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Report File
Date Issued
Submitting OIG
Department of Homeland Security OIG
Other Participating OIGs
Department of Homeland Security OIG
Agencies Reviewed/Investigated
Department of Homeland Security
Components
Management Directorate (Management)
Report Number
OIG-21-08
Report Description

KPMG issued an unmodified (clean) opinion on the financial statements, reporting that they present fairly, in all material respects, DHS’ financial position as of September 30, 2020. However, KPMG identified material weaknesses in internal control in two areas and other significant deficiencies in three areas. Consequently, KPMG issued an adverse opinion on DHS’ internal control over financial reporting. KPMG also reported three instances of noncompliance with laws and regulations. DHS concurred with all of the recommendations.

Report Type
Audit
Number of Recommendations
29

Open Recommendations

This report has 13 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
3 No $0 $0

Office of the Chief Financial Officer (OCFO), in coordination with the Office of the Chief Information Officer (OCIO), the Office of the Chief Information Security Officer (OCISO), and component IT and financialmanagement, design and implement an effective internal control process to review service organization risks to ensure that ineffective ITGCs performed by service organizations are evaluated and appropriate compensating controls are designed and implemented by DHS and component management

11 No $0 $0

Improve or reinforce existing policies, procedures, and related internal controls over financial information, including preparation of the Agency Financial Report.

14 No $0 $0

Update policies and procedures to clearly define how the review of refund liquidations and administrative refunds is achieved.

16 No $0 $0

Finalize the Drawback Handbook to document designed control activities over TFTEA drawback claims.

17 No $0 $0

Complete a robust risk assessment related to TFTEA drawback claims

18 No $0 $0

Update policies and procedures to clearly define how the review of accelerated payments and drawback liquidations is achieved.

19 No $0 $0

Track and monitor the progress made in liquidating legacy drawback claims to support timely liquidation in accordance with the requirements of CFR 191

21 No $0 $0

Enhance the destruction module in the system of record;

22 No $0 $0

Design and implement a control to mitigate the risk of inaccurate updates to property records after initial seizure.

24 No $0 $0

Provide training and enforce accountability for adherence to policies and procedures

25 No $0 $0

Design and implement controls over grant obligations for the lost wages assistance program to ensure compliance with the Presidential Memorandum.

26 No $0 $0

Develop new policies, or improve and reinforce existing policies, procedures, and related internal controls, that:a. the underlying data to actuarially derived estimates is reviewed timely;b. information derived from the systems used in the operations of controls is determined to be complete and accurate;c. risks related to the methods, models, assumptions, and data elements are assessed each year to identify, plan, and respond to changes; andd. changes to the methods, models, assumptions, and data elements are sufficiently documented.

27 No $0 $0

Design and implement controls to ensure compliance with the Presidential Memorandum

Department of Homeland Security OIG

United States