CIA • 2004

REPORT OF AUDIT - THE AGENCY'S ADMINISTRATION OF TRANSACTIONS WITH OTHER GOVERNMENT AGENCIES

k Approved for Release: 2019/07/17 C06636474 -SECRET/120290548- REPORT OF AUDIT (U) The Agency's Administration of Transactions With Other Government Agencies Central Intelligence Agency Office of Inspector General Audit Staff -SEC RETH20290513- 29 October 2004 DATE ISSUED Approved for Release: 2019/07/17 C06636474 Approved for Release: 2019/07/17 C06636474 (U) Table of Contents (U) SUMMARY 1 (U) BACKGROUND 2 (U) The Economy Act 2 (U) The Agency's Process for Administering Transactions With Other Government Agencies 2 (U) Financial Statement Reporting and Accounting Standards 4 (U) Implementation of a New Accounting Model for Recording Transactions With Other Government Agencies in FY 2004 5 (U) AUDIT RESULTS AND RECOMMENDATIONS 5 (U/Tet:10-)- Amounts Reported for the Agency's Transactions With Other Government Agencies Are Not Fairly Presented on the FY 2003 Financial Statements 5 (U/LE0t142)- Transactions Are Not Reported on an Accrual Accounting Basis 5 (U/iFetie)- Financial Activities of Other Entities Are Included Inappropriately on the Agency's Financial Statements 7 (U/WOU0) (UMF-600)- Reconciliations With Other Government Agencies Are Not Being Conducted 9 9 (111/Fiatie)- Transactions in Certain General Ledger Accounts Are Improperly Reported as Intragovernmental on the FY 2003 Financial Statements 10 (Ulli-G14e)- The Agency Is Not in Compliance With Office of Management and Budget Requirements for Financial Statement Presentation of Intragovernmental Activity 13 -SEGRET-11202906-1-8- Approved for Release: 2019/07/17 C06636474 Approved for Release: 2019/07/17 C06636474 -sEcRE-Tn202905-18- (UHFet:M) Transactions With Other Government Agencies Are Not Properly Segregated on the Statement of Net Cost 13 (U/iFel:M) Disclosures in the FY 2003 Financial Statements Are Not Accurate or Complete 15 (U) Other Matters 16 (U) Objectives, Scope, and Methodology Exhibit A -(8)- FY 2003 Balance Sheet, Statement of Net Cost, and Related Notes to the Financial Statements (Draft, dated December 2003) Exhibit B (U) List of Recommendations Exhibit C (U) Audit Team Members Exhibit D -SE0RE-T1120290518- Approved for Release: 2019/07/17 C06636474 Approved for Release: 2019/07/17 C06636474 -SteREfft2029051-8- Report of Audit (U) The Agency's Administration of Transactions With Other Government Agencies (U) SUMMARY (U) The objectives of this audit were to determine whether: � The financial statements of the CIA fairly present the amounts associated with goods and services ordered from and provided to other government agencies (OGAs), in accordance with generally accepted accounting principles. � Internal controls related to recording goods and services ordered from and provided to OGAs are adequate to detect or prevent errors or misstatements that have a material effect on the financial statements. � The Agency complies with laws and regulations that have an effect on the financial statement presentation for transactions involving OGAs...