oversight

Report 2003-004- FIN - INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS

Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2004-11-01.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

Inspector General
Equal Employment Opportunity Commission


        INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS

Cotton & Company LLP audited the Consolidated Balance Sheets of the Equal Employment Opportunity
Commission (EEOC) as of September 30, 2004 and 2003; the related Consolidated Statements of Net
Cost of Operations, Changes in Net Position, and Financing; and the Combined Statement of Budgetary
Resources for the years then ended, and has issued our report thereon dated November 1, 2004. We
conducted our audit in accordance with Government Auditing Standards, auditing standards generally
accepted in the United States of America, and Office of Management and Budget (OMB) Bulletin 01-02,
Audit Requirements for Federal Financial Statements.

EEOC management is responsible for complying with laws and regulations applicable to the agency. As
part of obtaining reasonable assurance about whether the agency’s financial statements are free of
material misstatement, we performed tests of EEOC’s compliance with certain provisions of laws and
regulations, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts, and certain other laws and regulations specified in OMB Bulletin 01-02,
including requirements referred to in the Federal Financial Management Improvement Act (FFMIA) of
1996. We limited our tests of compliance to these provisions, and we did not test compliance with all laws
and regulations applicable to EEOC.

The results of our tests of compliance disclosed no instances of noncompliance with other laws and
regulations described in the preceding paragraph, exclusive of FFMIA, that we are required to report
under Government Auditing Standards or OMB Bulletin 01-02.

Under FFMIA, we are required to report whether EEOC’s financial management systems substantially
comply with federal financial management system requirements, applicable federal accounting standards,
and the United States Government Standard General Ledger at the transaction level. To meet this
requirement, we performed tests of compliance with FFMIA Section 803 (a) requirements.

The results of our tests disclosed no instances in which EEOC’s financial management systems did not
substantially comply with the three requirements discussed in the preceding paragraph.

Status of Prior-Year Noncompliance

In the 2003 report on compliance with laws and regulations, we noted that EEOC was not in substantial
compliance with provisions of Statement of Federal Financial Accounting Standards No. 4, Managerial
Cost Accounting Standards, as required under FFMIA.

EEOC resolved this noncompliance in Fiscal Year 2004.
Providing an opinion on compliance with certain provisions of laws and regulations was not an objective
of our audit and, accordingly, we do not express such an opinion.

This report is intended solely for the information and use of EEOC management, OMB, and Congress. It
is not intended to be and should not be used by anyone other than these specified parties. This report is,
however, a matter of public record and its distribution is not limited.


COTTON & COMPANY LLP




Colette Wilson, CPA


November 1, 2004
Alexandria, Virginia