Page 41 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

Federal Managers’ Financial Integrity Act FY 2020 Unmodified
Management Assurance Statement

The management of the Privacy and Civil Liberties Oversight Board is responsible for
managing risks and maintaining effective internal control to meet the objectives of the
FMFIA.

The Board utilizes the services of the Department of Treasury Fiscal Services’ (“Treasury”)
financial management system, Oracle Federal Financials. Annual examinations of their
system indicate that the system complies with federal financial management systems
requirements, standards promulgated by the Federal Accounting Standards Advisory
Board and the U.S. Standard General Ledger at the transaction level.
PCLOB has established internal controls over its agreements, disbursements, and end-user
controls, and relies on the controls over accounting, procurement, and general computer
operations that Treasury has in place. The Board obtained Treasury’s 2020 Statement on
Standards for Attestation Engagements Number 18, Report on Controls at a Service
Organization Relevant to User Entities’ Internal Control over Financial Reporting report and
reviewed it to assist in assessing the internal controls over the Board’s financial reporting.
After a thorough review of the results, the Board did not discover any significant issues or
deviations in its financial reporting during fiscal year 2020.

In fiscal year 2020, the Board continued to develop its comprehensive Federal Information
Security Modernization Act program for its information systems. This program included
the implementation of a defined risk management framework that implements National
Institute of Standards and Technology defined security controls and requirement for
periodic audits. This has resulted in the Board’s ability to manage organizational risk and
maintain effective information security program.

We conducted an assessment of risks and evaluated internal controls to support effective
and efficient programmatic operations, reliable reporting, and compliance with applicable
laws and regulations in accordance with Office of Management and Budget Circular A-123,
Management’s Responsibility for Enterprise Risk Management and Internal Control. Through
this assessment, the Board can provide reasonable assurance that the objectives of Sections
2 and 4 of FMFIA have been achieved, and internal control over operations, reporting, and
compliance with laws and regulations were operating effectively as of September 30, 2020.

Adam Klein, Chairman Raheel Baig, Chief Financial Officer
November 13, 2020 November 13, 2020

FY 2020 AGENCY FINANCIAL REPORT 32