Department of Homeland Security
 

U.S. Immigration and Customs Enforcement’s 

Management Letter for FY 2011 DHS Consolidated 

Financial Statements Audit 

OIG-12-51 March 2012
 
Office o!lllspcctor General

U.S. Department of Homeland S«urity

Washington, DC 20528

Homeland

Security

MAR 14 1011

Preface

The Department of Homeland Security (DHS) Office of Inspector General (OIG) was

established by the Homeland Secllrity Act 0/2002 (Public Law 107-296) by amendment

to the fnspector General Act of 1978. This is one ofa series of audit, inspection, and

special reports prepared as part of our oversight responsibilities to promote economy,

efficiency, and effectiveness within the Department,

This report presents the U,S. Immigration and Customs Enforcement's Management

Letter for FY 2011 DHS Consolidated Financial Statements Audit. It contains

observations related to internal controls that were not required to be reported in the

financial statements audit report. The independent public accounting finn KPMG LLP

(KPMG) perfonned the integrated audit ofDHS' FY 2011 financial statements and

internal control over financial reporting and prepared this management letter. KPMG is

responsible for the attached management letter dated February 3, 2012 and the

conclusions expressed in it. We do not express opinions on DHS' financial statements or

internal control or provide conclusions on compliance with laws and regulations.

The observations herein have been discussed in draft with management officials. We

trust this report will result in more effective, efficient, and economical operations. We

express our appreciation to all ofthose who contributed to the preparation of this report.

Anne L. Richards

Assistant Inspector General for Audits
 

 

KPMG LLP 

Suite 12000 

1801 K Street, NW 

Washington, DC 20006 

February 3, 2012 

Office of Inspector General 

U.S. Department of Homeland Security, and 

Chief Financial Officer 

U.S. Department of Homeland Security U.S. Immigration and Customs Enforcement 

Washington, DC 

Ladies and Gentlemen: 

We have audited the balance sheet of the U.S. Department of Homeland Security (DHS or 

Department) as of September 30, 2011 and the related statement of custodial activity for the year 

then ended (referred to herein as the “fiscal year (FY) 2011 financial statements”). The objective 

of our audit was to express an opinion on the fair presentation of these financial statements. We 

were also engaged to examine the Department’s internal control over financial reporting of the 

balance sheet as of September 30, 2011, and statement of custodial activity for the year then ended, 

based on the criteria established in Office of Management and Budget, Circular No. A-123, 

Management’s Responsibility for Internal Control, Appendix A. 

Our Independent Auditors’ Report issued on November 11, 2011, describes a limitation on the 

scope of our audit that prevented us from performing all procedures necessary to express an 

unqualified opinion on DHS’ FY 2011 financial statements and internal control over financial 

reporting. In addition, the FY 2011 DHS Secretary’s Assurance Statement states that the 

Department was unable to provide assurance that internal control over financial reporting was 

operating effectively at September 30, 2011. We have not considered internal control since the 

date of our Independent Auditors’ Report. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, 

or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 

combination of deficiencies, in internal control such that there is a reasonable possibility that a 

material misstatement of the entity’s financial statements will not be prevented, or detected and 

corrected on a timely basis. A significant deficiency is a deficiency, or a combination of 

deficiencies, in internal control that is less severe than a material weakness, yet important enough 

to merit attention by those charged with governance. In accordance with Government Auditing 

Standards, our Independent Auditors’ Report, referred to in the paragraph above, included internal 

control deficiencies identified during our audit, that individually, or in aggregate, represented a 

material weakness or a significant deficiency. 

