Report Contents
To the U.S. Agency for Global Media Chief Executive Officer and the Senior Official Performing the Duties of the Inspector General of the U.S. Department of State:
Kearney & Company, P.C. (referred to as “we” hereafter), has audited the financial statements of the U.S. Agency for Global Media (USAGM) as of and for the year ended September 30, 2020, and has issued our report thereon, dated November 16, 2020. 1 In planning and performing our audit of USAGM’s financial statements, we considered USAGM’s internal control over financial reporting and USAGM’s compliance with certain provisions of applicable laws, regulations, contracts, and grant agreements. Our auditing procedures were designed for the purpose of expressing an opinion on the financial statements and not to provide assurances on internal control or compliance. Accordingly, we do not express an opinion on the effectiveness of USAGM’s internal control over financial reporting or on USAGM’s compliance with certain provisions of applicable laws, regulations, contracts, and grant agreements.
During our audit, we noted one matter related to internal control over financial reporting that we considered to be a significant deficiency and certain matters relating to compliance that we considered to be reportable under auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget Bulletin No. 19-03, “Audit Requirements for Federal Financial Statements.” These items are not repeated in this letter because they are explained in detail in our report on USAGM’s FY 2020 financial statements.
Our procedures were designed primarily to enable us to form an opinion on USAGM’s financial statements and therefore may not have identified all internal control weaknesses and instances of noncompliance that may exist. Although not considered to be material weaknesses, significant deficiencies, or reportable instances of noncompliance, we noted certain other matters involving internal control, operations, and noncompliance. These findings are summarized in Appendix A and are intended to assist USAGM in strengthening internal controls and improving operating efficiencies. Comments from USAGM management on this report are presented in Appendix B.
We appreciate the courteous and professional assistance provided by USAGM personnel during our audit. These findings were discussed in detail with appropriate USAGM officials.