In planning and performing the audit of the USMS’s and OFDT’s Oversight of IGAs, we considered the internal control structure for the award and monitoring of IGAs and payments under those agreements. We focused on the internal controls related to the determination of the IGA jail-day rate, amounts and types of payments made to state and local facilities, and compliance with internal policies concerning IGAs.

This evaluation was not made for the purpose of providing assurance on the internal controls over IGAs as a whole. However, we noted certain matters involving the internal controls that we considered to be reportable conditions under the Government Auditing Standards. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the ability of the USMS and OFDT to use funds efficiently and effectively. We found that the system for awarding and monitoring IGAs need vast improvements (see Findings II and III).

Because we are not expressing an opinion on the USMS’s and OFDT’s controls over IGAs as a whole, this statement is intended solely for the information and use of USMS and OFDT management in monitoring the IGA program. This restriction is not intended to limit the distribution of this report.