Office of Justice Programs
Fiscal Year 2000

Report No. 01-22
August 2001
Office of the Inspector General

As the granting arm of the United States Department of Justice (Department), the Office of Justice Programs' (OJP) mission is to provide federal leadership in developing the nation's capacity to prevent and control crime, improve the criminal and juvenile justice systems, increase knowledge about crime and related issues, and assist crime victims by establishing and supporting various programs aimed at improving the overall effectiveness of the criminal justice system.

This audit report contains the Annual Financial Statement of OJP for the fiscal year ended September 30, 2000. Under the direction of the Office of the Inspector General, KPMG LLP performed the audit, which resulted in an unqualified opinion. An unqualified opinion means that the financial statements present fairly, in all material respects, the financial position and results of operations of the entity. For FY 1999, OJP also received an unqualified opinion on its financial statements (OIG Report 00-14). Comparative financial statements were not required this year and are therefore not presented.

OJP continued making improvements in its ability to meet federal financial reporting requirements as evidenced by its unqualified opinion, however there are areas that still warrant management attention. While the auditors did not report any material weaknesses for OJP, they reported three reportable conditions related to OJP's internal controls. The auditors identified the need for improvements with regard to the accrual process for contract and other vendor accounts payable. OJP did not have a process in place for accruing this type of accounts payable and has over the years relied on the auditors to inform them through audit adjustment of the amount that should be recorded as accounts payable. Additionally, the auditors noted that while OJP made improvements in financial statement preparation, it continues to lack controls to ensure that financial statements are prepared in accordance with Office of Management and Budget Bulletin 97-01, as amended; Statements of Federal Financial Accounting Standards; and Department financial statement preparation requirements. Finally, the auditors noted general and application control weaknesses. However, several of these corrective actions had been implemented by the end of the auditors' fieldwork. The auditors also noted noncompliance with the standard general ledger for certain transactions of its Crime Victims Fund.