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Audit of the International Cooperative Administrative Support Services' 2001 and 2000 Principal Financial Statements (AUD/FM-03-17)

January 31, 2003


Under OIG?s direction, an independent external auditor audited the International Cooperative Administrative Support Services? (ICASS) 2001 and 2000 Financial Statements in order to obtain reasonable assurance and express an opinion on whether the financial statements fairly present, in all material respects, the financial position and results of financial operations in conformity with generally accepted accounting principles, to determine whether ICASS had an internal control structure that provided reasonable assurance of achieving internal control objectives, and to determine whether ICASS complied with applicable laws and regulations.

The external auditor issued an unqualified opinion on the ICASS 2001 and 2000 Financial Statements. Although an unqualified opinion was issued, the report brought to management?s attention concerns about security over the Department?s information system networks and the Paris Accounting and Disbursing System, the inadequacy of the Department?s financial and accounting system, and the Department?s controls over undelivered orders.