+ All Categories
Home > Documents > AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother...

AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother...

Date post: 23-Jul-2020
Category:
Upload: others
View: 4 times
Download: 0 times
Share this document with a friend
9
Audit Audit of of the the Broadcasting Broadcasting Board Board of of Governors' Governors' Financial Financial Statements Statements September September 30, 30, 2007 2007 and and 2006 2006 Independent Independent Auditor's Auditor's Report Report AUD/FM-08-07 AUD/FM-08-07 Leonard Leonard G. G. Birnbaum Birnbaum and and Company, Company, LLP LLP Certified Certified Public Public Accountants Accountants 6285 6285 Franconia Franconia Road Road Alexandria, Alexandria, Virginia Virginia 22310 22310 (703) (703) 922-7622 922-7622
Transcript
Page 1: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

AuditAudit ofof thethe Broadcasting Broadcasting BoardBoard ofof Governors'Governors'

Financial Financial StatementsStatements

SeptemberSeptember 30,30, 20072007 andand 20062006

IndependentIndependent Auditor'sAuditor's ReportReport

AUD/FM-08-07AUD/FM-08-07

LeonardLeonard G.G. BirnbaumBirnbaum and and Company, Company, LLP LLPCertifiedCertified Public Public AccountantsAccountants

62856285 Franconia Franconia RoadRoad Alexandria,Alexandria, VirginiaVirginia 2231022310

(703) (703) 922-7622922-7622

Page 2: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

LEONARDLEONARD G. G. BIRNBAUM BIRNBAUM ANDAND COMPANY,COMPANY, LLP LLP

CERTIFIEDCERTIFIED PUBLICPUBLIC ACCOUNTANTSACCOUNTANTS WASHINGTONWASHINGTON OFFICEOFFICE

6285 6285 FRANCONIAFRANCONIA ROADROAD

ALEXANDRIA ALEXANDRIA, , VAVA 22310-251022310-2510

(703)(703) 922-7622 922-7622

FAXFAX: : (703)(703) 922-8256922-8256

WASHINGTON , D.C .LESLIE LESLIE AA. . LEIPER WASHINGTON, D.C. LEIPER

SUMMIT.LEONARDLEONARD G. G. BIRNBAUM SUMMIT, NEWNEW JERSEYJERSEY BIRNBAUM

REDWOODREDWOOD CITYCITY, , CALIFORNIACALIFORNIA DAVID DAVID SAKOFS SAKOFS

CAROLCAROL A.A. SCHNEIDERSCHNEIDER

DORADORA M. M . CLARKECLARKE

INDEPENDENT INDEPENDENT AUDITOR'SAUDITOR'S REPORT REPORT

ToTo the the Chairman ChairmanBroadcasting Broadcasting Board Board ofof Governors Governors

We We have have audited audited the the Broadcasting Broadcasting Board Board ofof Governors' Governors' (BBG) (BBG) Balance Balance Sheet, Sheet, Statement Statementofof NetNet Cost, Cost, Statement Statement ofof Changes Changes in in Net Net Position, Position, and and Statement Statement ofof Budgetary BudgetaryResources Resources (Annual(Annual Financial Financial Statements)Statements) as as of,of, andand forfor the the yearsyears ended,ended, September September 30, 30,2007 2007 and and 2006; 2006; we we considered considered internal internal control control overover financial financial reporting reporting in in placeplace asas ofof September September 30,2007,30,2007, andand for for thethe yearyear thenthen ended; ended; and and we we tested tested compliance compliance with with selected selectedlaws laws and and regulations. regulations.

In In our our opinion, opinion, BBG's BBG's 2007 2007 and and 2006 2006 annual annual financial financial statements statements are are presented presented fairly fairly inin all all material material respects. respects.

We We found: found:

• • significant significant deficiencies deficiencies in in internal internal control, control, and and

• • an an instance instance of of noncompliance noncompliance with with selected selected provisions provisions ofof applicable applicable laws laws and andregulations. regulations.

Each Each ofof these these conclusions conclusions isis discusseddiscussed in in more more detail detail on on the the following following pages.pages. ThisThis report reportalso also discussesdiscusses the the scope scope ofof our our work.work.

ANNUAL ANNUAL FINANCIAL FINANCIAL STATEMENTSSTATEMENTS

In In our our opinion,opinion, BBG's BBG's annual annual financialfinancial statements, statements, includingincluding the the notes notes thereto, thereto, present presentfairly, fairly, in in all all material material respects, respects, BBG's BBG's financial financial position position asas ofof September September 30,2007 30, 2007 and and2006, 2006, and and its its netnet costcost ofof operations, operations, changes changes in in net net position, position, and and use use ofof budgetary budgetaryresourcesresources for for thethe years years then then ended, ended, in in conformityconformity with with accountingaccounting principlesprinciples generallygenerally acceptedaccepted in in the the United United States States ofof America. America.