The U.S. Immigration and Customs Enforcement (ICE) is a component of DHS. We noted certain 

matters, related to ICE that are summarized in the Table of Financial Management Comments on 

the following pages, involving internal control and other operational matters that are less severe 

than a material weakness or a significant deficiency, and consequently are reported separately to 

the Office of Inspector General (OIG) and ICE management in this letter. These comments and 

recommendations, all of which have been discussed with the appropriate members of management, 

are intended to improve internal control or result in other operating efficiencies. The disposition of 

each internal control deficiency identified during our FY 2011 audit – as either reported in our 

Independent Auditors’ Report, or herein – is presented in Appendix A. The 

KPMG LLP is a Delaware limited liability partnership, 

the U.S. member firm of KPMG International Cooperative 

(“KPMG International”), a Swiss entity. 
status of internal control deficiencies identified during our FY 2010 audit is presented in Appendix 

B. Our findings related to information technology systems security have been presented in a 

separate letter to the OIG and the ICE Chief Financial Officer and Chief Information Officer. 

We would be pleased to discuss these comments and recommendations with you at any time. This 

report is intended for the information and use of DHS’ and ICE’s management, the DHS Office of 

Inspector General, the U.S. Office of Management and Budget, the U.S. Congress, and the 

Government Accountability Office, and is not intended to be and should not be used by anyone 

other than these specified parties. 

Very truly yours, 
 

 

APPENDIX 

Appendix Subject Page(s) 

A 

B 

Crosswalk – Financial Management Comments to Active Notices of Finding and 

Recommendation (NFRs) 

Status of Prior Year NFRs 

8-9 

10 

U.S. Immigration and Customs Enforcement 

Table of Financial Management Comments 

September 30, 2011 

TABLE OF FINANCIAL MANAGEMENT COMMENTS (FMC) 

Comment 

Reference Subject Page(s) 

FMC 11-01 Failure to Record Payroll Accrual 2 

FMC 11-02 General Journal Entry Not Approved by Office of Financial Management Director 2 

FMC 11-03 Inadequate Internal Controls over Tracking and Removing Accumulated Depreciation 2 

in Sunflower Asset Management System 

FMC 11-04 Process for Identifying Contract-type Obligations for Contract Close-out is Delayed 2-3 

FMC 11-05 Inadequate Internal Controls over Tracking Leasehold Improvement Projects 3 

FMC 11-06 Untimely Recording of Capitalized Asset Disposals 3 

FMC 11-07 Reimbursable Agreements Not Timely Approved by Budget Officer 4 

FMC 11-08 Contracting Officer has Access to Approve Invoices in Federal Financial Management 4 

System (FFMS) 

FMC 11-09 Incorrect Federal Employees Group Life Insurance Deduction 4-5 

FMC 11-10 Untimely Review of Office of Government Ethics 278 Forms 5 

FMC 11-11 Insufficient Documentation for Federal Employees’ Compensation Act Claims 5 

FMC 11-12 Inadequate Controls over New Hire Ethics Briefings 6 

FMC 11-13 Subject to Availability of Funding Agreements not Obligated in FFMS at Outset of 6 

Agreement 

FMC 11-14 Ineffective Internal Controls over Leave Audit Process 6-7 

FMC 11-15 ICE Does Not Accrue Capitalized Costs Incurred at Year-end for Software and 7 

Leasehold Improvement Projects 

FMC 11-16 Inadequate Internal Controls over Tracking of Internal Use Software Projects 7 

1
 
U.S. Immigration and Customs Enforcement 

Financial Management Comments 

September 30, 2011 

FMC 11-01 – Failure to Record Payroll Accrual (NFR No. ICE 11-02) 

We noted that U.S. Immigration and Customs Enforcement (ICE) did not adhere to its policy to 

accrue for payroll expenses that it had incurred at the end of the first and second quarters in fiscal 

year (FY) 2011. 

Recommendation: 

We recommend that ICE adhere to its policy and record an accrual for payroll expenses at the end 

of each quarter. 

FMC 11-02 – General Journal Entry Not Approved by Office of Financial Management Director 

(NFR No. ICE 11-03) 

Per ICE policy, the ICE Office of Financial Management (OFM) Director is required to review 

and approve general journal (GJ) entries with debits and credits in excess of $300 million and 

sign the GJ cover sheet as evidence of his review. However, during testwork over GJs, we noted 

that ICE OFM processed one GJ transaction with debits and credits in excess of $300 million that 

was not approved by the Director of OFM. 

