audit

Independent Auditors’ Report Independent Auditors’ ReportUnited States Department of the Interior OFFICE OF INSPECTOR GENERAL Washington, D.C. 20240 January 31, 2003 Memorandum To: The Secretary From: Earl E. Devaney Inspector General Subject: Independent Auditors Report on the U.S. Department of the Interiors Fiscal Year 2002 Annual Report on Performance and Accountability (No. 2003-I-0014) We contracted with KPMG LLP (KPMG), an independent certified public accounting firm, to audit the Department of the Interiors (DOI) financial statements as of September 30, 2002 and for the year then ended. The contract required that KPMG conduct its audit in accordance with the Comptroller General of the United States of Americas Government Auditing Standards, the Office of Management and Budgets Bulletin 01-02 Audit Requirements for Federal Financial Statements, and the General Accounting Office/Presidents Council on Integrity and Efficiencys Financial Audit Manual.AUDIT RESULTS In its audit report dated January 28, 2003, (Attachment 1), KPMG issued an unqualified opinion on DOIs financial statements for fiscal years 2002 and 2001. The report also identified 12 internal control weaknesses and 3 instances of noncompliance with laws and regulations related to the following areas:INTERNAL CONTROL WEAKNESSES Material Weaknesses � Security and General Controls Over Financial Management Systems � Controls Over Property, Plant, and Equipment � ...