[Independent Auditorsâ Report on the National Park Serviceâs Financial Statements for Fiscal Years 2002 and 2001]
[From the U.S. Government Printing Office, www.gpo.gov]

Report No. 2003-I-0021

Title: Independent Auditorsï¿½ Report on the National Park Serviceï¿½s
       Financial Statements for Fiscal Years 2002 and 2001

  

Date:  February 25, 2003 


Memorandum

To:  Director, National Park Service

From:  Roger La Rouche,  Assistant Inspector General for Audits

Subject:  Independent Auditorsï¿½ Report on the National Park Serviceï¿½s Financial Statements for Fiscal Years 2002 and 2001 (No.  2003-I-0021)

We contracted with KPMG LLP (KPMG), an independent certified public accounting firm, to audit the National Park Serviceï¿½s (NPS) financial statements as of September 30, 2002 and for the year then ended.  The contract required that KPMG conduct its audit in accordance with the Comptroller General of the United States of Americaï¿½s Government Auditing Standards, the Office of Management and Budgetï¿½s Bulletin 01-02 Audit Requirements for Federal Financial Statements, and the General Accounting Office/Presidentï¿½s Council on Integrity and Efficiencyï¿½s Financial Audit Manual.

In its audit report dated December 12, 2002 (Attachment 1), KPMG issued an unqualified opinion on NPSï¿½s financial statements.  KPMG identified four reportable conditions related to internal controls and financial operations: (A) security and general controls over financial systems, (B) reconciling intra-governmental transactions and balances, (C) controls over financial reporting, and (D) completing deferred maintenance estimates.  KPMG considered the first two conditions to be material weaknesses.  With regard to compliance with laws and regulations, KPMG found that NPS was not in substantial compliance with the three requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA). Specifically, NPSï¿½s financial management systems did not substantially comply with Federal financial management systems requirements, federal accounting standards, and the United States Government Standard General Ledger at the transaction level.

In connection with the contract, we monitored the progress of the audit at key points, reviewed KPMGï¿½s report and selected related working papers, and inquired of its representatives.  Our review, as differentiated from an audit in accordance with the Government Audit Standards, was not intended to enable us to express, and we do not express, an opinion on NPSï¿½s financial statements, conclusions about the effectiveness of internal controls, conclusions on whether NPSï¿½s financial management systems substantially complied with the three requirements of FFMIA, or conclusions on compliance with laws and regulations.  KPMG is responsible for the auditorsï¿½ report and for the conclusions expressed in the report.  Our review has disclosed no instances where KPMG did not comply in all material respects with the Government Auditing Standards.

In the January 29, 2003 response to the draft report from the Chief Financial Officer, NPS (Attachment 2), NPS concurred with all of the recommendations. Based on the response all the recommendations are considered resolved but not implemented.  The recommendations will be referred to the Assistant Secretary for Policy, Management and Budget for tracking of implementation.

Section 5(a) of the Inspector General Act (5 U.S.C. App. 3) requires the Office of Inspector General to list this report in its semiannual report to the Congress.


Attachments (2)