TABLE OF CONTENTS
Strategic Goals and Objectives
FY 2013 Resource Information
Analysis of Financial Statements
Summary of Performance Information
FY 2012-2013 Priority Goals
Analysis of Systems, Controls, and Legal Compliance
Summary of Material Weakness and Corrective Actions
Improper Payments Information Act of 2002, as Amended
Possible Effects of Existing, Currently Known Demands, Risks, Uncertainties, Events, Conditions, and Trends
Other Management Information, Initiatives, and Issues
Limitations of the Financial Statements
A Message from the Chief Financial Officer
Office of the Inspector General Commentary and Summary on the Department’s FY 2013 Annual Financial Statements
Independent Auditors’ Report on Financial Statements
Independent Auditors’ Report on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditors’ Report on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Principal Financial Statements and Related Notes
Consolidated Balance Sheet
Consolidated Statements of Net Cost
Consolidated Statements of Changes in Net Position
Combined Statements of Budgetary Resources
Combined Statements of Custodial Activity
Notes to the Financial Statements
Required Supplementary Information
Combining Statements of Budgetary Resources
Required Supplementary Stewardship Information
Consolidated Stewardship Investments
Consolidating Balance Sheets
Consolidating Statements of Net Cost
Consolidating Statements of Changes in Net Position
Combining Statements of Custodial Activity
Combining Schedule of Spending
Office of the Inspector General's Report on the Top Management and Performance Challenges Facing the Department of Justice
Management's Response to the Office of the Inspector General's Report on the Top Management and Performance Challenges Facing the Department of Justice
FMFIA Corrective Action Plan
Undisbursed Balances in Expired Grant Accounts
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This Report's Purpose and Reporting Process
The Circular No. A-136 guidance of the Office of Management and Budget (OMB) provides agencies the option to produce a consolidated Performance and Accountability Report (PAR) or a separate Agency Financial Report (AFR) and Annual Performance Report (APR)1. The Department of Justice (DOJ) has historically published consolidated financial and performance management reporting via the PAR. However, starting in fiscal year (FY) 2013, the Department uses an AFR and APR instead of the PAR.
The AFR is the Department’s principal report conveying to the President, Congress, and the American public its commitment to sound financial management and stewardship of public funds. The AFR reports on the agency end-of-fiscal-year financial position that includes, but is not limited to, financial statements, notes to the financial statements, and reports of the independent auditors, as well as a performance summary. The AFR will be issued on December 12, 2013.
The Department’s AFR is prepared under the direction of the Department’s Chief Financial Officer (CFO). The financial statements contained within this report are prepared by the Department’s Justice Management Division, Finance Staff, and audited by the Office of the Inspector General (OIG). This report also includes the Department’s financial statements for FY 2012 and FY 2013 and reports on all accounts and associated activities of each office, bureau, and activity of the Department. The Department’s FY 2013 audited financial statements have been consolidated or combined based upon the results of audits undertaken in each of the nine Departmental financial reporting entities.
The Department continues to enforce vigorously the broad spectrum of laws of the United States; notably, the fight against terrorism continues to be the highest priority of the Department. The Department’s current Strategic Plan for FYs 2012-2016 is available electronically at http://www.justice.gov/jmd/strategic2012-2016/index.html). The Strategic Plan includes three strategic goals and related objectives, which are referred to throughout this report.2
Organization of the Report
Message from the Attorney General: This report begins with a message from the Attorney General. In it, the Attorney General provides his assessment of the completeness and reliability of the performance and financial data, as required by OMB Circulars A-11 and A-136.
Section I – Management’s Discussion and Analysis: This section includes summary information about the mission and organization of the Department; resource information; an analysis of the Department’s financial statements; an analysis of performance information for the Department’s key performance measures; and assurances and information related to internal control and financial management systems conformance with government-wide requirements, as required by the Federal Managers’ Financial Integrity Act (FMFIA)and OMB Circular A-123.
Section II – Financial Section: This section begins with a message from the Department’s CFO and is followed by the OIG’s Commentary and Summary on the Department’s FY 2013 Annual Financial Statements. This section also includes the reports of the Independent Auditors and the Department’s consolidated financial statements and related notes.
Section III – Management Section: This section includes the OIG-identified Top Management and Performance Challenges Facing the Department of Justice, the Department of Justice Management response to those challenges, and the corrective action plans required by the FMFIA for the internal control weaknesses.
Appendices: (A) Improper Payments Information Act Reporting Details; (B) Acronyms; and (C) Department Websites.
Compliance with Legislated Reporting Requirements
This report meets the following legislated reporting requirements:
Inspector General (IG) Act of 1978, as Amended – Requires information on management actions in response to Inspector General audits
Federal Managers’ Financial Integrity Act of 1982 (FMFIA) – Requires a report on agency internal controls that protect the integrity of federal programs and whether agency financial systems conform with related requirements
Government Performance and Results Act of 1993 (GPRA) and GPRA Modernization Act of 2010 (GPRAMA) – Requires performance reporting against all established agency goals outlined in current strategic planning documents
Government Management Reform Act of 1994 (GMRA) – Requires an audit of agency financial statements
Federal Financial Management Improvement Act of 1996 (FFMIA) – Requires an assessment of agency financial systems for adherence to government-wide requirements and standards
Reports Consolidation Act of 2000 (RCA) – Authorizes the consolidation of certain financial and performance management reports of federal agencies in an annual Performance and Accountability Report
Improper Payments Information Act of 2002, as Amended – Requires reporting on agency efforts to identify and reduce improper payments
1. The APR, which includes performance information and metrics, will be issued together with the President’s Budget in early 2014. ↑
2. The Department is currently completing a new Strategic Plan for FYs 2014-2018 that will be made available to the public in early 2014. ↑