MEM BERS AM ERI CAN CERT IFI ED AC COUNTANTSMEMBERS OFOF THETHE AMERICAN INSTITUTEINSTITUTE OFOF CERTIFIED PUBLICPUBLIC ACCOUNTANTS

Page 3: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

INTERNAL INTERNAL CONTROLCONTROL

In In planning planning andand performingperforming ourour audits audits ofBBG'sofBBG's annual annual financialfinancial statements statements as as of, of, and andfor for the the years years ended, ended, September September 30,2007 30, 2007 and and 2006, 2006, in in accordance accordance with with auditing auditing standards standardsgenerally generally accepted accepted in in the the United United States States ofof America, America, we we considered considered BBG BBG's 's internalinternal controlcontrol overover financialfinancial reportingreporting asas aa basisbasis for for designingdesigning ourour auditingauditing procedures procedures for for the thepurpose purpose of of expressing expressing our our opinionopinion on on thethe annualannual financial financial statements statements but but not not for for thethe purpose purpose ofof expressing expressing an an opinion opinion on on thethe effectiveness effectiveness ofBBG's ofBBG's internalinternal control.control. AccordinglyAccordingly, , we we do do not not express express an an opinion opinion on on the the effectiveness effectiveness of ofBBG's BBG's internal internalcontrol. control. We We limited limited ourour considerationconsideration ofof internal internal control control toto thosethose controls controls necessary necessary to toachieve achieve the the objectives objectives described described in in Office Office ofof Management Management and and Budget Budget (OMB) (OMB) Bulletin Bulletin07-04,07-04, AuditAudit RequirementsforRequirementsfor FederalFederal FinancialFinancial Statements.Statements. We We did did not not consider consider allall internalinternal controlscontrols relevantrelevant toto operatingoperating objectivesobjectives as as broadlybroadly defined defined byby thethe Federal FederalManagers' Managers' FinancialFinancial Integrity Integrity Act Act ofof 1982 1982 (FMFIA), (FMFIA), such such as as those those controls controls relevant relevant to toensuringensuring efficient efficient operations. operations. The The objective objective ofof our our audit audit was was not not to to provide provide assurance assurance on oninternal internal control. control. Consequently, Consequently, wewe dodo not not express express anan opinion opinion on on internal internal control. control.

The The purpose purpose ofof internal internal control control isis to to provide provide management management withwith reasonablereasonable, , butbut not notabsolute,absolute, assuranceassurance thatthat thethe following following objectivesobjectives areare met: met:

•• transactionstransactions areare properly properly recorded recorded andand accountedaccounted forfor toto permitpermit the the preparationpreparation ofof reliable reliable financial financial reports reports and and toto maintainmaintain accountability accountability over over assets; assets;

• • funds, funds, property, property, and and other other assets assets are are safeguarded safeguarded against against loss loss from fromunauthorized unauthorized acquisition, acquisition, use, use, or or disposition; disposition;

• • transactions, transactions, including including those those related related to to obligations obligations and and costs, costs, are are executed executed in incompliance compliance with with laws laws and and regulations regulations that that could could havehave a a direct direct and and material materialeffect effect on on the the financial financial statements statements and and other other laws laws and and regulations regulations that that OMB, OMB,BBG BBG management, management, or or the the Office Office ofof Inspector Inspector GeneralGeneral hashas identifiedidentified asas being beingsignificant significant for for which which compliance compliance can can be be objectively objectively measured measured and and evaluated; evaluated;and and

• • data data that that support support reported reported performance performance measuresmeasures areare properlyproperly recordedrecorded aand ndaccountedaccounted for for toto permitpermit preparationpreparation ofof reliable reliable and and completecomplete performance performanceinformation. information,

Our Our consideration consideration ofof the the internal internal control control overover financial financial reportingreporting wouldwould not not necessarilynecessarily identify identify allall deficienciesdeficiencies in in internalinternal controlcontrol thatthat might might bebe significantsignificant deficiencies deficiencies or ormaterial material weaknesses. weaknesses. However, However, asas discusseddiscussed belowbelow, , wewe identifiedidentified certaincertain deficienciesdeficiencies inin internalinternal controlcontrol thatthat wewe considerconsider to to bebe significantsignificant deficiencies.deficiencies.

AA controlcontrol deficiencydeficiency existsexists whenwhen thethe designdesign oror operationoperation ofof aa controlcontrol doesdoes notnot allowallow managementmanagement or or employees, employees, in in thethe normalnormal course course ofof performingperforming theirtheir assigned assigned functions, functions ,

2 2

Page 4: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

to to preventprevent or or detect detect misstatements misstatements on on a a timely timely basis. basis . A A significant significant deficiency deficiency is is aa controlcontrol deficiency,deficiency, or or combinationcombination ofof control control deficiencies, deficiencies, that that adversely adversely affects affects the the entity's entity'sability ability to to initiateinitiate, , authorizeauthorize, , record, record, process, process, oror reportreport financial financial datadata reliablyreliably inin accordanceaccordance withwith generallygenerally acceptedaccepted accountingaccounting principles principles suchsuch that that there there isis more more thanthan aa remote remote likelihoodlikelihood thatthat aa misstatementmisstatement ofof the the entity'sentity's financialfinancial statements statements thatthat is is moremore than than inconsequential inconsequential will will not not be be prevented prevented or or detected. detected .

