Equal Employment Opportunity Commission
INDEPENDENT AUDITOR'S REPORT
We audited the accompanying 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. These financial statements are the responsibility of EEOC management. Our responsibility is to express an opinion on the financial statements based on our audit.
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. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of EEOC as of September 30, 2005, and 2004, and its net costs, changes in net position, combined budgetary resources, and financing for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Certain portions of the Performance and Accountability Report are not a required part of the basic financial statements, but are required by OMB Circular A-136, Financial Reporting Requirements, and the Federal Accounting Standards Advisory Board's Statement of Federal Financial Accounting Standards No. 15, Management's Discussion and Analysis.
Two types of information within EEOC's Performance and Accountability Report are not a part of EEOC's basic financial statements: required supplementary information and other accompanying information. Management's Discussion and Analysis (MD&A) and information on EEOC's intragovernmental support revolving fund are required supplementary information. Other accompanying information consists of the full Performance and Accountability Report, except for the MD&A, revolving fund information, basic financial statements and notes to the financial statements, and this auditor's report. With respect to this information, we made certain inquiries of management and compared the information for consistency with EEOC's audited financial statements and against other knowledge we obtained during our audit. Based on these limited procedures, we found no material inconsistencies among the MD&A or other accompanying information and financial statements or notes. We did not audit required supplemental information or the other accompanying information and therefore express no opinion on them.
In accordance with Government Auditing Standards, we issued separate reports dated November 2, 2005, on EEOC's internal control and compliance with laws and regulations. Our reports on internal control and compliance are an integral part of an audit conducted in accordance with Government Auditing Standards and, in considering the results of our audits, those reports should be read together with this report.
COTTON & COMPANY LLP
Colette Wilson, CPA
November 2, 2005