BUREAU OF PRISONS COMMISSARY TRUST FUND
MANAGEMENT LETTER REPORT
FISCAL YEAR 1995

 

Audit Report 97-02, (11/96)

 

 

TABLE OF CONTENTS

 

OFFICE OF THE INSPECTOR GENERAL COMMENTARY AND SUMMARY

MANAGEMENT LETTER

RECONCILIATION OF FUND BALANCE WITH TREASURY

ADHERENCE TO DOCUMENTED BUREAU OF PRISONS PROCEDURES

APPENDIX I - BUREAU OF PRISONS RESPONSE

APPENDIX II - AUDIT DIVISION ANALYSIS AND SUMMARY OF ACTIONS NECESSARY TO CLOSE THE REPORT

 

 

OFFICE OF THE INSPECTOR GENERAL
COMMENTARY AND SUMMARY

The attached management letter was prepared by Brown & Company, Certified Public Accountants, as part of their audit of the BOP Commissary Trust Fund financial statements for the year ended September 30, 1995 (Report 96-15A). Federal correctional facilities have been granted the authority to operate Trust Fund Programs to provide inmates with products and services which they were accustomed to in civilian life but which are not provided by the Bureau of Prisons (BOP). Inmates are permitted to purchase these items as a privilege which may be taken away at the discretion of BOP personnel. The funds from the operation of the Trust Fund Program are accounted for in a revolving account (Commissary Trust Fund) maintained by the BOP Trust Fund Branch.

The Office of the Inspector General (OIG) contracted with Brown & Company to perform the audit. The OIG also performs an oversight role in the process to ensure compliance with the Chief Financial Officers Act of 1990. OIG oversight includes monitoring the progress of the audit, reviewing supporting workpapers, coordinating issuance of reports, following up on findings and management letter issues, and performing other functions deemed necessary under the circumstances. The audit was conducted in accordance with generally accepted government auditing standards.

Although the auditors were not contracted to perform control testing sufficient to enable them to express an opinion on the internal control structure as a whole, they noted certain conditions involving the internal control structure and its operations. The management letter presents those internal control weaknesses that, in the independent auditor's opinion, do not have a material effect on the financial statements, but are areas of the management process that could, in some cases, adversely affect the organization's ability to record, process, summarize, and report financial data.

In this management letter, Brown & Company noted conditions pertaining to two areas: reconciliation of the fund balance with Treasury and adherence to documented BOP procedures. Strengthening internal controls in these areas is considered to be important and presents an opportunity to improve operating efficiency.

Report to Management

Report to Management

Report to Management

 

APPENDIX I

Bureau of Prisons Response

Bureau of Prisons Response

Bureau of Prisons Response

 

APPENDIX II

 

OFFICE OF THE INSPECTOR GENERAL AUDIT DIVISION
ANALYSIS AND SUMMARY OF ACTIONS NECESSARY
TO CLOSE THE REPORT

 

BUREAU OF PRISONS COMMISSARY TRUST FUND
MANAGEMENT LETTER REPORT FISCAL YEAR 1995

 

  1. Resolved. This recommendation can be closed when we receive a copy of the most recent monthly consolidated reconciliation.
  2. Resolved. This recommendation can be closed when we receive a copy of the BOP document requiring the Finance Office and Regional Offices to closely monitor differences at each institution and an example of recent monitoring activities and results.
  3. Closed. Subsequent to their response, the Trust Fund Branch provided documentation of the supervisory training referred to in Appendix I.
  4. Resolved. While we agree with the need to review staff work via performance evaluations, the recommendation addresses the need to ensure that day to day work of new hires and reassigned staff is reviewed by a supervisor to ensure the timely detection of errors. This recommendation can be closed when we receive documentation from management reemphasizing the need for supervisory personnel to review the work of newly hired or reassigned staff to ensure that transactions are processed correctly and errors detected and corrected in a timely manner.

 

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