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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

Statement on Management Controls

In planning and performing our audit of the Fund, we considered JMD's and the Fund recipients' control structure for the purpose of determining our audit procedures. This evaluation was not made for the purpose of providing assurance on each of their management control structures as a whole. However, we noted certain matters involving management controls that we considered to be reportable conditions under government auditing standards.

Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operations of the management control structure that, in our judgment, could adversely affect JMD's ability to effectively administer the Fund and the components' abilities to manage the funds received. We identified weaknesses in the following areas:

  • JMD's review of billings submitted by the Department components for reimbursement from the Fund;
  • Department components' internal procedures related to Fund expenditures included in the bills submitted to JMD;
  • pass-through agencies' monitoring of non-DOJ users' Fund expenditures, including the adherence to written agreements; and
  • standardized retention periods for Fund accounting records and receipts.

Because we are not expressing an opinion on JMD's or the Fund recipients' management control structures as a whole, this statement is intended for the information and use of JMD in managing the Fund. This restriction is not intended to limit the distribution of this report.