Semiannual Report to Congress

October 1, 2004ĖMarch 31, 2005
Office of the Inspector General


Appendix 3

Glossary of Terms


The following are definitions of specific terms as they are used in this report.

Alien: Any person who is not a citizen or national of the United States.

Combined DNA Index System: A distributed database with three hierarchical levels that enables federal, state, and local forensic laboratories to compare DNA profiles electronically.

Disclaimer of Opinion: A disclaimer of opinion results when auditors are unable to express an opinion on the fairness of the agency financial statements due to a limiting factor, such as a lack of adequate supporting financial information.

Draw down: The process by which a grantee requests and receives federal funds.

Enterprise Architecture: An Enterprise Architecture (EA) establishes an agency-wide roadmap to achieve an agencyís mission through optimal performance of its core business processes within an efficient IT environment. An EA is made up of four components: Business Architecture, Applications Architecture, Data Architecture, and Technical Architecture.

External Audit Report: The results of audits and related reviews of expenditures made under Department contracts, grants, and other agreements. External audits are conducted in accordance with the Comptroller Generalís Government Auditing Standards and related professional auditing standards.

Internal Audit Report: The results of audits and related reviews of Department organizations, programs, functions, computer security and IT, and financial statements. Internal audits are conducted in accordance with the Comptroller Generalís Government Auditing Standards and related professional auditing standards.

Material Weakness: A reportable condition in which the design or operation of the internal control does not reduce to a relatively low level the risk that error, fraud, or noncompliance in amounts that would be material in relation to the principal statements or to performance measures may occur and not be detected within a timely period by employees in the normal course of their assigned duties.

Qualified Opinion: The judgment by the certified public accountant in an audit report that “except for” something, the financial statements fairly present the financial position and operating results of the entity.

Questioned Cost: A cost that is questioned by the OIG because of: 1) an alleged violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds; 2) a finding that, at the time of the audit, such cost is not supported by adequate documentation; or 3) a finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable.

Recommendation That Funds be Put to Better Use: Recommendation by the OIG that funds could be used more efficiently if management of an entity took actions to implement and complete the recommendation, including: 1) reductions in outlays; 2) deobligation of funds from programs or operations; 3) withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or bonds; 4) costs not incurred by implementing recommended improvements related to the operations of the entity, a contractor, or grantee; 5) avoidance of unnecessary expenditures noted in pre-award reviews of contract or grant agreements; or 6) any other savings that are specifically identified.

Reportable Condition: Includes matters coming to the auditorís attention that, in the auditorís judgment, should be communicated because they represent significant deficiencies in the design or operation of internal controls that could adversely affect the entityís ability to properly report financial data.

Supervised Release: Court-monitored supervision upon release from incarceration.

Unqualified Opinion: An auditorís report that states the financial statements present fairly, in all material respects, the financial position and results of operations of the reporting entity, in conformity with generally accepted accounting principles.

Unsupported Cost: A cost that is questioned by the OIG because the OIG found that, at the time of the audit, the cost was not supported by adequate documentation.



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