Recommendation: 

We recommend that ICE provide additional training to employees to ensure complete 

understanding of the requirements of the GJ Procedures Standard Operating Procedures. 

FMC 11-03 – Inadequate Internal Controls over Tracking and Removing Accumulated 

Depreciation in Sunflower Asset Management System (NFR No. ICE 11-04) 

We selected a sample of five personal property items with abnormal balances as of June 30, 2011 

and noted that the assets had negative net book values due to either (1) depreciation in Sunflower 

Asset Management System (SAMS) in excess of the asset’s value or (2) failure to write-off 

accumulated depreciation in SAMS upon disposal of the asset. 

Recommendation: 

We recommend that the ICE OFM and Office of Asset Administration (OAA) create and utilize 

existing detective tools to identify data anomalies within SAMS to specifically address 

depreciation anomalies. 

FMC 11-04 – Process for Identifying Contract-type Obligations for Contract Closeout is Delayed 

(NFR No. ICE 11-05) 

We selected a sample of eight undelivered orders (UDOs) from a population of UDOs that had no 

disbursement activity from June 30, 2010 to June 30, 2011 and noted that three of the eight aged 

UDOs were valid, but not active as of June 30, 2011. These UDOs needed to be reviewed by 

Program Offices before the contract close-out process for deobligation may begin; however, 

Office of Acquisitions (OAQ) indicated that the Program Offices would not complete this review 

until FY 2012. 

2
 
U.S. Immigration and Customs Enforcement 

Financial Management Comments 

September 30, 2011 

Recommendations: 

We recommend that ICE OFM with support from OAQ, Office of Facilities Administration 

(OFA), and ICE program offices: 

 Continue to emphasize timely review of open obligations, consistent with its current business 

processes, on a priority basis based on amounts/materiality and available resources. 

Continue to emphasize timely monitoring and enforce existing policies and procedures for

review and closeout of UDO balances with expired periods of performance. 

FMC 11-05 – Inadequate Internal Controls over Tracking Leasehold Improvement Projects 

(NFR No. ICE 11-06)

In the beginning of FY 2010, ICE OFM conducted a review of software and leasehold

improvements and detected errors in the balances and subsequently recorded adjustments to the 

leasehold improvements (LHIs) in process and software in-development balances as a result of 

these errors. In FY 2011, as management continued to improve its process and controls, ICE 

recorded additional adjustments to the LHI in process balances for costs that were incurred in 

prior fiscal years. 

Recommendations: 

We recommend that ICE OFM and OFA: 

 Utilize existing controls as well as establish additional controls to ensure capital projects are 

identified at the time of obligation. 

 Perform recurring data reviews and tests to ensure established controls are operating 

effectively. 

FMC 11-06 – Untimely Recording of Capitalized Asset Disposals (NFR No. ICE 11-07) 

During testwork over capitalized asset disposals as of June 30, 2011, we noted that one of the five 

capitalized vehicle disposals selected for testwork was disposed of in FY 2010, but was not 

recorded as a disposal in SAMS or Federal Financial Management System (FFMS) until FY 

2011. 

Recommendations: 

We recommend that ICE OAA, OFM, and DHS Project Management Office for SAMS: 

Meet to implement policies and procedures to ensure that disposals are removed from the 

general ledger in a timely manner. 

 Evaluate the discrepancy and formulate an action plan to eliminate the inconsistency between

actual disposal and when the disposal is recorded. 

3 
U.S. Immigration and Customs Enforcement 

Financial Management Comments 

September 30, 2011 

FMC 11-07 – Reimbursable Agreements Not Timely Approved by Budget Officer (NFR No. ICE 

11-08)

During testwork over reimbursable agreements as of June 30, 2011, we noted that three

reimbursable agreements had not been timely approved by a Budget Officer. 

