Federal Reports

OMB Circular A-136, Financial Reporting Requirements, requires that the Inspector General provide the agency head with a summary of the top management and performance challenges facing the agency. After careful analysis, it is our assessment that the areas of Financial Management, Human Capital, Information Technology, and Grantee Accountability represent the top management and performance challenges for NEA.

For FY 2014, both the Department and FSA received an unmodified (clean) opinion on their financial statements; however, the financial statement auditors identified one significant deficiency in internal control over financial reporting and one instance of reportable noncompliance. The significant deficiency involved information technology controls over security management, personnel security, access controls, and configuration management, which can increase the risk of unauthorized access to the Department’s systems used to capture, process, and report financial transactions and balances, affecting the reliability and security of the data and information. The instance of noncompliance involved a provision of the Debt Collection Improvement Act of 1996, as amended by the Digital Accountability and Transparency Act of 2014, that requires Federal agencies to notify the Secretary of the Treasury of debts that are over 120 days past due.

For FY 2014, both the Department and FSA received an unmodified (clean) opinion on their financial statements; however, the financial statement auditors identified one significant deficiency in internal control over financial reporting and one instance of reportable noncompliance. The significant deficiency involved information technology controls over security management, personnel security, access controls, and configuration management, which can increase the risk of unauthorized access to the Department’s systems used to capture, process, and report financial transactions and balances, affecting the reliability and security of the data and information. The instance of noncompliance involved a provision of the Debt Collection Improvement Act of 1996, as amended by the Digital Accountability and Transparency Act of 2014, that requires Federal agencies to notify the Secretary of the Treasury of debts that are over 120 days past due.