As required by Government Auditing Standards, we reviewed records and other documents pertaining to improper payments to obtain reasonable assurance about each component’s compliance with applicable laws and regulations, which, if not complied with, could have a material effect on DOJ compliance with those laws and regulations. Compliance with laws and regulations applicable to improper payments is the responsibility of each component’s management. An audit includes examining, on a test basis, evidence about compliance with laws and regulations. At the time of our audit, the pertinent legislation and the applicable regulations were:

• Pub. L. No. 107-300 (2002), Improper Payments Information Act of 2002

• Pub. L. No. 107-107 (2001), National Defense Authorization Act for FY 2002, Subchapter VI – Recovery Audits

• Office of Management and Budget Memorandum M-03-07, Programs to Identify and Recover Erroneous Payments to Contractors

• Office of Management and Budget Memorandum M-03-12, Allowability of Contingency Fee Contracts for Recovery Audits

• Office of Management and Budget Memorandum M-03-13, Implementation Guidance for the Improper Payments Information Act of 2002, P.L. 107-300

• Office of Management and Budget Memorandum M-04-20, FY 2004 Performance and Accountability Reports and Reporting Requirements for the Financial Report of the United States Government

• Office of Management and Budget Circular A-136 - Revised July 2006, Financial Reporting Requirements, Sections II.2.9 and II.5.6

• Office of Management and Budget Circular A-123, Appendix C, Requirements for Effective Measurement and Remediation of Improper Payments

• Office of Management and Budget Circular A-123 Revision, Management’s Responsibility for Internal Control

• Financial Management Policies and Procedures Bulletin 06-11

Except for the issues discussed in the Findings and Recommendations section of this report, nothing came to our attention that caused us to believe that the components in our audit were not in compliance with the laws and regulations listed above and on the previous page.