Report of Independent Auditors - Cover Letter
November 8, 2007
| MEMORANDUM FOR | LURITA DOAN KATHLEEN M. TURCO |
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| FROM: | BRIAN D. MILLER INSPECTOR GENERAL (J) |
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| SUBJECT: | Audit of the General Services Administration’s Fiscal Years 2007 and 2006 Financial Statements | |
This memorandum transmits PricewaterhouseCoopers, LLP’s (PwC), an independent certified public accounting firm, report on its audit of the General Services Administration’s (GSA) financial statements as of September 30, 2007 and 2006, and for years then ended, and the Office of Inspector General’s (OIG) Report on Internal Controls over Performance Measures.
The Chief Financial Officers (CFO) Act of 1990 (P.L. 101-576) requires GSA’s OIG or an independent external auditor, as determined by the OIG, to audit the Agency’s financial statements. Under a contract monitored by the OIG, PwC performed the Fiscal Years 2007 and 2006 Financial Statements Audit of GSA. The contract required that the audit be performed in accordance with Government Auditing Standards issued by the Comptroller General of the United States and the Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements.
Results of Independent Audit
Report on the Financial Statements of GSA, the Federal Buildings Fund, and the Acquisition Services Fund
In PwC’s opinion, the financial statements of GSA, the Federal Buildings Fund, and the Acquisition Services Fund presented fairly, in all material respects, the balance sheets, as of September 30, 2007 and 2006, the related consolidated and individual statements of net cost, changes in net position, and the combined statement of budgetary resources for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Report on Internal Controls
In its report on internal controls over financial reporting, PwC determined that GSA, the Federal Buildings Fund, and the Acquisition Services Fund had no material weaknesses. However, PwC identified two significant deficiencies concerning GSA’s need to (1) improve the controls over monitoring, accounting, and reporting of budgetary transactions and (2) strengthen system access, separation of duties, and monitoring controls.
Compliance with Laws and Regulations
PwC also reported no reportable instances of GSA non-compliance with applicable laws and regulations specified in Appendix E of OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements. In addition, PwC found no reportable instances of non-compliance in which GSA’s financial management systems did not substantially comply with the requirements of the Federal Financial Management Improvement Act (FFMIA).
OIG Evaluation of PwC’s Audit Performance
To ensure the quality of the audit work performed, we conducted a review of PwC’s Fiscal Years 2007 and 2006 Financial Statements Audit of GSA. Specifically, we:
- Reviewed and accepted PwC’s approach and planning of the audit;
- Ensured the qualifications and independence of the auditors;
- Monitored the progress of the audit at key points;
- Reviewed and accepted PwC’s audit report; and
- Performed other procedures we deemed necessary.
PwC is responsible for the attached auditor report dated November 8, 2007, and the conclusions expressed therein. We do not express an opinion on GSA’s financial statements; internal controls; or on whether GSA’s financial management systems substantially complied with FFMIA; or compliance with laws and regulations.
Report on Internal Controls Over Performance Measures
In accordance with OMB Bulletin No. 07-04, the OIG performed the necessary audit procedures to obtain an understanding of the design and operation of internal controls over the reliability of data supporting the performance measures reported in the Management Discussion and Analysis section of GSA’s Fiscal Year 2007 Annual Performance and Accountability Report. Our review found that these internal controls as designed by the Office of the Chief Financial Officer (OCFO) are operating effectively.
The Office of Inspector General appreciates the courtesies and cooperation extended to PwC and to our audit staff during the audit and review. If you or your staff has any questions, please contact Andrew Patchan Jr., Assistant Inspector General for Auditing at (202) 501-0374.
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