Page 30 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

Strengthened Financial Management through Enhanced Internal Controls

PCLOB’s first full internal controls assessment was completed in FY 2020. The assessment
found no fraud, waste, or abuse. None of the recommendations made in the internal
controls assessment’s final report aggregated to a material weakness or significant
deficiency.

The Board’s commitment to obtaining excellent service, responsiveness, and value for
taxpayer dollars resulted in a new contract for internal controls support in April 2020 to
remediate prior internal controls test findings, update procedures and controls based on
the new financial service provider processes, and continue identifying ways to strengthen
the Board’s internal controls through a second internal controls assessment. The new
internal controls support team has continued to review and refine internal financial
policies and procedures to align with those of the agency’s new service providers.

OVERVIEW OF FINANCIAL POSITION

PCLOB’s financial statements are submitted to the OMB in compliance with the
Accountability of Tax Dollars Act of 2002. As presented in the “Financial Information”
section of this report, these statements support the agency’s objective to improve financial
management and provide accurate, reliable information for assessing performance and
allocating resources. Agency resources primarily consist of funds appropriated by Congress
and administered by the Department of the Treasury (“Treasury”). The agency has the
authority to obligate these funds over a two-year period. In FY 2020, the agency received
$8.2 million in appropriations, operating under one general fund.

Overall, the Board’s financial position improved as a result of the FY 2020’s activities, as
presented in the agency principal statements:

Ø Balance Sheet,

Ø Statement of Net Cost,
Ø Statement of Changes in Net Position, and
Ø Statement of Budgetary Resources.

The Board prepares its Balance Sheet, Statement of Net Cost, and Statement of Changes in
Net Position on an accrual basis, in accordance with generally accepted accounting
principles; meaning that economic events are recorded as they occur, regardless of when
cash is received or disbursed. Agency management is accountable for the integrity of the
financial statements, which were prepared using the Board’s books and records in
conformity with GAAP, which for federal entities, are the standards prescribed by FASAB.
The FY 2020 financial statements have been audited by an independent certified public
accounting firm, Castro & Company. These financial statements earned an unmodified

FY 2020 AGENCY FINANCIAL REPORT 21