We We notednoted twotwo matters matters involving involving internal internal control control that that we we consider consider toto bebe significant significantdeficiencies: deficiencies:

• • BBG'sBBG's internal internal control control over over its its financial financial and and accountingaccounting system system asas ofof September September 30,2007,30,2007, waswas inadequate. inadequate. ThereThere isis aa riskrisk ofof materially materially misstatingmisstatingfinancial financial informationinformation under under the the current current conditions. conditions. The The principal principal areas areas ofof inadequacy inadequacy werewere asas follows: follows:

• • certain certain elements elements ofof the the financial financial statements, statements, principallyprincipally propertyproperty, , plant,plant, and and equipment,equipment, areare developeddeveloped fromfrom sourcessources otherother thanthan the the generalgeneral ledger.ledger. The The useuse ofof sources sources other other than than the the generalgeneral ledgerledger toto generategenerate elementselements ofof the the financial financial statements statements increases increases the the potential potential for for omissionomission ofof significant significanttransactions.transactions.

•• BBG BBG has has not not fullyfully codifiedcodified its its financialfinancial management management operating operatingprocedures. procedures. The The absenceabsence ofof codified codified operating operating proceduresprocedures presentspresents opportunities opportunities for for inconsistencies inconsistencies and and errors errors in in processing processing financial financialtransactions.transactions.

This This condition condition was was cited cited in in our our audit audit ofBBG'sofBBG's Balance Balance Sheet Sheet asas ofof September September 30, 30,2004, 2004, and and in in subsequent subsequent audits. audits.

• • During During FY FY 2007, 2007 , BBG BBG did did not not maintain maintain adequate adequate internal internal control control over overaccounts accounts payable. payable. Initial Initial audit audit testing testing indicated indicated that that the the amount amount presented presented as asaccounts accounts payable payable was was misstated misstated by by approximately approximately 4242 percent. percent. Although Although BBG BBGundertook undertook an an initiativeinitiative to to identify identify andand resolve resolve misstatements misstatements inin accountsaccounts payable, payable, thethe reconciliationreconciliation hadhad not not beenbeen completedcompleted byby SeptemberSeptember 3030, ,20072007. .

ThisThis conditioncondition waswas citedcited inin ourour auditaudit ofBBG'sofBBG's annual annual financial financial statements statements asas ofof September September 30, 30, 2006. 2006.

We We are are required required to to review review BBG'sBBG's current current FMFIA FMFIA report report andand disclose disclose differencesdifferences withwith thethe materialmaterial weaknesses weaknesses citedcited in in our our report. report. We We did did not not identify identify any any discrepancies. discrepancies .

Finally, Finally, with with respect respect to to internal internal control control related related toto performanoe performanoe measures, measures , we we obtained obtained aan nunderstanding, understanding, as as required required by by OMB OMB Bulletin Bulletin 07-04, 07-04, of of the the design design ofof significant significant controls controlsrelating relating to to the the existence existence and and completeness completeness assertions assertions and and determined determined whether whether those thosecontrols controls hadhad beenbeen placed placed in in operation. operation. Our Our proceduresprocedures werewere notnot designeddesigned toto provprovide ide

33

Page 5: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

assurance assurance onon internal internal control control over over reported reported performance performance measures, measures, and and accordingly, accordingly, wewe dodo not not provideprovide anan opinion opinion on on suchsuch controls controls. .

We We noted noted certaincertain otherother internal internal control control issues issues that that we we have have reported reported to to BBG BBG management managementin in a a separate separate letter letter dated dated November November 14,2007. 14,2007.

COMPLIANCECOMPLIANCE WITH WITH LAWSLAWS ANDAND REGULATIONSREGULATIONS

BBGBBG management management isis responsible responsible forfor complyingcomplying withwith laws laws andand regulations regulations applicableapplicable toto BBG. BBG. AsAs part part of of obtaining obtaining reasonable reasonable assurance assurance asas to to whether whether the the annualannual financialfinancialstatementsstatements areare free free ofof material material misstatement, misstatement, we we performed performed tests tests ofBBG's ofBBG's compliancecompliance with with certain certain provisions provisions ofof laws laws and and regulations, regulations, noncompliance noncompliance withwith which which could could have have aa direct direct andand materialmaterial effect effect onon thethe determination determination of of financial financial statement statement amounts,amounts, and andcertaincertain otherother lawslaws and and regulations regulations specifiedspecified inin OMBOMB BulletinBulletin 07-04.07-04. WeWe limitedlimited ourour teststests ofof compliance compliance toto these these provisions, provisions, andand wewe diddid notnot testtest compliancecompliance with with allall lawslaws andand regulationsregulations applicableapplicable toto BBG.BBG. TheThe objectiveobjective of of our our audit audit ofof the the annualannual financial financialstatements, statements, including including our our tests tests ofof compliance compliance with with provisionsprovisions ofof selected selected lawslaws and andregulations, regulations,was was not not to to provide provide anan opinionopinion on on overall overall compliancecompliance withwith suchsuch provisions.provisions. AccordinglyAccordingly, , wewe dodo not not express express suchsuch an an opinion. opinion.

