OIG Transmittal

Bureau of the Comptroller and Global Financial Services
Report
December 16, 2013




Image of U.S. Department of State seal.

United States Department of State

The Inspector General

December 16, 2013

INFORMATION MEMO FOR THE SECRETARY
FROM: OIG - Steve A. LinickInitials of Steve A. Linick.
SUBJECT: Independent Auditor's Report on the U.S. Department of State 2013
and 2012 Financial Statements (AUD-FM-14-10)

An independent certified public accounting firm, Kearney & Company, P.C., was engaged to audit the consolidated financial statements of the U.S. Department of State (Department) as of September 30, 2013 and 2012, and for the years then ended; to provide a report on internal control over financial reporting; to report on whether the Department's financial management systems substantially complied with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA); and to report any reportable noncompliance with laws, regulations, contracts, and grant agreements it tested.?? The contract required that the audit be performed in accordance with U.S. generally accepted government auditing standards and Office of Management and Budget audit guidance.

In its audit of the Department's 2013 and 2012 financial statements, Kearney & Company found

  • the consolidated financial statements present fairly, in all material respects, the financial position of the Department as of September 30, 2013 and 2012, and its net cost of operations, 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;
  • no material weaknesses1 in internal control over financial reporting; and
  • instances of reportable noncompliance with laws, regulations, contracts, and grant agreements tested, including instances in which the Department's financial management systems did not substantially comply with FFMIA.

Kearney & Company is responsible for the attached auditor's report, which includes the Independent Auditor's Report, the Report on Internal Control Over Financial Reporting, and the Report on Compliance With Applicable Provisions of Laws, Regulations, Contracts, and Grant Agreements, dated December 12, 2013, and the conclusions expressed in the report.?? The Office of Inspector General (OIG) does not express an opinion on the Department's financial statements or conclusions on internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements, including whether the Department's financial management systems substantially complied with FFMIA.

Comments on the auditor's report from the Bureau of the Comptroller and Global Financial Services are attached to the report.

OIG appreciates the cooperation extended to it and Kearney & Company by Department managers and staff during the conduct of this audit.

Attachments: ??As stated.

UNCLASSIFIED

 


1A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. (back to text)