Department of Justice Process for Identifying, Preventing, and Recovering Improper and Erroneous Payments

Audit Report 05-19
April 2005
Office of the Inspector General

Statement on Internal Controls

In planning and performing our audit, we considered Department componentsí internal controls for the purpose of determining our auditing procedures. We also reviewed various controls over the payment processes at these components to develop an understanding of those processes. In addition, we conducted a limited review of the controls, including policies and procedures, which the BOP, FBI, OJP, and USMS represented were in place to prevent improper payments. However, these reviews did not include an overall assessment or testing of the internal control structure. Therefore, these reviews were not made for the purpose of providing assurance on the internal control structure as a whole. However, we noted certain matters that we consider to be reportable conditions under generally accepted 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 increase the risks of making improper payments or could hinder the implementation of cost-effective recovery audit programs. We noted deficiencies relating to the identification and prevention of improper payments, discussed in Finding No. 1. We also noted deficiencies concerning recovery audit efforts, discussed in Finding No. 2. However, we did not consider these deficiencies to be a result of systemic internal control issues.

Because we are not expressing an opinion on the componentsí internal control structure as a whole, this statement is intended solely for the information and use of JMD, BOP, FBI, OJP, and USMS in overseeing each componentís compliance with the IPIA, and with implementing and administering a recovery audit program within each component.

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