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USDA’s Consolidated Financial Statements for Fiscal Years 2021 and 2020

OIG audited USDA’s consolidated financial statements for fiscal years 2021 and 2020.

Audit Report: 50401-0020-11
Published: 11/15/2021
View Report PDF
Fast Facts

This report presents the results of our audits of U.S. Department of Agriculture’s (USDA) consolidated financial statements for the fiscal years ending September 30, 2021, and 2020. This report contains an unmodified opinion on the financial statements, as well as the results of our assessments of USDA’s internal control over financial reporting and compliance with laws and regulations.

Objective

The objectives of our audits were to review USDA’s consolidated financial statements for fiscal years 2021 and 2020. Specifically, we determined whether: (1) the consolidated financial statements present information fairly, in all material respects, and in accordance with generally accepted accounting principles; (2) USDA met the internal control objectives over financial reporting; (3) USDA complied with applicable laws and regulations; and (4) the Agency Financial Report is materially consistent with the information in the consolidated financial statements.

What OIG Found

U.S. Department of Agriculture (USDA) received an unmodified opinion from the Office of Inspector General’s (OIG) audits of USDA’s consolidated financial statements. We determined that the Department’s financial statements present fairly USDA’s financial position as of September 30, 2021 and 2020, in all material respects, and were prepared in accordance with accounting principles generally accepted in the United States of America. This includes the agency’s net costs, changes in net position, and statements of budgetary resources and related notes to the consolidated financial statements.

Our consideration of USDA’s internal control over financial reporting identified three significant deficiencies: (1) Improvements are needed by three component agencies in their overall financial
management; (2) USDA needs to improve its information technology security and controls, as many longstanding weaknesses remain; and (3) USDA and Rural Development need to improve controls over unliquidated obligations. We determined the first two deficiencies
are material weaknesses. Additionally, our review of compliance with laws and regulations identified noncompliance with the Federal Financial Management Improvement Act of 1996, the Antideficiency Act, and the Payment Integrity Information Act of 2019.

The Department concurred with our findings