AU-C 265 Management Letter | Oversight.gov

Title Full

AU-C 265 Management Letter

Date Issued

Monday, December 22, 2025

Submitting OIG

Federal Labor Relations Authority OIG

Agencies Reviewed/Investigated

Federal Labor Relations Authority

Report Number

AR-26-03

Report Description

AU-C 265 Management Letter

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

5

Questioned Costs

$0

Funds for Better Use

$0

Report updated under NDAA 5274

No

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use	Additional Details
1	No	$0	$0
Ensure a complete understanding is obtained as to what constitutes accounts payable and accrued expenses and how that is different from obligated, undelivered orders. In addition, increase the understanding of what accounts on the trial balance and line items on the financial statements are impacted by accruals.
2	No	$0	$0
Improve the existing worksheet used for accrual calculations by including contract type, services/goods received, documentation of accrual methodology and accumulate adequate support that is readily available. The spreadsheet and supporting documentation should be presented to a supervisor for review as part of the accrual review process.
3	No	$0	$0
We recommend the Administrative Services Director review all open obligations with ARC and project management personnel to verify the accuracy of all undelivered account balances.
4	No	$0	$0
We suggest FLRA revisit their existing internal control procedures for reviewing ARC services to ensure complementary customer agency controls included in the ARC SOC 1 Type 2 report have been incorporated into the internal control process.
5	No	$0	$0
We understand that this submission was only one day late and acknowledge that other submissions tested did not show late reporting. We recommend that FLRA considers unexpected events or employee absences to ensure timely filing.