U. S. Department of Justice Annual Financial Statement
Fiscal Year 1998

Report No. 99-05
February 1999
Office of the Inspector General


The U.S. Department of Justice, under the direction of the Attorney General, is charged with protecting society against criminals and subversion; upholding the civil rights of all Americans; ensuring healthy competition of business in our free enterprise system; safeguarding the consumer; enforcing environmental, drug, immigration, and naturalization laws; and representing the American people in all legal matters involving the U.S. Government. The Department also plays a significant role in protecting citizens through its efforts for effective law enforcement, crime prevention, crime detection, and prosecution and rehabilitation of offenders. In FY 1998, the Department had over 121,300 employees and funding of over $20 billion.

This audit report contains the Annual Financial Statement of the Department of Justice for the fiscal year ended September 30, 1998. The audit was performed by PricewaterhouseCoopers LLP and resulted in a disclaimer of opinion on the FY 1998 consolidated balance sheet and the related consolidated statements of net costs and changes in net position, and the related combined statements of budgetary resources, financing, and custodial activity. Because of the following deficiencies, the auditors were unable to obtain sufficient evidence about certain account balances and disclosures:

The following table depicts the audit results for the Department consolidated audit as well as for the nine individual component audits for FY 1998. The Department has made progress towards an unqualified opinion, although improvements are still needed in certain areas.