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It is joyous in the midst of perilous times to look around upon a people united in heart, where one purpose of high resolve animates and actuates the whole; where the sacrifices to be made are not weighed in the balance against honor and right and liberty and equality. Obstacles may retard, but they cannot long prevent, the progress of a movement sanctified by its justice and sustained by a virtuous people. Reverently let us invoke the God of our fathers to guide and protect us in our efforts to perpetuate the principles which by his blessing they were able to vindicate, establish, and transmit to their posterity. With the continuance of his favor ever gratefully acknowledged, we may hopefully look forward to success, to peace, and to prosperity.
February 18, 1861
Jefferson Davis
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Opinion on the Effectiveness of IRS’ Internal Controls
In our opinion, because of the material weaknesses discussed later in this report, IRS' internal controls at September 30, 1999, were not effective in providing reasonable assurance that (1) government assets and confidential taxpayer information are appropriately safeguarded, (2) laws and regulations material to the financial statements are complied with, and (3) financial accounting and budgetary information reported by IRS is accurate, timely, and meaningful to users.
Report on Compliance With Laws and Regulations
and the Requirements of FFMIA Controls
Our
tests of compliance with selected provisions of laws and regulations disclosed two instances of noncompliance with laws and regulations
that we consider to be reportable under generally accepted government auditing standards and OMB Bulletin 98-08, as amended, Audit Requirements for Federal Financial Statements. These relate to IRS' structuring of installment agreements to collect delinquent taxes and the timing of the release of tax liens on taxpayer's property. We were unable to test compliance with the Antideficiency Act, as amended, due to the limitations on the scope of our work previously discussed. Also, we
concluded that IRS' financial management systems do not substantially comply with the following requirements of FFMIA
, which is reportable under OMB Bulletin 98-08, as amended:
* Federal Financial Management Systems Requirements,
* applicable federal accounting standards, and
* the U.S. Government Standard General Ledger (SGL) at the transaction level.
In its fiscal year 1999 Federal Managers Financial Integrity Act of 1982 (FIA) assurance statement to the Treasury, IRS also concluded that its financial management systems do not comply with FFMIA. The objective of our audit was not to provide an opinion on overall compliance with laws and regulations. Accordingly, we do not express such an opinion.
(report pages: 9 & 10)
