ML22153A021
| ML22153A021 | |
| Person / Time | |
|---|---|
| Issue date: | 06/02/2022 |
| From: | Rivera E NRC/OIG/AIGA |
| To: | Spangenberg J NRC/EDO |
| References | |
| DNFSB-21-A-03 | |
| Download: ML22153A021 (6) | |
Text
NRC Headquarters l 11555 Rockville Pike l Rockville, Maryland 20852 l 301.415.5930 June 2, 2022 MEMORANDUM TO:
Joel C. Spangenberg Executive Director of Operations FROM:
Eric Rivera /RA/
Acting Assistant Inspector General for Audit
SUBJECT:
STATUS OF RECOMMENDATIONS: RESULTS OF THE AUDIT OF THE DNFSBS FINANCIAL STATEMENTS FOR FISCAL YEAR 2020 (DNFSB-21-A-03)
REFERENCE:
OFFICE OF THE GENERAL MANAGER, MEMORANDUM DATED FEBRUARY 23, 2022 Attached is the Office of the Inspector Generals (OIG) analysis and status of the recommendations discussed in the DNFSBs response dated February 23, 2022.
Based on this response, recommendations one and two remain open and resolved.
Please provide an updated status of the open and resolved recommendations by August 31, 2022.
If you have any questions or concerns, please call me at (301) 415-5915 or Terri Cooper, Team Leader, at (301) 415-5965.
Attachment:
As stated cc: J. Biggins, GM R. Howard
Audit Report RESULTS OF THE AUDIT OF THE DNFSBS FINANCIAL STATEMENTS FOR FISCAL YEAR 2020 DNFSB-21-A-03 Status of Recommendations 2
Recommendation 1:
Develop a plan to improve the financial reporting controls and process, including identifying and training back up staff, so that financial statements and the related notes are properly prepared and reviewed at interim and year-end on a timely basis.
Agency Response dated February 23, 2022:
Agree. The Division of Budget and Finance (DBF) has implemented a checklist of procedures to properly compile, prepare, review, and report their financial statements. See below for the completed checklist for Fiscal Year 2021.
Financial Reporting Procedures Date Due Date Complete POC Lead
- 1. Timely review of all financial statements As scheduled Varies CPA
- 2. Timely review and reconciliation of Fund Balance with Treasury (FBwT), Capitalized Assets, and Unfunded Leave Liability (ULL)
As scheduled N/A N/A
- 3. Account for all prior year adjustments 1/26/221 1/26/22 Shared Service Provider
- 4. Timely detection and correction of errors, including rounding and footing errors As scheduled N/A N/A
- 5. Perform all timely reconciliations As scheduled N/A N/A
- 6. Prepare and compile notes to the financial statements for the third and fourth quarters 1/31/222 1/26/22 CFO
- 7. Signatures certifying completion of the Final Agency Financial Report (AFR).
1/31/22 1/31/22 Chair
- 8. AFR released, archiving all draft versions to eliminate confusion 2/1/22 2/1/22 CPA
- 9. Network folder locations of all relevant documents 2/1/22 2/1/22 CPA
- 10. DNFSB AFR released for publication 1/31/22 1/31/22 CFO 1 Due to delay of audit, FS were approved to be published on 1/31/22 by OMB.
2 Due to delay of audit, FS were approved to be published on 1/31/22 by OMB.
Audit Report RESULTS OF THE AUDIT OF THE DNFSBS FINANCIAL STATEMENTS FOR FISCAL YEAR 2020 DNFSB-21-A-03 Status of Recommendations 3
Recommendation 1 (contd):
DBF is in the process of incorporating the checklist procedures listed above into a SOP to be used for training backup staff.
Estimated Completion Date: December 30, 2022 OIG Analysis:
The proposed actions meet the intent of the recommendation. The recommendation will be closed after the DNFSB incorporates the checklist in its standard operating procedures for training purposes.
Status:
Open: Resolved.
Audit Report RESULTS OF THE AUDIT OF THE DNFSBS FINANCIAL STATEMENTS FOR FISCAL YEAR 2020 DNFSB-21-A-03 Status of Recommendations 4
Recommendation 2:
Prepare and review all key financial statement reconciliations and resolve significant reconciling items on a monthly basis.
Agency Response Dated February 23, 2022:
Agree. DNFSB has implemented a process to ensure timely reconciliations of the key focal financial statement areas. For Fiscal Year 2022, the following reconciliations have been established:
Audit Report RESULTS OF THE AUDIT OF THE DNFSBS FINANCIAL STATEMENTS FOR FISCAL YEAR 2020 DNFSB-21-A-03 Status of Recommendations 5
Recommendation 2 (contd):
DBF Reconciling Items with USDA Frequency Lead POC
- 1. Open Items Obligations Aging Report Quarterly Financial Management Specialist
- 2. Accounting History Obligations by Service Organization Control by Sub Object Class (SOC),
Organization and Fund Quarterly Financial Management Specialist
- 3. Prior Year Recovery report Quarterly Financial Management Specialist
- 4. Payroll reports from National Finance Center (NFC), reconciled to Symplicity and to USDA Accounting History Monthly Financial Management Specialist
- 5. Standard Form 133 (SF-133) Report on Budget Execution and Budgetary Resources (not issued in October)
Quarterly Financial Management Specialist
- 6. SF-224 Fund Balance with Treasury (Payroll Abstract)
Monthly Budget Analyst
- 7. Relocation Accounting Distribution Reports (Earnings to Net Report) as issued Varies Financial Management Specialist
- 8. Review of Open Items by Fund - Undelivered Obligations (UDO) Review for possible de-obligation Monthly Financial Management Specialist
- 9. Digital Accountability and Transparency Act (DATA Act) Broker Quarterly Financial Management Specialist
- 10. Adjusted Trial Balance Quarterly Certified Public Accountant
- 11. Intra-Governmental Transactions (IGT)
Differences Report Monthly Certified Public Accountant
- 12. Open Items Obligations Aging Report Monthly Financial Management Specialist
- 13. Fund Balance with Treasury (FBwT)
Quarterly Budget Analyst
- 14. Capitalized Assets Quarterly Certified Public Accountant
- 15. Unfunded Leave Liability (ULL)
Annually Certified Public Accountant
- 16. Treasury Report on Receivables (TROR)
Quarterly Certified Public Accountant
Audit Report RESULTS OF THE AUDIT OF THE DNFSBS FINANCIAL STATEMENTS FOR FISCAL YEAR 2020 DNFSB-21-A-03 Status of Recommendations 6
Recommendation 2 (contd):
Estimated Completion Date: December 30, 2022 OIG Analysis:
The proposed action meets the intent of the recommendation. The recommendation will be closed when the DNFSB provides evidence to support implementation of the reconciliations noted above.
Status:
Open: Resolved.