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U.S. Environmental Protection Agency
Office of Inspector General
At a Glance
July 9, 2012
Why We Did This Review
The purpose of this audit was to
determine whether the U.S.
Environmental Protection Agency
(EPA) effectively managed the
implementation of Compass so
that there is a clear cutoff
between transactions entered in
the Integrated Financial
Management System (IFMS) and
Compass Financials (Compass).
We also sought to determine
whether EPA properly migrated
financial data to Compass from
In October 2011, the EPA's
Office of the Chief Financial
Officer replaced IFMS with
Compass—a new system. All
relevant reference and general
ledger (GL) data were to be
migrated to Compass from IFMS.
The conversion and migration
strategies included the conversion
of the ending balances from
IFMS identified during the annual
closing into the beginning
Compass balances for fiscal year
(FY) 2012.
For further information, contact
our Office of Congressional and
Public Affairs at (202) 566-2391.
The full report is at:
EPA Did Not Properly Migrate General Ledger
Balances to Compass From the Integrated
Financial Management System
What We Found
EPA did not properly migrate GL balances to Compass from IFMS. We found
differences in certain FY 2012 beginning balances, abnormal balances, and
Agency adjustments to beginning balances. The Federal Managers' Financial
Integrity Act requires agencies to provide reasonable assurance that accounts
are properly recorded and accounted for to ensure reliability of financial
reporting. The errors we found are indicators of internal control and oversight
weaknesses in the migration of balances.
The Agency stated that the differences were due to the mapping for vendor code
information, trading partner designations, and corrections to budget entries.
These errors occurred because EPA did not properly review and populate
vendor-type information and ensure proper oversight of the migration plan.
The Agency did not provide detailed support for the beginning balances, the
abnormal balances, or the adjustments to beginning balances, so we could not
fully determine the nature of the errors.
Because of the GL account differences and the lack of supporting details,
EPA cannot ensure the reliability of the FY 2012 balances used to generate the
financial statements. Without this reliance and proper support for balances, we
may not be able to render an unqualified opinion when we audit the FY 2012
financial statements.
Recommendations/Agency Corrective Actions
We recommend that the Chief Financial Officer determine whether the
supporting data elements in the beginning balances of the GL account and
treasury symbol were properly migrated to Compass from IFMS; adjust the
GL accounts with abnormal balances to include accurate activity and reflect the
proper balances; and correct the GL Crosswalk and provide the details to the
EPA Office of Inspector General.
We informed the Agency of issues identified in this report. The Agency stated it
has taken corrective actions and will provide supporting documentation. We
will assess the Agency's corrective actions during the FY 2012 financial
statement audit.