JMD: AFP: Appendix 2

APPENDIX II

OFFICE OF THE INSPECTOR GENERAL, AUDIT DIVISION
ANALYSIS AND SUMMARY OF ACTIONS NECESSARY
TO CLOSE THE REPORT

The Asset Forfeiture Management Staff, Justice Management Division (AFMS) was provided a draft of the Report of Independent Auditors on Internal Control and their comments on the findings and recommendations were considered in preparing this Analysis and Summary of Actions Necessary to Close the Report. We will continue to review the actions taken during future financial statement audits in order to assess whether the findings have been adequately addressed and recommendations implemented. The recommendations will be closed either when the action requested is completed or subsequent audit testing verifies the adequacy of corrective actions. In the case of a repeat recommendation, the report recommendation will be immediately closed upon report issuance, but will continue to be followed up on in the prior report where the recommendation was initially made.

Recommendation Number:

  1. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS has adopted effective processes by which they can enforce compliance with standards designed to ensure that the impact of status, valuation, category and substitute res errors are minimized throughout the fiscal year.
  2. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS has established a reporting and monitoring process that communicates and emphasizes the importance of correctly classifying obligations as delivered and undelivered throughout the fiscal year, not just at fiscal year-end.
  3. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that procedures have been developed and implemented within AFMS or JMD to perform frequent validation of obligation status recorded in the financial system and sampling of open obligations throughout the fiscal year.
  4. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS ensures reimbursable agreements are obligated for the appropriate amount for Program Operation Expenses or Investigative Expenses when they are initially entered into the system and ensures the appropriate amount of obligations are included in interim financial statements.
  5. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS has implemented procedures to ensure that USMS is properly accounting for real estate dispositions in the financial system and CATS, including a review by AFMS of the monthly reconciliation of the real property disposition spreadsheet to CATS and FMS to verify that all real property sale transactions are properly accounted for.
  6. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS is performing a detailed review of all forfeiture revenue activity at each financial reporting date to ensure transactions are accounted for in the proper period.
  7. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS has improved the on-going communication and follow-through among participating agencies pertaining to transaction processing standards, errors, exceptions, missing documents, unresolved discrepancies, control matters and other items that impact the timely and accurate preparation of the AFF/SADF financial statements.
  8. Resolved. This recommendation will be closed when subsequent financial statement audit testing verifies that AFMS has established procedures to monitor JMD's review of BCA transactions to ensure timely and accurate identification of the allocation of BCA balances to the AFF/SADF.
Updated March 9, 2015