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FCC's Semiannual Management Report on Inspector General Audit Reports

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Released: December 10, 2009






















Enclosure 1


FEDERAL COMMUNICATIONS COMMISSION

MANAGEMENT REPORT ON INSPECTOR GENERAL AUDIT REPORTS FOR WHICH
MANAGEMENT DECISIONS WERE MADE MORE THAN ONE YEAR AGO BUT FINAL
ACTION HAS NOT BEEN TAKEN
(For the Six-Month Period Ending September 30, 2009)


Name of report

Date issued

Dollar value of

Dollar value of

disallowed costs
recommendations
that funds be put to
better use
1.
Report on Follow-up Special
3/7/2003 N/A
N/A
Review of Web Page Accessibility
(Report No. 02-AUD-02-05)

Explanation for no. 1:
The Commission has brought the International Bureau Filing System largely into
compliance with Section 508 and will work through the annual FISMA audit process to confirm
compliance. Any residual Section 508 compliance issues will be addressed by the consolidation of the
International Bureau Filing System with other licensing systems.

2.
Audit Finding Notification – Lack
9/30/2004 N/A
N/A
of Adequate Facility Maintenance in the
Anchorage Field Office (no audit report
no.)

Explanation for no. 2:
The maintenance and electrical problems noted in the report will be addressed by
relocating the Anchorage field office to leased space. The Commission identified a suitable space, but the
General Services Administration must lease it for the Commission. The Commission informed the GSA
of its need for the space four and a half years ago. Since February of 2009 the GSA and DOT have been
working together toward a possible relocation to property near the current facility

3.
Combined List of Universal Service



Fund Reports







a. Schools and Libraries Reports

$14,326,741
N/A
(including IPIA reports)





b. High Cost Reports
$1,811,269
N/A





N/A= Not Applicable

1

Enclosure 1

Name of report

Date issued

Dollar value of

Dollar value of

disallowed costs
recommendations
that funds be put to
better use

Explanation for no. 3:



a. Schools and Libraries Reports (including IPIA reports). This group of reports with management
decisions made more that a year ago consists of 66 reports issued as a result of audits conducted between
August 2004 and March 2008. Recovery of disallowed costs for almost all these audit reports has been
suspended pending completion of e-rate program policy reviews by the Commission and conclusion of a
Commission proceeding seeking comment from program participants on appropriate follow-up measures
for audit report findings. Any disallowed costs currently under appeal have been excluded from the dollar
value listed above.

b. High Cost Reports. This group of reports with management decisions made more that a year ago
consists of 13 reports issued as a result of audits conducted between July 2007 and March 2008.
Corrective actions are ongoing and recovery of the disallowed costs is in progress.

4.
Report on Fiscal Year 2007 Federal
9/25/2007 N/A
N/A
Information Security Management Act
(FISMA) Independent Evaluation
(Report no. IG-07-AUD-04-07)

Explanation for no. 4:

Action on most recommendations has been completed. Work on
remaining certification and accreditations is scheduled to be completed by the end of calendar year 2009,
and all mobile devices containing non-public data will be encrypted by the end of March 2010.


5.
Controls over Collection of
9/28/2007
N/A
N/A
Auctions Payments (Report No. IG-06-
AUD-10-08)

Explanation for no. 5:

The Commission plans to resolve the two remaining open recommendations in
this report with the replacement of the Commission's core financial system in 2010.

6.
Controls over the Universal
9/28/2007 N/A
N/A
Licensing System (ULS) (Report No IG-
07-AUD-02-03)

Explanation for no. 6:

Completion of corrective action on the remaining open recommendation in this
report requires conclusion of an agreement between the Commission and another federal agency. The
Commission is expecting to receive the completed ISA in December 2009.

7.
Review of FCC Wireless Network
3/27/2008
N/A
N/A
Security Controls (Report No 08-AUD-
07-03)
N/A= Not Applicable

2

Enclosure 1

Name of report

Date issued

Dollar value of

Dollar value of

disallowed costs
recommendations
that funds be put to
better use

Explanation for no. 7:

Completion of the organization security policy that addresses the use of wireless
technology was completed in October 2009 and forwarded to the IG for closeout confirmation.

