Auditor faults OPM accounting system

An independent audit of the Office of Personnel Management’s 2005 consolidated financial statements found the agency in generally good shape. However, the auditor recommended that OPM consider buying a new accounting system or modifying its current system to provide accurate information about intragovernmental activities and balances.

OPM’s Government Financial Information System doesn’t capture some financial data and is not properly configured to provide intragovernmental balances, according to the KPMG auditors who conducted the 2005 evaluation.

The audit cites three deficiencies as reportable conditions. KPMG advised OPM to keep working to correct differences between its internal financial data and the information reported by the Treasury Department, and to strengthen its access controls to meet the requirements of the Federal Information Security Management Act.

In response to the audit, OPM officials acknowledged deficiencies in the agency’s accounting system. They cited those deficiencies as reasons why OPM has signed an agreement to have Treasury host the financial systems that support OPM’s revolving fund programs, salaries and expense accounts.