Report on the Audit of the Public Health Service, Service and Supply Fund for Fiscal Year 1995, A-17-95-00053

Off Ice of Inspector General DEPARTMENT OF HEALTH& HUMAN SERVICESMemorandumAUG 2719% June Gibbs Brown ./+wJ8&Inspector Gener Report on the =of the Public Health Service, Service and Supply Fund for Fiscal Year 1995 (A-17-95-OO053) Philip R. Lee, M.D. Assistant Secretary for Health . The attached report presents the results of audit by the certified public accounting fii Clifton, Gunderson and Company (CG) in its examination of the Public Health Service, Service and Supply Fund (Fund) fmcial statements for the fiscal years (FY) ended September 30, 1995 and 1994. The Office of Inspector General exercised technical oversight and quality control of the audit. We engaged CG to audit the financial statements and to express an opinion on them. The fm issued a “qualified” opinion on the Fund f~cial statements because of the omission of (1) a statement of cash flows; and (2) a statement of budget and actual expenses. These statements were omitted because the Office of Management and Budget (OMB) granted a govemmentwide waiver for presenting them. The waiver, however, does not take precedence over the basic requirement (specified in OMB Bulletin 94-01 and mandated by Government Auditing Standards issued by the Comptroller General) that agencies include these among ‘their financial statements. Accordingly, CG determined that except for the omission of the cash flow and budget statements, the financial statements present fairly, in all material respects, ...