Open Recommendations

We recommend that Coast Guard establish new, or improve existing, policies, procedures, and related internal controls to increase training and development of existing resources to better align them to financial reporting oversight roles.

We recommend that FEMA reinstitute regularly scheduled quarterly meetings with the NFIP Standards Committee to ensure there is sufficient oversight of operations at the WYO insurance companies and its service provider.

We recommend that FEMA develop and implement policies and procedures that ensure results of reviews and audits performed over WYO insurance companies are communicated to the actuary for consideration in the calculation of the insurance liability.

We recommend that CBP establish new, or improve existing policies, procedures, and internal controls to ensure subsequent events with potential financial reporting implications are identified (e.g. through development of a look-back analysis, evaluation of specific items, and/or comparison of available data sets).

We recommend that CBP enforce existing policies, procedures, and related internal controls to ensure that the review of manual journal entries is sufficiently precise to identify errors, and that the underlying information utilized in the preparation of the entries is complete and accurate.

We recommend that CBP enforce existing policies, procedures, and controls at the port level to ensure information recorded in the system of record for seized and forfeited items is complete and accurate. In addition, improve existing controls surrounding the review of financial disclosures related to seized and forfeited narcotics to ensure proper reporting.

We recommend that CBP Attract and deploy additional skilled resources and align them to financial reporting oversight roles.

We recommend that USSS establish new, or improve existing, policies, procedures, and related internal controls to ensure the adequate understanding and oversight of assumptions used in significant estimates is maintained by USSS management and continued appropriateness of those assumptions are routinely evaluated.

We recommend that USSS employ additional resources and design and implement policies and controls to track, monitor, and report the complete population of its not in evidence counterfeit note inventory, including any note processing backlog.

We recommend that DHS develop continuous monitoring and testing of IT general controls to identify weaknesses, assess the resulting risks created by any identified IT deficiencies, and respond to those risks through implementing compensating controls.

We recommend that NPPD involve financial management personnel in the procurement of contracts for NPPD's major IUS projects to ensure they are structured to facilitate isolation of costs between development, maintenance, and research and development (i.e., capitalizable vs. expensed), at an individual asset level, in order to enhance traceability of capital costs.

We recommend that NPPD design and implement controls to appropriately track asset activity at the transaction level and ensure the timely recording of asset additions, deletions, or other adjustments.

We recommend that NPPD attract and deploy additional skilled resources to support the control environment and provide the necessary financial reporting oversight.

We recommend that USSS design and implement controls and procedures to perform reconciliations between the PP&E subledger to the general ledger and reconcile all significant differences.

We recommend that USSS adhere to established inventory policies and procedures and design and implement controls to appropriately track asset activity at the transaction level and ensure the timely recording of asset additions, deletions, or other adjustments.

We recommend that DHS appropriately align knowledgeable resources to evaluate the roles of service organizations, assess controls at those service organizations, and identify and assess complimentary controls within the Components relying on those service organizations.

We recommend that USSS establish new, or improve current communication channels within the Administrative Operations Division and Financial Management Division to ensure sufficient review of personal and real property activity and balances, including equipment, IUS, land, buildings and other structures, and to verify costs are appropriate and reflect USSS's business operations during the fiscal year.

We recommend that USSS design and implement controls and processes to identify instances and criteria for asset impairment.

We recommend that USSS attract and deploy additional skilled resources within the Administrative Operations Division and Financial Management Division to support the control environment and provide the necessary financial reporting oversight.

We recommend that FEMA assign the responsibility for central oversight of grants management to one program office within FEMA.

Related to the Entry Process: We recommend that CBP fully implement the automated controls over single transaction bond processing.

Related to the Entry Process: We recommend that CBP develop policies and procedures that clearly identify risks, as well as controls to mitigate those risks for all trade functions transitioning to ACE.

Related to the Entry Process: We recommend that CBP provide training to all personnel on new policies to ensure consistent implementation at decentralized locations.

Related to Refunds and Drawbacks: We recommend that CBP continue with the scheduled implementation of drawback in ACE.

Related to Refunds and Drawbacks: We recommend that CBP continue to enhance the manual controls to detect or prevent excessive drawback claims, including after the implementation of TFTEA, as current claims will take several years to be processed through the drawback lifecycle.