Management Letter Related to the Audit of the U.S. Agency for Global Media FY 2023 Financial Statements | U.S. Department of State OIG

Management Letter Related to the Audit of the U.S. Agency for Global Media FY 2023 Financial Statements 02/14/2024 01:01 PM EST Kearney & Company, P.C. (referred to as “we” hereafter), audited the financial statements of the U.S. Agency for Global Media (USAGM) as of and for the year ended September 30, 2023, and issued our report thereon, dated November 15, 2023,1  in accordance with auditing standards generally accepted in the United States of America; 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 Bulletin 24-01, Audit Requirements for Federal Financial Statements. In planning and performing our audit of USAGM’s financial statements, we considered USAGM’s internal control over financial reporting and compliance with certain provisions of laws, regulations, contracts, and grant agreements.  Our auditing procedures were designed for the purpose of expressing an opinion on the financial statements and not to provide assurance on internal control over financial reporting or compliance with certain provisions of laws, regulations, contracts, and grant agreements.  Accordingly, we do not express an opinion on the effectiveness of USAGM’s internal control over financial reporting or on USAGM’s compliance with certain provisions of laws, regulations, contracts, and grant agreements. Our audit report on USAGM’s FY 2023 financial statements2 did not include any material weaknesses related to internal control over financial reporting or any reportable instances of noncompliance.  Although not considered to be material weaknesses, significant deficiencies, or reportable instances of noncompliance, we noted certain matters involving internal control over financial reporting, noncompliance, and operational matters.  These findings are summarized in Appendix A and are intended to assist USAGM in strengthening internal controls and compliance and improving operating efficiencies. We appreciate the courteous and professional assistance provided by USAGM personnel during our audit.  These findings were discussed in detail with appropriate USAGM officials, and management’s response to the draft of this report is presented in its entirety in Appendix B.   1 OIG, Independent Auditor’s Report on the U. S. Agency for Global Media FY 2023 and FY 2022  Financial Statements (AUD-FM-IB-24-08, November 2023). RELATED GAO Issues 2024 "Yellow Book," Updating the Standards for Government Auditing WASHINGTON (February 1, 2024)—Today, the U.S. Government Accountability Office (GAO) issued the 2024 revision of Government Auditing Standards, also known as the Yellow Book. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide a framework that auditors around the world use to perform high-quality audit work when reviewing government programs and spending. This revision provides updates to the 2018 version. “This latest update enhances and modernizes the standards to perform high-quality audit work with competence, integrity, objectivity, and independence using a proactive and risk-based approach,” said Gene L. Dodaro, Comptroller General of the United States and the head of the GAO. “Implementation of these standards leads to greater accountability of government spending and improved services and operations.” The 2024 revision enhances how audit organizations manage audit quality. Effective quality management can reasonably assure an audit organization that its people, audits, and reports adhere to professional standards and applicable laws. Updates include: a change in approach from quality control to quality management a risk-based process for achieving the objectives of quality management provisions for optional engagement quality reviews of GAGAS engagements application guidance on key audit matters for financial audits The 2024 revision of Government Auditing Standards has gone through an extensive deliberative process, including public comments. The views of all parties were thoroughly considered in finalizing the standards. This revision requires an audit organization to design and implement its system of quality management by December 15, 2025. The updated Yellow Book is available in hardcopy and digital formats. Hardcopies will be available from the Government Printing Office in the near future, while digital copies can be found on GAO’s website. For more information, contact Chuck Young, Managing Director of Public Affairs, at (202) 512-4800. ##### The Government Accountability Office, known as the investigative arm of Congress, is an independent, nonpartisan agency that exists to support Congress in meeting its constitutional responsibilities. GAO also works to improve the performance of the federal government and ensure its accountability to the American people. The agency examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO provides Congress with timely information that is objective, fact-based, nonideological, fair, and balanced. GAO’s commitment to good government is reflected in its core values of accountability, integrity, and reliability. Industrial Cyber GAO audit reveals federal agencies' struggle to fully implement cybersecurity incident response requirements - Industrial Cyber