Recommendations:

We recommend that ICE: 

 Follow the procedures outlined in the ICE Budget Execution Handbook, which includes

guidance stating that Office of Budget and Program Performance (OBPP) will sign all 

reimbursable agreements that are accompanied by a complete package within five business 

days of receipt. 

 Plan to submit reimbursable agreement packages to OBPP 30 calendar days prior to the start 

of the agreement’s period of performance to ensure timely completion and signature prior to 

expenses being incurred.

FMC 11-08 – Contracting Officer has Access to Approve Invoices in Federal Financial 

Management System (FFMS) (NFR No. ICE 11-10) 

We reviewed a listing of contracting officers (COs) and their access rights within FFMS in order 

to determine whether appropriate segregation of duties was enforced between those COs who 

were able to enter into agreements and those COs who process payments and noted that 1 out of 

71 COs had inappropriate access rights within FFMS. The contracting officer had authority to 

approve agreements and to input receiving tickets in the PM030 screen within FFMS. The 

contract approval and payment processes should be separate. 

Recommendations:

We noted that ICE OAQ implemented “read or view-only” FFMS access for employees with CO 

responsibilities. 

We recommend that ICE: 

OAQ Mission Support Team (MST) continue to monitor and approve FFMS access. 

 Ensure all warranted COs request access to FFMS through the OAQ MST. 

 Continue to follow the semi-annual validation process in which the listing of warranted COs 

is sent to the FFMS Help Desk for access validation. 

FMC 11-09 – Incorrect Federal Employees’ Group Life Insurance Deduction (NFR No. ICE 11-11) 

During testwork over compliance with laws and regulations, we noted that ICE did not accurately 

deduct an employee’s Federal Employees’ Group Life Insurance (FEGLI) deduction for one

sample item out of thirty-two. We noted that the employee elected FEGLI coverage of “Basic – 

5X additional.” At the time of the election, the employee worked at Federal Emergency 

Management Agency and the election was coded as “Basic – 1X.” When the employee 

transferred to ICE, ICE Human Resources personnel did not correct the deduction amount despite

having the information on which to make the change.

4 
U.S. Immigration and Customs Enforcement 

Financial Management Comments 

September 30, 2011 

Recommendation:

We recommend that ICE Office of Human Capital (OHC) implement procedures to review and

confirm benefits information for employees who transfer into the agency. 

FMC 11-10 – Untimely Review of Office of Government Ethics 278 Forms (NFR No. ICE 11-12)

We selected a sample of 15 SF-278 financial disclosure forms filed by ICE employees and noted 

that seven items had not been certified within 60 days of receipt as required by CFR 5 § 

2634.605. We noted that all SF-278s were ultimately certified, but outside the 60 day window. 

Recommendation:

We recommend that ICE continue to work with filers, supervisors, the DHS Ethics Office, and 

the DHS Financial Disclosure Management (FDM) system contractor to achieve improved

implementation of the FDM system. Due to technical issues, we noted that one supervisor of 

twenty filers was not added to FDM until mid-August, delaying supervisory review and

certification. 

FMC 11-11 – Insufficient Documentation for Federal Employees’ Compensation Act Claims (NFR 

No. ICE 11-13) 

We noted that ICE OHC does not have formal policies and procedures in place to document the 

Federal Employees’ Compensation Act (FECA) process. In FY 2011, ICE OHC personnel 

operated under a draft directive. 

When performing testwork over 45 FECA claims, we noted the following:

 For three claims, the Federal Employee’s Notice of Traumatic Injury and Claim for 

Continuation of Pay/Compensation (CA-1) forms were not available for review. 

 For five claims, the employee did not completely fill out the CA-1 form and left fields 

blank. 

 For 12 claims, the claimant’s pay grade and step per the CA-1 form did not agree to the 

leave and earnings statement (LES).

For 11 claims, the claimants are no longer ICE employees and as a result we were unable 

to review LES’s for the purpose of our audit.

