We provided a draft audit report to JMD, FPI, DEA, and ATF for review and comments. Each component’s comments have been incorporated in Appendices VII through X of this report, which details the actions taken or plans for implementing our recommendations. Based on the written comments from the audited components, minor adjustments were made to the report and the status of the recommendations are as follows.

1. Closed (JMD).

2. Closed (JMD).

3. Resolved (OBDs/JMD). This recommendation can be closed when we receive documentation supporting that for the OBDs, JMD has included the following information within the OBDs’ risk assessment:  (1) the results from the most recent financial statement audit, including any material weaknesses or reportable conditions; (2) the effect of those weaknesses or conditions on its risk of making improper payments; and (3) a description of the corrective action taken to address those weaknesses or conditions as required by Bulletin 06-11.

4. Resolved (OBDs/JMD). This recommendation can be closed when we receive documentation supporting that for the OBDs, JMD has included the following information within the OBDs’ risk assessment:  (1) an assurance statement of an unqualified, qualified, or no‑assurance opinion; (2) the reason for the opinion and its effect on the component's risk of making improper payments; and (3) any corrective actions being taken to address the opinion and the component's risk.

5. Resolved (OBDs/JMD). This recommendation can be closed when we receive documentation supporting that for the OBDs, JMD has included an assessment of federal award payments made by the recipients and subrecipients as required by Bulletin 06-11.

6. Resolved (FPI). This recommendation can be closed when we receive documentation supporting that the FPI has included the following information within its risk assessment:  (1) the results from the most recent financial statement audit, including any material weaknesses or reportable conditions; (2) the effect of those weaknesses or conditions on its risk of making improper payments; and (3) a description of the corrective action taken to address those weaknesses or conditions as required by Bulletin 06-11.

7. Resolved (FPI). This recommendation can be closed when we receive documentation supporting that the FPI has included the following information within its risk assessment:  (1) an assurance statement of an unqualified, qualified, or no-assurance opinion; (2) the reason for the opinion and its effect on the component's risk of making improper payments; and (3) any corrective actions being taken to address the opinion and the component's risk.

8. Resolved (DEA). This recommendation can be closed when we receive documentation supporting that the DEA has included the following information within its risk assessment:  (1) an assurance statement of an unqualified, qualified, or no-assurance opinion; (2) the reason for the opinion and its effect on the component's risk of making improper payments; and (3) any corrective actions being taken to address the opinion and the component's risk.

9. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has included the following information within its risk assessment:  (1) the results from the most recent financial statement audit, including any material weaknesses or reportable conditions; (2) the effect of those weaknesses or conditions on its risk of making improper payments; and (3) a description of the corrective action taken to address those weaknesses or conditions as required by Bulletin 06-11.

10. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has included the following information within its risk assessment:  (1) an assurance statement of an unqualified, qualified, or no-assurance opinion; (2) the reason for the opinion and its effect on the component's risk of making improper payments; and (3) any corrective actions being taken to address the opinion and the component's risk.

11. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has conducted a complete program inventory and risk assessment for each program, and maintained documentation as required by Bulletin 06-11.

12. Closed (JMD).

13. Closed (OBDs/JMD).

14. Resolved (OBDs/JMD). This recommendation can be closed when we receive documentation supporting that for the OBDs, JMD has addressed and included grants within the OBDs’ recovery audit program as required by Bulletin 06-11.

15. Resolved (FPI). This recommendation can be closed when we receive documentation supporting that the FPI has implemented a contract compliance review within its recovery audit program as required by Bulletin 06‑11.

16. Resolved (FPI). This recommendation can be closed when we receive documentation supporting that the FPI has implemented a final policy for its recovery audit program as required by Bulletin 06‑11.

17. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has developed methods for tracking improper payments separately from other debts, so it can provide information on the amount of improper payments identified and recovered; and ATF has included and maintained documentation on the timeframe in which the identified and recovered improper payments occurred.

18. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has demonstrated progress toward utilizing the recovery audit contractor as required by Bulletin 06‑11.

19. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has expanded the scope of the recovery audit program to encompass, at a minimum, all payments made from FY 2003 forward as required by Bulletin 06‑11.

20. Resolved (ATF). This recommendation can be closed when we receive documentation supporting that ATF has developed and implemented a final written policy and procedure when a program is in place for ATF’s recovery audit program as required by Bulletin 06‑11.