Material Material instances instances ofof noncompliance noncompliance areare failures failures toto followfollow requirementsrequirements oror violationsviolations ofof prohibitionsprohibitions in in statutesstatutes and and regulations regulations that that causecause us us to to concludeconclude that that thethe aggregation aggregation ofof the the misstatements misstatements resulting resulting from from those those failures failures or or violationsviolations is is material material to to the the financial financialstatements statements or or that that sensitivity sensitivity warrants warrants disclosure disclosure thereof. thereof.

The The results results ofof our our tests tests of of compliance compliance with with thethe laws laws andand regulations regulations describeddescribed aboabove vediscloseddisclosed thethe following following instanceinstance of of noncompliance noncompliance with with laws laws and and regulations regulations that that are arerequired required to to be be reported reported under under GovernmentGovernment AuditingAuditing StandardsStandards, , issued issued byby the the ComptrollerComptroller General General ofof the the United United States, States , andand OMBOMB Bulletin Bulletin 07-04.07-04.

We We found found thatthat BBG's BBG's financial financial management management systemsystem diddid not not complycomply withwith OMBOMB CircularCircular A-123 A-123, , ManagManagement ement AccountabilityAccountability andand Control.Control. TheThe circularcircular requiresrequires thatthatdocumentationdocumentation for for management management controls controls be be clear clear and and readily readily available available for for examination. examination.The The absence absence ofof fully fully codifiedcodified financialfinancial management management proceduresprocedures fails fails toto meetmeet this thisobjective. objective.

TheThe above above noncompliance noncompliance was was cited cited in in our our audit audit ofBBG'sofBBG's Balance Balance Sheet Sheet as as ofof September September 3030, , 2004,2004, andand in in subsequentsubsequent audits.audits. TheThe resultsresults ofof our our tests tests ofof compliancecompliancewithwith otherother lawslaws andand regulationsregulations discloseddisclosed nono materialmaterial instancesinstances ofof noncompliance. noncompliance.

RESPONSlBILITIES RESPONSIBILITIES ANDAND METHODOLOGYMETHODOLOGY

BBG BBG management management is is responsibleresponsible for: for:

4 4

Page 6: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

•� • preparingpreparing thethe annualannual financialfinancial statements,statements, requiredrequired supplementarysupplementary information, information, and and other other accompanying accompanying information information in in conformity conformity with withaccounting accounting principles principles generally generally accepted accepted in in the the United United States States ofof America; America;

••� establishing establishing andand maintainingmaintaining effective effective internal internal control; control; and and

•� • complying complying with with applicable applicable laws laws and and regulations. regulations.

Our Our responsibility responsibility is is to to express express an an opinion opinion on on the the annual annual financial financial statements statements based based on onour our audits. audits. Auditing Auditing standards standards generally generally accepted accepted in in the the United United States States ofof America America require requirethat that we we plan plan and and perform perform thethe audits audits to to obtainobtain reasonablereasonable assuranceassurance asas to to whether whether thethe annualannual financialfinancial statements statements are are free free ofof material material misrepresentationmisrepresentation andand areare presentedpresented fairly fairlyinin accordance accordance withwith accountingaccounting principlesprinciples generallygenerally acceptedaccepted inin thethe United United StatesStates ofof AmericaAmerica. . WeWe consideredconsidered BBG's BBG's internal internal controlcontrol for for the the purpose purpose ofof expressing expressing ourouropinionopinion on on the the annual annual financial financial statements statements and and not not to to provide provide an an opinion opinion on on internal internalcontrol. control. We We are are also also responsible responsible for for testing testing compliance compliance with with provisions provisions ofof selected selected laws lawsand and regulations regulations that that may may materially materially affectaffect the the annual annual financial financial statements. statements.

In In orderorder to to fulfillfulfill thesethese responsibilities,responsibilities, we:we:

.•. • examined,examined, on on a a test test basis, basis, evidence evidence supporting supporting the the amountsamounts onon thethe annualannual financial financial statementsstatements and and relatedrelated disclosures;disclosures;

••� assessedassessed the the accounting accounting principles principles used used and and significant significant estimatesestimates mademade byby management; management;

••� evaluated evaluated thethe overalloverall presentationpresentation ofof the the annualannual financial financial statements; statements;

•� • obtained obtained anan understandingunderstanding ofof the the internal internal controls controls over over financial financial reporting reporting by byobtaining obtaining an an understandingunderstanding of ofBBG's BBG's internal internal control, control, determineddetermined whether whetherinternalinternal controlscontrols hadhad beenbeen placed placed inin operation,operation, assessedassessed controlcontrol risk,risk, andand performedperformed teststests ofof controls; controls;

••� .·obtained obtained anan understandingunderstanding ofof the the internal internal controls controls relevantrelevant toto performance performancemeasures measures included included in in Management's Management's Discussion Discussion and and Analysis,Analysis, including includingobtaining obtaining an an understandingunderstanding ofof the the design design ofof internal internal controlscontrols relating relating to to the theexistence existence and and completeness completeness assertions assertions and and determiningdetermining whetherwhether theythey hadhad beenbeen placed placed in in operation;operation;

••� testedtested compliancecompliance withwith provisionsprovisions ofof selectedselected lawslaws andand regulationsregulations thatthat maymay havehave a a direct direct andand material material effect effect onon thethe AnnualAnnual Financial Financial Statements;Statements;

••� obtainedobtained written written representations representations from from management;management; andand

••� performedperformed otherother procedures procedures asas we we consideredconsidered necessary necessary underunder thethe circumstances.circumstances.

