FY 2014 Agency Financial Report

TABLE OF CONTENTS

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A Message from the Attorney General

Section I: Management’s Discussion and Analysis 

Mission 
Strategic Goals and Objectives 
Organizational Structure 
Financial Structure 
FY 2014 Resource Information 
Analysis of Financial Statements 
Summary of Performance Information 
FY 2014-2015 Priority Goals 
Analysis of Systems, Controls, and Legal Compliance 
Management Assurances 
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

Section II: Financial Section

Overview 
A Message from the Chief Financial Officer 
Office of the Inspector General Commentary and Summary on the Department’s FY 2014 Annual Financial Statements 
Independent Auditors’ Report on the 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 Sheets 
     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 
Other Information 
     Consolidating Balance Sheets
     Consolidating Statements of Net Cost
     Consolidating Statements of Changes in Net Position
     Combining Statements of Custodial Activity 
     Combined Schedule of Spending 
     Freeze the Footprint

Section III:  Management Section 

Overview
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 

Appendices

(A)     Improper Payments Information Act of 2002, as Amended, Reporting Details 
(B)     Acronyms 
(C)     Department Component Websites

 


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Introduction

This Report’s Purpose and Reporting Process

The Agency Financial Report (AFR) is the Department of Justice’s (DOJ or the Department) 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 November 12, 2014.

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 2013 and FY 2014 and reports on all accounts and associated activities of each office, bureau, and activity of the Department.  The Department’s FY 2014 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 2014-2018 is available electronically at http://www.justice.gov/jmd/strategic-plan-fiscal-years-2014-2018-0.  The Strategic Plan includes three strategic goals and related objectives, which are referred to throughout this report.

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 2014 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 plan required by the FMFIA for the internal control weakness.

Appendices (A) Improper Payments Information Act, as Amended, 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 (IPIA), as Amended – Requires reporting on agency efforts to identify and reduce improper payments 

Updated January 2, 2015