 For two claims, the employee did not include their grade/step information on the CA-1 

form. 

 For one claim, the Social Security number (SSN) per the CA-1 form did not match the 

LES and the employee did not include their grade/step information on the CA-1 form. 

For one claim, the employee did not authorize their CA-1 form with their signature. 

 For one claim, there was no SSN on the CA-1 form and the employee’s grade/step per the 

CA-1 form did not agree to the LES.

Recommendation:

We recommend that ICE OHC fully implement the draft directive related to FECA and conduct a

periodic review of FECA claims in order to assess the accuracy of the claim information and to 

confirm ICE’s ownership of the claim. 

5 
U.S. Immigration and Customs Enforcement 

Financial Management Comments 

September 30, 2011 

FMC 11-12 – Inadequate Controls over New Hire Ethics Briefings (NFR No. ICE 11-15) 

During testwork over a sample of 15 new hires from October 1, 2010 through June 30, 2011, we

noted that one individual was recorded as not having completed the required new hire ethics 

briefing. At the time of interim testwork, the individual was within 90 days of his hire date and 

we noted no exception. However, at year-end, we performed follow-up procedures and the ICE 

Ethics Office confirmed that the individual did not complete the required training until October 5,

2011, over 90 days from his initial hire date. 

Recommendation:

We recommend that ICE continue to follow existing policies and procedures related to ethics 

briefings for newly hired employees. 

FMC 11-13 – Subject to Availability of Funding Agreements not Obligated in FFMS at Outset of 

Agreement (NFR No. ICE 11-16)

We noted that Enforcement and Removal Operations (ERO) did not record a dollar value for 

obligations in FFMS under Subject to Availability Funding (SAF) agreements prior to incurring 

costs under the agreements. ERO occasionally incurs prompt payment interest because of the 

timing lag between when it receives an invoice and when it has funds available in FFMS to pay 

the invoice.

We noted that due to the prior year NFR, ICE OAQ, Office of the Chief Financial Officer 

(OCFO), and ERO have implemented guidelines to reduce the number of SAF clauses; however, 

these offices continue to draft new policies and procedures to address SAF clauses and do not 

expect full corrective action to be complete until September 30, 2012.

Recommendations: 

We recommend that ICE: 

 ERO stagger the period of performance for contracts to more closely align funding needs 

with apportionments. 

 Implement strengthened monitoring by OCFO in order to prioritize funding for mission

critical contracts. 

Develop and implement procedures for identifying and rejecting invoices for services 

that are not duly authorized. 

FMC 11-14 – Ineffective Internal Controls over Leave Audit Process (NFR No. ICE 11-17) 

During the walkthrough for the leave audit process, we noted that there was a 40% decrease in the 

number of leave errors in the past year. However, approximately 1,000 leave errors still existed 

as of May 7, 2011. We noted that differences in the leave balances between the National Finance 

Center records and WebTA reports were not being researched and resolved timely. 

6 
U.S. Immigration and Customs Enforcement 

Financial Management Comments 

September 30, 2011 

Recommendation: 

We recommend that ICE OHC: 

 Ensure that all employees responsible for timekeeping are appropriately trained in all aspects 

of the time and attendance system. 

 Analyze error reports to identify any common causes related to errors in the timekeeping

process. 

Review and report to the Program Office on timekeeping errors to ensure correction no later

than two pay periods from the date of official notification.

 Implement Timekeeping and Attendance Directive that establishes responsibilities for all 

employees involved in the timekeeping process and sets internal controls for leave errors. 

FMC 11-15 – ICE Does Not Accrue Capitalized Costs Incurred at Year-end for Software and 

Leasehold Improvement Projects (NFR No. ICE 11-18)

We noted the following irregularities and misstatements in property plant & equipment (PP&E) 

related to the failure to completely and accurately accrue for capitalized costs: 

 ICE OFM recorded accruals for leasehold improvements (LHIs) and LHIs in process for 

Management Directive in the fourth quarter of FY 2011, but then mistakenly reversed the 

accrual. 