55

Page 7: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

Our Our audits audits werewere conductedconducted in in accordanceaccordance withwith auditingauditing standardsstandards generally generally acceptedaccepted in inthethe UnitedUnited StatesStates ofof America, America, the the standards standards applicable applicable toto financial financial auditsaudits containedcontained in inGovernmentGovernment Auditing Auditing Standards, Standards, and and OMBOMB BulletinBulletin 07-04.07-04. WeWe believebelieve thatthat ourour auditsauditsprovidedprovided aa reasonable reasonable basis basis for for our our opinions.opinions.

TheThe Management'sManagement's Discussion Discussion andand AnalysisAnalysis andand Required Required SupplementarySupplementary Information Informationareare supplementarysupplementary informationinformation requiredrequired byby OMB OMB CircularCircular A-136, A-136, FinancialFinancial ReportingReporting Requirements, Requirements, and and the the FederalFederal AccountingAccounting StandardsStandards Advisory Advisory Board.Board. WeWe havehave appliedapplied certaincertain limitedlimited procedures,procedures, which which consistedconsisted principallyprincipally of of inquiries inquiries ofof management managementregarding regarding thethe methods methods ofof measurement measurement and and presentationpresentation ofof the the supplementary supplementaryinformation.information. However, However, wewe did did notnot auditaudit thethe informationinformation andand expressexpress no no opinionopinion onon it. it.

ThisThis report report isis intended intended solelysolely for for thethe information information and and use use ofof BBG'sBBG's management, management, the theInspector Inspector General General of of the the U.SU.S. . Department Department ofof State State andand Broadcasting Broadcasting Board Board ofof Governors, Governors,OMB, OMB, thethe Department Department ofof the the Treasury,Treasury, and and Congress Congress andand isis not not intendedintended to to bebe andand shouldshould not not be be used used byby anyone anyone otherother thanthan thosethose specifiedspecified parties.parties. ThisThis restrictionrestriction isis not not intendedintended to to limit limit thethe distribution distribution ofof this this report, report, whichwhich is is aa matter matter ofof publicpublic record. record.

Comments Comments by by BBG BBG management management onon thisthis reportreport are are presented presented as as Appendix Appendix A.A. TheThe writtenwritten response response byby BBGBBG managementmanagement toto thethe significantsignificant deficienciesdeficiencies identifiedidentified in in ourour auditaudit has has not not beenbeen subjectedsubjected to to thethe auditingauditing procedures procedures appliedapplied inin thethe auditaudit ofof the thefinancial financial statements,statements, andand accordingly,accordingly, wewe do do not not express express anan opinionopinion on on thesethese comments. comments.

L c \.. "'\(..)

\ ~ Of ~ ~. . ~~"Y-~~~ ~\

Leonard G. Birnbaum and Company;\LLP

Alexandria, Alexandria, Virginia VirginiaNovember November 14, 14, 2007 2007

66�

Page 8: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

£1PPENDIX i\

lHW.\.DC/L"""ffNG lHW.\DC:1....,f1NG BOARH BOA1·m OF OF GOVElmOHS COVlmJ'JOJ{sUOKn"ED I': n 1;;n STi\TK"" STATE,'" OF OF A:'.IFlHCA.\I EWCA..\

:---J ()v t:rn b~' r ! 5 ~ ~007

I'r,',; lhc H'.'lW;"<lhit: !-+ '1)( ';<lb\(: fJ,~wmdIIo ward J. J, Kwng:l:'d Knmp:1:'dJInspn;;pc,;lor ccior (;c:)"''I";1I C,c:wr:dOOft!t:<.! ffice ,)f of IInm:spp<.!C ecLor to r (lc('\.':lnal l..:- ral

D<":P:IMTnI.'r\1 Department of ')f St. S I:l\;:t<:

\'."a';hinl,itoD \'\'a~;hjl\gt(l:l D,C'. D.C. :::O<;22:.0<;2:'.·O,1fJR ·031 J:-I

Th Thj~.i-, i, i j in i n n:"r"'Hl"C rl. ~ ~",ptH1 S e [0 to your vour reqrcql.:<;$\ uest (fof' 4vH' CCnJlllrJl!m~;n n 1H1t:"lH S (JI) on tll'';-t he :cport re port ,A >1U{>-/,)'{·(./,'j·fr, [ fI ) ..j·] { ··o/'j- rr :, .Amla ;{udit o/rhi' {: ~/ rhi'

HI l.Jr"'<HJdcCH1UJg huka,,·:itJ.~,t fflt",rd jr/~ ..rs ! <il { Jl ljtA'cnPI~\'tJ~I..I~<crl1")J : \· 201') }Of) 7 7' tIlid and ?iJu6 20U6 lJlJri'KJp~l!ri 1u-'.I!lO! FinancialFhhHlciul Srart:JN,,t...;'a:(~n : c ; nUIi J J;

''1 1illS hi s i" t:, th.: th<o' ftt'Urih ourth yeay<:,lf r [hI: the BBC) B BG !l;L'i has pn:p;;n:d prepared fifinanci:J! na nci al sl;:1cmems. sb1l:ll1emS, and an d the the k'urth fo urth ;:udi: :n:di : 1h;jtll;][ l the the Bnn< B{ ii h"hd:'> .,. l;:lwlderg<ll1C lkrg(lllC ThTh~'o: ifJj~T".:n(!~J;::3im k'pl:n,!cJ:: audidltt film linn has has issuedixsuc d anan un,;I:;I!Jlicuu uqua li tied ("ch.:rf~t:k<lli"llll''j "pillion« pinion onon BB(i·~.Bf.K;·~:

prpnncipuJ m cipul filina1H:inancia..tl l st:etlcme1llS sttth:nlcnts .