8.
Report on Fiscal Year 2008 Federal
9/15/2008
N/A
N/A
Information Security Management Act
(FISMA) (Report No 08-AUD-04-02)

Explanation for no. 8:

Actions for 7 out of 27 recommendations have been completed. Work on
remaining recommendations (some of which have strategic implications, for example the implementation
of an enterprise plan of action and milestones (POA&M) program) continue. Additional areas being
particularly addressed include strengthening of information security policies and procedures; risk
assessments/certification & accreditation; access controls; data confidentiality (laptop encryption).

9.
Review of Processes for Filing
9/24/2008
N/A
N/A
Public Comments, Consumer Inquiries,
and Complaints (Report No 08-AUD-07-
04)

Explanation for no. 9:

Action on most recommendations has been completed. Four recommendations
are awaiting verification and confirmation of completion. And work on the single remaining
recommendation is ongoing, but the completion date is uncertain at this time due to technical and cost
related issues.

10. Assessment of Information
9/30/2008
N/A
N/A
Technology (IT) Project Management
(Report No 08-AUD-07-05)

Explanation for no. 10:

Action has been taken on all four recommendations. The Commission will
continue to develop and refine its project management processes addressed in the recommendations on an
ongoing basis. No firm completion date was provided for the recommendations.



Summary of Excluded Audit Reports

In accordance with 5 U.S.C. App. 3 § 5(b)(4), the Commission may exclude from the preceding
management report audit reports that are under formal administrative or judicial appeal or upon which
management has agreed to pursue a legislative solution, but the Commission must state the number of
reports in each category. As of September 30, 2009, there were 38 audit reports for which a management
decision was made more than a year ago that are under administrative appeal.
N/A= Not Applicable

3

Enclosure 2

FEDERAL COMMUNICATIONS COMMISSION
MANAGEMENT REPORT ON FINAL ACTION ON INSPECTOR GENERAL
ISSUED OR REVIEWED AUDITS WITH DISALLOWED COSTS

(For the Six-Month Period Ending September 30, 2009)



Number
of
Disallowed

Audit Reports
Costs

A. 1. Audit reports with management decisions

on which final action had not been taken

at the beginning of the period (line C minus
line D.3.of enclosure 2 for previous semiannual
report)
195
$98,797,576


2. Adjustments1 0
0


3. Audit reports with management decisions

on which final action had not been taken

at the beginning of the period (following

Adjustments from line 2 above)
195
$98,797,576

B. Audit reports on which management


decisions were made during the current
reporting period
37
$4,771,854

C. Total audit reports pending final action



during period (Total A + B)
232
$103,569,430

D. Audit reports on which action was

taken during the period



1. Recoveries



(A) Collections and offsets
70
$1,788,702



(B)

Property
0
$0

(C)

Other
0
$0

2.
Write-offs
0
$0




1 Adjustments are due to corrections or additions or audit reports that had previously been
omitted from this report.
1

Enclosure 2

3. Total 1 + 2
70
$1,788,702

E. Audit Reports Needing Final Action

At the end of the Period (C – D.3.)
1652 $101,780,7283



2 Number of audit reports is 165 instead of 162 because 3 reports had partial recovery and the
Commission is still seeking the remaining amount approved for recovery by management.
3 Of this amount, a total of $27,605,794 in 61 reports was under administrative appeal by
auditees.
2

Enclosure 3

FEDERAL COMMUNICATIONS COMMISSION
MANAGEMENT REPORT ON FINAL ACTION ON AUDITS WITH
RECOMMENDATIONS TO PUT FUNDS TO BETTER USE

(For the Six-Month Period Ending September 30, 2009)



Number of
Funds To Be Put

Audit Reports
To Better Use


A. Audit reports with management

decisions on which final action

had not been taken at the

beginning of the period

0

$0


B. Audit reports on which management

decisions were made during the
period
0

$0


C. Total audit reports pending final

action during period (Total A + B)

0

$0


D. Audit reports on which final action

was taken during the period






1. Value of recommendations


implemented (completed)

0

$0


2. Value of recommendations that


management concluded should not


or could not be implemented or

completed
0

$0



3. Total (1 + 2)

0

$0


E.
Audit reports needing final action at

the end of the period (C - D.3.)

0

$0




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