ICE OFM accrued for its own leasehold improvement costs at September 30, 2011, but not its 

internal use software (IUS) projects. 

ICE OFM does not have policies and procedures in place to accrue for capitalized costs at 

year-end for its customer agencies. 

Recommendations: 

We recommend that ICE OFM: 

Continue to work closely with customers within ICE and at serviced components to clarify

data needs and definitions and to adhere to data call deadlines. 

Develop more comprehensive policies and procedures surrounding the accrual of capitalized 

PP&E costs to ensure consistency and minimize the chance for errors. 

FMC 11-16 – Inadequate Internal Controls over Tracking of Internal Use Software Projects (NFR

No. ICE 11-19) 

We noted that ICE failed to record capitalizable costs for IUS development as they were incurred 

in FY 2011. During year-end testwork, we identified $724,086 of expenses to services performed 

for the Sharepoint project in the second quarter and $739,436 of expenses related to services 

performed in the third quarter being added to IUS as a fourth quarter addition. 

Recommendation:

We recommend that ICE develop and implement comprehensive policies and procedures to 

assist in the appropriate tracking and recording of IUS projects. These policies and procedures 

will ensure that all pertinent ICE offices work collaboratively to resolve the control areas 

identified.

7 
Disposition1 

IAR FMC 

NFR No. Description MW SD NC No. 

11-01 The Federal Financial Management System (FFMS) has the 

Ability to Make Duplicate Payments B 

11-02 Failure to Record Payroll Accrual 11-01 

11-03 General Journal Entry Not Approved by Office of Financial 

Management Director 11-02 

11-04 

Inadequate Internal Controls over Tracking and Removing 

Accumulated Depreciation in Sunflower Asset Management 

System 

11-03 

11-05 Process for Identifying Contract-type Obligations for Contract 

Close-out is Delayed 11-04 

11-06 Inadequate Internal Controls over Tracking Leasehold 

Improvement Projects 11-05 

11-07 Untimely Recording of Capitalized Asset Disposals 11-06 

11-08 Reimbursable Agreements Not Timely Approved by Budget 

Officer 11-07 

11-09 Number Not Used Not applicable 

11-10 Contracting Officer has Access to Approve Invoices in FFMS 11-08 

11-11 Incorrect Federal Employees’ Group Life Insurance Deduction 11-09 

11-12 Untimely Review of Office of Government Ethics 278 Forms 11-10 

11-13 Insufficient Documentation for Federal Employees’ Compensation 

Act Claims 11-11 

11-14 Federal Financial Management Improvement Act of 1996 

Compliance K 

11-15 Inadequate Controls over New Hire Ethics Briefings 11-12 

11-16 Subject to Availability of Funding Agreements not Obligated in 

FFMS at Outset of Agreement 11-13 

11-17 Ineffective Internal Controls over Leave Audit Process 11-14 

11-18 ICE Does Not Accrue Capitalized Costs Incurred at Year-end for 

Software and Leasehold Improvement Projects 11-15 

11-19 Inadequate Internal Controls over Tracking of Internal Use 

Software (IUS) Projects 11-16 

Appendix A 

U.S. Immigration and Customs Enforcement 

Crosswalk - Financial Management Comments to Active NFRs 

September 30, 2011 

8
 
 

Appendix A 

U.S. Immigration and Customs Enforcement 

Crosswalk - Financial Management Comments to Active NFRs 

September 30, 2011 

1

Disposition Legend: 

IAR	 Independent Auditors’ Report dated November 11, 2011 

FMC	 Financial Management Comment 

MW	 Contributed to a Material Weakness at the Department level when combined with the results of all other components 