,·\dll<:\'Ing \ d li<: \' ing ;t:l ; ~: l lIn<;u::ltificd llJ)(;U:'l i i fi ,' d opi o piu;iml ion Ol! , )11 its its financial flllur:ciaJ ~l.t\,'mcnlss tatements :<; is ii n signilk:ml sigui ficanr achievemenachicv{':ncl:l. t. 'nli:, This '\\~l:;\ \~::;

;l,;;~o:nrlish;.:d; l ': ~' o :np ! i s lh; d underun der a a [ig.h: iie h: vcy,'ar-<;ntJ ur-cnd l"lt,:lo~.i:'l~o:.i:u.: scheJuh: sch edul e .. - thtil..: e ;lJgCl\t.;y 'Ilene . :,:,j"".~,!dns.~ , ! ih il~, FFY Y :co~OO'!cr,' h00l..s books ..on n()\:'t)b'.:f (J..:1ob'.:r 2'>1l :r.u \\\'t;Vo; wouldw""d.] ' like I ik~ [0 to ec:-.prc"s xpress omlr m ~;apprt;ciao()11 l' pn:ci al!o l1 (\0 tr. )'OllT you r ,,(a~lafffr and :md [n tn lIn: the auiludit d it firm, finn . l..:tmmd Leonard (,(,B:rnlxmm Bi rnb::um a<t:llJ :ld C"'l'npuny, C ompany, Lt.P" LU'. enr to r the the profcs~:H)nalpro fcssion»l and <md coopn)l)p~ra!ivcerative no::mn<:1' : ;m ncr in in wh\\hkh ic h IlIh·.; l': :wdll uud it was\\'2:.

C":lt!ClH utuctUC{ctL eil .

J j :;.(; r:t: :uh.li;nd,< !.: f'CP(,;'t report n noll':; () il":::; 0;1<: O ~ ll~ 1'cp,)11abk re port a ble cundiuon candlt10n n:g:,lrdii:,,' n; g:l:d i~ : t.~ Ill" tltt: ;j,g<:IlC~,a}.r':· nc,y·~; ';; internaill(\:m;ll l ,.I,mlml" c.o n tro ls 0\'(;1' ove r iit:> ts rh.: the

1\'"llilul~<.:iali n :ll\c ia ! ,and tZld aO:':l.1llnlitl~~' '''' ': ll lll 'il i n ~: syste:;l"1t~m.m . InIn adJilion. addition. lb<: the alludil ud it WP\l1t w l'0n llUllC,16 [C5 thal. that. ",hilt-\\ hi k [he the iinfif1<JlH::.tl ' JlH: :.d ,,>';:':t:m ,;y;;tcm isisIll" fully fully L'ompjilu'.l c o rupl iu r. t ..Wilh vi lh th,:, [h<:' 1J/jlldgeli<!g el .. anc,md ! .·Ac,'<iWlIingk'IYillllling Pr/'r",nlurc.\occdurcsA.'leic: oofj !95fJ, J95fJ, OMBO MB CixuI:JrC irtcu1:l r:\>\.! · I 27.27. F Flli~"11jn:.:n ..cfo/ -f(1l }. : 1. tCl'lt'.~t·ni·eJt!.").tan".i~e tr:C':!l ! --') Jstt:.t't;,Lti.·n-iS. aaDd nd ();vl() i\:lBnC'i:cuhtrClrcula r 1\'i\ 4i~ 23 2J. . ~ ..\fi)nt{f!~nH\ {~ 'nl1.'(g(~/H<:nt..nf ..1cc(Jul'itahi!i!.~l cc tJ unt<::h ili!,t (fIH) ({1:U} Con( 'ou//v.'. tro], tth:.:ht:

BB(j's BIHYs fin:m..::i.d Imauci.rl mlUl;lgem;;nt Imm~ :g~m~:l~ system :sy~tc!l1 isis inin ~llb;,klt!,;[1:;u b ;,kH~ ;al compl ':{jmrhali~'<:iance wwith ith 1.11-.: lh..: h:;kr;d h:,::;;r;\l FiJ';.:lCliJl Fin; .:ICliJ l;\\, ~;::t.l.:·.J:;\ll:l:t:: : :t . I.:·.e :~ ll:l:t ImpLmpw".'cJ:1Cnl.ro v crncru ''\(1 \ ,:1n'!'\( FF\ l!/\!l! /\ ~ ot' ('1 ii 'J'lb, 'j 'lb .

