FY 2006 Audit of DHS' Internal Control Over Financial Reporting, OIG -07-20

DEPARTMENT OF HOMELAND SECURITY Office of Inspector General FY 2006 Audit of DHS’ Internal Control Over Financial Reporting OIG-07-20 December 2006OfJice oflnspector General U.S. Department of Homeland Security Washington, DC 20528 Homeland Security November 15,2006 Preface The Department of Homeland Security (DHS) Office of Inspector General (OIG) was established by the Homeland Security Act of 2002 (Public Law 107-296) by amendment to the Inspector General Act of 1978. This is one of a series of audit, inspection, and special reports prepared as part of our oversight responsibilities to promote economy, efficiency, and effectiveness within the department. This report addresses the effectiveness of DHS' internal control over financial reporting. It is based on a review of applicable documents. We performed our review during the course of DHS' FY 2006 financial statement audit in conjunction with the independent public accountant, KPMG LLP. KPMG was engaged to audit the Department's balance sheet as of September 30,2006 and 2005, and the related statement of custodial activity for the year ended (referred to herein as "financial statements). KPMG was unable to provide an opinion on DHS' financial statements as of September 30,2006 and 2005. It is our hope that this report will result in more effective, efficient, and economical operations. We express our appreciation to all of those who contributed to the preparation of this report Inspector ...