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Follow-up Audit of the Department of Justice Counterterrorism Fund

Report No. 03-33
September 2003
Office of the Inspector General

Appendix V
Office of the Inspector General, Audit Division
Analysis and Summary of Actions Necessary to Close the Report

Recommendation Number:
1. Resolved. JMD accepted our recommendation and agreed to work with EOUSA to remedy the issues. This recommendation can be closed when we receive evidence that the $17,491 in questioned costs attributable to EOUSA has been remedied appropriately.
2. Resolved. According to JMD, the FBI returned $454,638 to the Fund and provided additional documentation for the remaining items questioned. JMD plans to work with the FBI to resolve these items. To close this recommendation, please provide us with evidence that the $454,638 was returned and the remaining $865,053 has been remedied appropriately.
3. Resolved. JMD responded that the USMS returned $225,000 to the Fund. JMD and the USMS will work together to address the remaining questioned costs. This recommendation can be closed when we receive evidence that the $225,000 was returned and the remaining $1,059,453 has been remedied in an appropriate manner.
4. Resolved. JMD agreed to deobligate the $19,504 in Fund monies that SEPS returned. Please provide documentation to support the deobligation.
5. Resolved. In its response, JMD stated that the reimbursement agreements will be revised to incorporate information from the decision making process, including those requests that were authorized and those that were not. JMD also stated that it will work with the FBI and the USMS to ensure that future requests are appropriate. To close this recommendation, please provide us with a sample RA that has been revised appropriately. Further, please provide us with the results of your work with the FBI and USMS regarding their requests for reimbursement from the Fund.
6. Resolved. JMD accepted our recommendation and agreed to remedy the issues identified. In order to close this recommendation, please provide us with documentation to support that the $187,922 in questioned costs attributable to the city of Ogden, Utah, have been remedied appropriately.
7. Resolved. In its response, JMD stated that it will work with the FBI to remedy the $108,290 in questioned costs attributable to the Denver Police Department. This recommendation can be closed when we receive evidence that these questioned costs have been remedied in an appropriate manner.
8. Resolved. According to JMD, it will work with the FBI to remedy the $17,376 in questioned costs attributable to the Georgia Bureau of Corrections. This recommendation can be closed when we receive evidence that these questioned costs have been remedied in an appropriate manner.
9. Resolved. JMD accepted our recommendation and agreed to work with the FBI to remedy the $116,553 in questioned costs attributable to the USDA Forest Service. To close this recommendation, please provide evidence that these questioned costs have been remedied appropriately.
10. Resolved. In its response, JMD stated that it will increase oversight of the Fund by continuing to emphasize the accountability of the receiving components. Further, JMD noted that more detailed reviews of component billings and periodic monitoring of actual expenditures will be considered. As this follow-up audit revealed over $3.1 million in questioned costs, we believe that JMD should establish a system of monitoring Fund expenditures that goes beyond the steps that have been taken previously. In order to close this recommendation, please provide us with additional information about how you plan to increase your oversight of the Fund.
11. Resolved. JMD agreed to issue guidance regarding the retention of records related to Fund expenditures. This recommendation can be closed when we receive the standards and evidence that they have been disseminated to all Fund users.
12. Resolved. In its response, JMD stated that the USMS has an improved financial system and, like the USMS, pointed to the USMS's FY 2001 activities as evidence of the improvement. However, as noted in the report, the FY 2001 agreement was not comprehensive. The only reimbursement the agency received was for overtime; other expenditure categories recorded in other systems were not included. JMD agreed to work with the USMS to ensure that future payments meet financial requirements. In order to close this recommendation, please provide us with evidence that you have reviewed the USMS's system for tracking Fund expenditures and that the USMS has adequately tracked more recent Fund expenditures not related to payroll.
13. Resolved. JMD agreed that monitoring non-DOJ users of Fund monies is important and stated that a process for pass-through funds, including the responsibilities of the pass-through components, will be established. This recommendation can be closed when we receive the written guidance that has been established and evidence that it has been provided to all pass-through components.