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Financial Details |
Message from the Chief Financial Officer

The Department of Education continued its high standard of financial management and reporting during fiscal year (FY) 2005. In this part of the Performance and Accountability Report, I have the pleasure of presenting to the President and the American people the financial details on the Department’s stewardship and management of the public funds to which we have been entrusted.

The Department’s impressive record of excellence in financial management has been a joint effort of our managers, employees, and business partners who make it a priority to ensure that the highest quality financial data is reported. Highlights of these successful efforts over the last year are as follows:

  • Earned an unqualified opinion on the principal financial statements for the fourth year in a row, demonstrating a clear pattern of financial accountability.
  • Provided unqualified assurance for the requirements of the Federal Manager’s Financial Integrity Act.
  • Awarded Presidential Award for Management Excellence in December 2004 for recognition of improved financial performance.
  • Maintained a “green” status in Financial Management on the President's Management Scorecard for the second year in a row.
  • Awarded the prestigious Certificate of Excellence in Accountability Reporting from the Association of Government Accountants for the second year in a row.
  • Continued to have no material weaknesses identified as part of our Report on Internal Control for the third year in a row.

The Department furthered its efforts to correct its two reportable conditions identified by the auditors in the Report on Internal Controls. To address the reportable condition regarding the credit reform estimation and financial reporting processes, the Department further refined the credit reform estimation processes. The Department also continued to address the other reportable condition regarding controls surrounding information systems. Specifically, the Department has ensured all systems and applications have undergone a thorough and rigorous certification and accreditation process. Furthermore, the Department established a team of technology and security experts to conduct independent verification and validation on all information systems findings in prior audits. We look forward to an even greater reliance upon our controls as a result of implementing these initiatives.

In looking forward to FY 2006, the Department established a Senior Assessment Team and specifically tasked working groups to address the expanded requirements of OMB Circular A-123, Management’s Responsibility for Internal Control. The opportunities that this examination will present for us to further review and improve upon our internal controls will continue to ensure the greatest integrity in our financial management and reporting.


/s/


Jack Martin
Chief Financial Officer
November 15, 2005