!::C' f"}':t: rqmn rc pn r: st;W:, $t ~H ':5 lhal that l liw. h\', ,'UTrent curren t nn~lncialn n ~l!lcial syslem systv m n:quiTt:$ n.~·qul p,:~ uu~s -toto dJ<.:Ye!opevelop clementsck'nKTI1'; I,f\)( lhe11h: ~ l:n:lJld;>!ttn:tr'J c1:l! s~';:l<.l;;I<::.. rn.:n'". l'.cntx. prim:ip:dly r:rim:ip.d ly pproperty, roperty. prl;.nt. l;;nt. ,ltd ;In<1 et:qUlpmcm. q uipmen t. ("film Ih :ill sources "~)l.lrccS other other ihallthun L:hot:,c !len.:ra]llcn:.:ral (kd~.:d~l'I' ·r anda nd thdJ(:~·-'c:·: is is aa h.:kI:;·.:k ofIll' lilll1lllyly c"djlcnc!ili,·Ji.:d finan,:: fin<Int::.,1.•l m n'.1I1,\!.~l·fJ1Cnl.lI1;I:,'.I·rncnt "p.;:ratlt:g"pe1':..Utlg pfO'-"dllr.:s.procedures . \Vc \V" mldL"r'stalld H:ldlTSt:JIId :hat :ha:de\"clnpmgdevctupmg clelllcntsclements of uf 111<.:lhf.: !in~;lclU~j i ~ l~ ; lC t ~ l st;\:l'm Sh~~l'· t nc'llls nts [rom frun t li(lWr.:l'~sut.:. rt': L'~ l.utsidc «uisidc os't11(; ot' the lill:.111.:i;J! ! in:,tll~ l ~d sysk'ill sy~k' n, in im:[<:a,~.::;Ctf...:[L.:::t::,:;

lh<~lb~' !,ut<:ntiul l".Jl\.·ntia l fc·r i' :·f ornmi,s'ion u isxiou oro t' sigsignifinifk ...am am ll::m'1J)s.aoCtil)DS� m s i!c t i"ns \\i,:,: V,: ;1,\lso 1'10 ,,~c()l,;nj;t.('re c0i::nlz:: 1hnlth at 1lh<:!1 ,' !:ibd: ck oror I"lilyrnll : ..<:O.,JiJled....,lEJi ::d p!Yh:t.:duf'pn;~c,;dur(~s1:S pr("~cnt;;p resents ()rpn:-ll:.nllie~{,)Pp0 :-lt::l i l i e ~"... f{)r ftl l inl.:(H):ir[l:I,~n:~~$'lCnf';ic':";; 15 t ('I'H~il.:s and and erroe:rrn~rs in in p:()ccssiagp:'.)('c 5si ng nn~lTlCt;ltnn,anc~ ;l l tr;':jr>:~1l':1inn:~.t r:-'H :--: : ll..: t : o n~L

J((Jl)\.j :~.II'J

7� 7

Page 9: AuditAudit ofof thethe Broadcasting BroadcastingBoardBoard ... · certaincertain otherother lawslaws and andregulations regulationsspecifiedspecified inin OMBOMB BulletinBulletin

\\'t; \.\'t; ;If': ~H~ ccontInuing onti nuing. toto t::kc tr.kc Sh:ps step s tto o cocorrect rrec t thethc~t:se arean:::s. .;s . \Vhik:: \Vhih: the the fltl:w:::iaJ flnan;::i aJ s~systcrn stt::n doJ()t.s es Hotnot ::·,~ue, :~ tJ c interim interim l~n;:mc:all:n~tlJc :~li n'pn('\~.re po rts . 11ll: ihc !.IBO BBG 1t:IS h;IS l~st,:blishedcsld.'li:;he,l aa repnning report ing It}(to·ol ) ! thm tha t ecn;:lhks nables LIS us to toFNU":Cproduce inh:rim inte rim ffin:UJci:J1inancic l rcpurt$rep orts basbascd ed on011 tthe he gCl1t::FtJlgener-w l !edger. ledger. Since Since FY FY 2005, 2005. uutilizing til iz ing this thisfCj1{)rti:1g reporting tool, to ol, tth(,; he BBGBBG hahas s su<;\.ihmilttd bmitted timciy time ly its its quqU;IJtcrly arterly (inane;a. fina n cial sstatemcnt~;ta te me nts toto the tLr.; Office O ffice ofofManagement \1an:1gcl::lcnl,mu and Budgc\,Budge:t

W\Vc e <:mrcntly cu rren tly croern::;:, ss sen servii~ece with with the the DepDepartment artment of of Sute SUI\: for for fimmei3..l financial system system servicselyicc~;.es. WeWe wi\villllh(· be trtr:l1nitioni::g ans itionirn; hl In th.: the D<':l':lr!ln<,'llll)!" D-: l' art; n<" llt ' 11'lnteriOl lnter iors's \ :-.I{omentum On1Clltllm sysystem stem hy by mitl-FY mi J ·FY 2008. 2008, WeW e alit al\i kicip:d~ ip ~,Je thatthat the the lIew new financial rinu ncia! system syste m will will aaUo'.v llo w fofOT r Ill,'the inft:hrL:tior1 inlt:gr;:tion oor' tppmrcrt)' ro pc rty data da til Into in to th,~th .,

g.::-:cr:z[ general lk'i:Jgcr edger unulld d lnl(;r:rn int e rim t1n:Hlcial t1nun<:1~-,1 rrCl'lll'ting. cpnn tng.

