November 14, 2007
|TO:||Naomi C. Earp
|FROM:||Aletha L. Brown
|SUBJECT:||Audit of the Equal Employment Opportunity Commission’s Fiscal Year 2007 and 2006 Financial Statements (OIG Report No. 2007-08-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 2007 and 2006. 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 07-04, Audit Requirements for 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 2007 and 2006 financial statements. In its Report on Internal Control, Cotton and Company LLP noted two matters involving internal control and its operation that were considered to be significant deficiencies. These matters included inaccurate timekeeping and the FY 2007 Anti-Deficiency Act violation. In its Report on Compliance with Laws and Regulations, Cotton and Co. LLP noted an instance of non compliance with 31 U.S.C. Section 1517, Subsection (a) relating to the FY 2007 Anti-Deficiency Act violation.
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 2, 2007 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. The Office of the Chief Financial Officer, the Office of Legal Counsel and the Office of Information Technology indicated that that had no comments. The Office of Human Resources provided comments and they are included with the report as an attachment (Appendix A).
cc: Anthony Kaminski
Jeffrey A. Smith
November 13, 2007
|TO :||Aletha L. Brown
|FROM :||Angelica E. Ibarguen /s/
Chief Human Capital Officer
|SUBJECT :||Response for FY 2007 Financial Audit|
Thank you for the opportunity to respond to your draft report issued November 8, 2007. I am specifically responding to the recommendation in the “Inaccurate Timekeeping” section of the report.
Towards the end of FY 2007, a revised Administrative Manual for Time and Attendance was produced and placed on EEOC’s internal website for use by all timekeepers and certifiers. The manual dictates what timekeepers and certifiers’ roles are, what should be reviewed on the timecards and how to proceed with incorrect or incomplete information. OHR also continues to send our FPPS Users notes of importance and those issues that need periodic reminders. An automated time and attendance system such as QuickTime, which we understand is in the FY 2009 budget, will virtually eliminate inaccurate reporting of information by both the employee and timekeeper.
If you have any additional questions or concerns, please feel free to contact me or Randy Garmon of my staff at extension 4341.
Cc: Anthony Kaminski, Chief Operating Officer