This audit report contains the U.S. Department of Justice’s (Department) Annual Special-Purpose Financial Statements, also known as the Closing Package Financial Statements, for the fiscal years (FY) ended September 30, 2008, and September 30, 2007. In accordance with the Government Management Reform Act of 1994, and under the direction of the Office of the Inspector General (OIG), KPMG LLP performed the audit of the Department’s special-purpose financial statements. KPMG LLP also performed the audit of the Department’s consolidated general purpose financial statements, which were issued in OIG Report No. 09-06.
The Department’s special-purpose financial statements were prepared in accordance with the guidance provided in the U.S. Department of the Treasury’s Financial Manual (TFM), Volume I, Part 2 - Chapter 4700. Their purpose is to assist the U.S. Department of the Treasury in preparing the U.S. Government Financial Report, by reclassifying the Department’s general purpose financial statements into a standard format that will be consolidated with other federal agencies, and reporting the Department’s intragovernmental balances by federal agency to facilitate elimination of agency to agency transactions.
The Department received an unqualified opinion on its FYs 2008 and 2007 special-purpose financial statements. For FY 2008, one significant deficiency was identified in the Department’s financial reporting controls related to the reclassification of certain line item balances from the general purpose financial statements to the special-purpose financial statements. Specifically, the Department’s controls failed to detect a significant misstatement in one of the principal special-purpose financial statements.
The OIG reviewed KPMG LLP’s report and related documentation and made necessary inquiries of its representatives. Our review, as differentiated from an audit in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, an opinion on the Department’s special-purpose financial statements, conclusions about the effectiveness of internal control, or conclusions on the Department’s compliance with the TFM. KPMG LLP is responsible for the attached auditors’ report dated November 17, 2008, and the conclusions expressed in the report. However, our review disclosed no instances where KPMG LLP did not comply, in all material respects, with U.S. generally accepted government auditing standards.