November 14, 2007
|TO:||Naomi C. Earp
|FROM:||Aletha L. Brown
|SUBJECT:||Agency Compliance with the Federal Managers’ Financial Integrity Act
(OIG Report No. 2007-18-AIC)
The Federal Managers’ Financial Integrity Act (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.
EEOC Order 195.001, Internal Control Systems requires this office to annually provide a written advisory to the Chair on whether the management control evaluation process complied with OMB guidelines. On November 13, 2007, the Office of Research, Information and Planning (ORIP) submitted EEOC’s Fiscal Year 2007 Federal Managers’ Financial Integrity Act Assurance Statement to the President, to the Office of Inspector General (OIG) for review. 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 of 1982; (2) all functional area summary tables, and functional area reports; and (3) ORIP’s Fiscal year 2007 Federal Managers’ Financial Integrity Act 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 Fiscal Year 2007, OIG concurs with ORIP’s assertion that the Agency had no material weaknesses during this reporting cycle.
OIG concurs with ORIP’s reporting of three instances of financial non-conformances. The Agency corrected one of the three financial non-conformances identified in FY 2007. The Agency also implemented corrective action plans to resolve the two remaining non-conformances in FY 2008.