Defense & Intelligence Policy, Business and Technology

DHS Financial Audit 'Identifies 6 Significant Deficiencies in Internal Control;' 3 Considered Material Weaknesses

Homeland Security Today: Although the independent public accounting firm KPMG LLP (KPMG) issued an unmodified (clean) opinion on DHS’s consolidated financial statements, and noted that the financial statements present fairly, in all material respects, DHS’s financial position as of September 30, 2016, KPMG's audit also “issued an adverse opinion on DHS’s internal control over financial reporting of its financial statements as of September 30, 2016.”

KPMG’s “report identifies six significant deficiencies in internal control; three of which are considered material weaknesses. The material weaknesses are in information technology controls and financial system functionality; financial reporting; and property, plant and equipment. The report also identifies instances of noncompliance with four laws and regulations.

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