SD	 Contributed to a Significant Deficiency at the Department level when combined with the results of all other 

components 

NC	 Contributed to Non-Compliance with laws, regulations, contracts, and grant agreements at the Department level when 

combined with the results of all other components 

NFR	 Notice of Finding and Recommendation 

Cross-reference to the applicable sections of the IAR: 

A Financial Reporting 

B Information Technology Controls and System Functionality 

C Property, Plant, and Equipment 

D Environmental and Other Liabilities 

E Budgetary Accounting 

F Entity-Level Controls 

G Fund Balance with Treasury 

H Grants Management 

I Custodial Revenue and Drawback 

J Federal Managers’ Financial Integrity Act of 1982 (FMFIA) 

K Federal Financial Management Improvement Act of 1996 (FFMIA) 

L Single Audit Act Amendments of 1996 

M Chief Financial Officers Act of 1990 (CFO Act) 

N Antideficiency Act, as amended (ADA) 

O Government Performance and Results Act of 1993 (GPRA) 

9
 
Appendix B 

U.S. Immigration and Customs Enforcement 

Status of Prior Year NFRs 

September 30, 2011 

Disposition1 

NFR 

No. Description Closed2 Repeat (2011 NFR No.) 

10-01 Inadequate Internal Controls over Tracking Leasehold Improvement Projects ICE-11-06 

10-02 Inadequate Internal Controls over Tracking IUS Projects ICE-11-19 

10-03 Ineffective Internal Controls over Leave Audit Process ICE-11-17 

10-04 Ineffective Review Controls over the Preparation and Submission of the 

Contingent Legal Liabilities Documentation X 

10-05 Ineffective Internal Controls over SF-224 Process X 

10-06 Immigration Bonds were not Deposited in a Timely Manner X 

10-07 Untimely De-Obligation of Undelivered Orders (UDOs) Balances ICE-11-05 

10-08 Subject to Availability of Funding Agreements not Obligated in FFMS at 

Outset of Agreement ICE-11-16 

10-09 ICE Does Not Accrue Capitalized Costs Incurred at Year-End for Software and 

Leasehold Improvement Projects ICE-11-18 

10-10 Accounts Payable Estimate Methodology Does Not Include a Comparison to 

Actual Amounts X 

10-11 FFMS has the Ability to Make Duplicate Payments ICE-11-01 

10-12 Intragovernmental Payment and Collections System (IPAC Payments are Being 

Made Prior to an Obligation Being Set Up in FFMS X 

10-13 ICE was Unable to Support UDO Balances in a Timely Manner at Year-End X 

10-14 FFMIA Compliance ICE-11-14 

1 KPMG was engaged to perform an audit over the DHS balance sheet and statement of custodial activity as of and for the year 

ended September 30, 2011, and was not engaged to perform an audit over the statement of net cost, statement of changes in net 

position, and statement of budgetary resources for the year ended September 30, 2011. In addition, we were engaged to followup on the status of all active NFRs that supported significant deficiencies reported in our FY 2010 Independent Auditors’ Report. 

2 The scope of our audit was limited to follow-up on NFRs that supported a material weakness or significant deficiency as 

reported in our Independent Auditors’ Report. All other NFRs, e.g., that described insignificant findings, and therefore presented 

to DHS management as observations for consideration, were considered closed. 

10
 
Report Distribution 

Department of Homeland Security 

Secretary 

Deputy Secretary 

Chief of Staff 

Deputy Chief of Staff 

General Counsel 

Executive Secretary 

Director, GAO/OIG Liaison Office 

Assistant Secretary for Office of Policy 

Assistant Secretary for Office of Public Affairs 

Assistant Secretary for Office of Legislative Affairs 

Chief Financial Officer 

Chief Information Officer 

U.S. Immigration and Customs Enforcement 

Assistant Secretary 

Chief Financial Officer 

Chief Information Officer 

Audit Liaison 

Office of Management and Budget 

Chief, Homeland Security Branch 

DHS OIG Budget Examiner 

Congress 

Congressional Oversight and Appropriations Committees, as 

appropriate 
 

 

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