J11111 FVY Y lOlb, 20{):'-, lice t l:e 1l BBBG G b1::gan ht'gan updating updat ing and and r~\,'ritjl1g:""',H iti ng llh:: k ' \[\[.mu;}1 ;Hlll;}1 ",)f r OpOptTill tT;ll ic jPHS l 1\3 ,md imel

>,\,tJ~~\dr:: inistl':uion in isuation i.i. \·]0/\.). \1 0 :\ ), YVc \\'t: hu\'\: hav e drnfkd dru lkd :l!l a ll ~t;<::i\l~n::'iOn;; n:; 1mfin (he [he UfliOfiicecc [IlJf f the tbe ChIefChlc f Fin:.mClal Fin an e iat<ntticer. )t'ti·::.'t."r. i!iJlcJud~I:!!lc]ud ir:g ('odjfy:rg cod if)'irg Ihl; I h l..~ fin:lll1.:iaJ financial ni~tn:m:'Jl::~l,;IJj-'::ll\, ~ ~c.: l n~lH, hLlJ;;.c!.b LJ .j~.I~ t . aand nd !}erCnrm",n,'c ~>et~rnrHl~n\."c mnuagcmerum. nngclH<:nl(':pcr:;~~ngl.)P;..?L::ing proccdun:s. proced ures, \\'v';; V:; Ih~\Cha\t:\.: ~olll{..}1~.1r.;~JOJ1 1p-h:h:d ninenine o(,)f f' the the ee~c\'enleven s~;?.:-c,icns~ec t ions, aa,no nd :hcy.hc y arc are ppGst.,;.~doste d ()n on1h:11 ~ t: .Agency~\ :;t."nc y IntranefIntra ne t ...w,:b~lll:'.vcbsu e . TtT!'It: u..: rClll;I;!lIl1~f'e !n: l i nil1~ [ r\'.'o \ '.'0 ;,t'clions :--.t: rl io n~ ;UT arc heing being finalizcd. finalize d .

',he ' ; he 1I:Cj)lH1. n:porl als also o no!L'~noll'S ll un:: !1t,: rcft'[)<)n~lbkpcrtable "llJiditl0l'! n l!1diliml I't:;arding n' ;,;ard in ~ ththe e "'\;'\f;.cl1c~/s ~. ;:I1i::Y · s rcrcconciliu:iClJ1 co nc iliario n ('If of:!'2COWlI.S ac co unts p:J.y~:b[c.paycb lc . \Vc\1,1..: areUr\; ·.vw()r[;iil~orking \\'ltlllhcwit h ,h•c Dqi,lrrftlCnt Department OfSt:l1!: ofSt:llt: tto o accomplish accomplish 1his thi s .,:11.1 :;:11.1 L~\'C'have lrecentl~ece l1li ~ rcc,'i"ca n:c;·civc d a a lik lik ww:I.1: uh lh<.: the <..Wl:rs":,l$ ov ers eas aC~~Ollnl:;account s p:Jfl:1:y;!hlc yirhlc fik,; files that that I1ccd nee d hl to hbe e rccoJ1c::cd.reconciled.

"hnnk Thank yyou o u !{.'r !i.H· l ria: i;l: npportlilliry npP"fi1i!lily 10 HI (;011ll1lUi1ltn com ment (Hi tllt: the ::~l:"~Iditd i t l..:pnrt report and a:ld fl()I or ('otlal",xatiYl':y collaborativr ly w,w,'r~.il1g'rkillg

',vit1;wi tl: usus on o n JUtJ Uf FY F Y 2007.2007 audit. udit. \Ve \V:: b~h:n::believe tllnt that the the RBG fE~G has ha s n::u:~:dc:dc ::;i si,-~tliL:ni t'i:.:anl I~;; anl :;lridcs str ide s in in :he th ePpa~;l%t yc Y';~:lrur ;I,'i i\." wo: we undeunJef\~'el)trwe nt omtr ur fourthfourth 3witaudit orof ouourr prillcipalprinci pal fiiinanci,llnancial ::;st;\lt:lnenl:', 1;: le11H:n1:;, ;md ~ md \\<,<: \ (; arcarc com C{'hYlI'l,iltt::d mit ted 10 to (X,nl1:1UaJly c o nt in uall y irnpr(l',.'inl~im proving Ihl: the inrn;lnd~.''::lll"m ~ ln dL'..eu rcn t oro r ,)IJr ou r programs prng.fanl S ~:Jlid Jl id 1.11(,; the quaqlla~il\'lity ,.)( .,)( our ourCILUll,:il,,1 fic ,.u ...~ i ;~ l rrt'p(,[ting, cp o rr ing .

S in c<.:n:l y,

JaJa~!t:tnet KF<:'. .. Slonnt..:s St(lr1~: f..:S

Chid' Chid' rlll:HKia: r1l1:"lCi,1: Or'tiC!:lO rliccl

8 8


Recommended