U.S. Equal Employment Opportunity Commission
Office of Inspector General
Equal Employment Opportunity Commission
INDEPENDENT AUDITOR'S REPORT ON
COMPLIANCE WITH LAWS AND REGULATIONS
We audited the Consolidated Balance Sheets of the Equal Employment Opportunity Commission (EEOC) as of September 30, 2005, and 2004; the related Consolidated Statements of Net Cost, Changes in Net Position, and Financing; and the Combined Statement of Budgetary Resources for the years then ended. We have issued our report thereon dated November 2, 2005. We conducted our audits in accordance with generally accepted auditing standards; standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 01-02, Audit Requirements for Federal Financial Statements.
EEOC management is responsible for complying with laws and regulations applicable to the agency. As part of obtaining reasonable assurance about whether the agency's financial statements are free of material misstatement, we performed tests of EEOC's compliance with certain provisions of laws and regulations, noncompliance with which could have a direct and material effect on the determination of financial statement amounts, and certain other laws and regulations specified in OMB Bulletin 01-02, including requirements referred to in the Federal Financial Management Improvement Act (FFMIA) of 1996. We limited our tests of compliance to these provisions, and we did not test compliance with all laws and regulations applicable to EEOC.
The results of our tests of compliance disclosed no instances of noncompliance with other laws and regulations described in the preceding paragraph, exclusive of FFMIA, that we are required to report under Government Auditing Standards or OMB Bulletin 01-02.
Under FFMIA, we are required to report whether EEOC's financial management systems substantially comply with federal financial management system requirements, applicable federal accounting standards, and the United States Government Standard General Ledger at the transaction level. To meet this requirement, we performed tests of compliance with FFMIA Section 803 (a) requirements.
The results of our tests disclosed no instances in which EEOC's financial management systems did not substantially comply with the three requirements discussed in the preceding paragraph.
Providing an opinion on compliance with certain provisions of laws and regulations was not an objective of our audit and, accordingly, we do not express such an opinion.
COTTON & COMPANY LLP
Colette Wilson, CPA
November 2, 2005