Equal Employment Opportunity Commission
Independent Auditor’s Report
We audited the Balance Sheets of the U.S. Equal Employment Opportunity Commission (EEOC) as of September 30, 2007, and 2006, and the related Statements of Net Cost, Changes in Net Position, and Budgetary Resources for the years then ended. These financial statements are the responsibility of EEOC management. Our responsibility is to express an opinion on the financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America; 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 07-04, Audit Requirements for Federal Financial Statements. These standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing accounting principles used and significant estimates made by management, as well as evaluating overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of EEOC as of September 30, 2007, and 2006, and its net costs, changes in net position, and budgetary resources for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Management’s Discussion and Analysis (MD&A) and other accompanying information are not required as part of EEOC’s basic financial statements. For MD&A, which is required by OMB Circular A-136, Financial Reporting Requirements, and the Federal Accounting Standards Advisory Board’s Statement of Federal Financial Accounting Standards No. 15, Management’s Discussion and Analysis, we made certain inquiries of management and compared the information for consistency with EEOC’s audited financial statements and against other knowledge we obtained during our audits. For other accompanying information, we compared the information with the financial statements. We did not audit the MD&A or other accompanying information and therefore express no opinion on them.
In accordance with Government Auditing Standards, we have also issued separate reports dated November 2, 2007, on our consideration of EEOC’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws and regulations. The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing results of our audits.
Cotton & Company LLP
Colette Y. Wilson, CPA
November 2, 2007