this year's process, OIG is pleased to advise you that the agency's management control evaluation was conducted in accordance with OMB's standards.

Further, based on the results of audits, evaluations, and investigations conducted by OIG during FY 2004, and information obtained through intra-office exchanges, OIG concurs with ORIP's assertion that the Agency had no material weaknesses during this reporting cycle.

Regarding the disclosure of eleven (11) incidents of financial non-conformance noted in Attachment 4 of the Assurance Statement Letter, provided by the Office of Chief Financial Officer and Administrative Services (OCFOAS), OIG concludes that all eleven (11) of the non-conformances were corrected during FY 2004. One (1) new non-conformance was identified in FY 2004 regarding the development of an actuarial model for estimating compensation benefits. This non-conformance does not rise to the level of a material weakness for the purpose of externally reporting FMFIA issues.

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