Press Release

For Immediate Release
January 10, 2008

Washington D.C.
FBI National Press Office
(202) 324-3691

Response to Inspector General Audit of FBI Management of Confidential Case Funds and Telecommunications Costs

FBI Assistant Director John Miller issued the following response to the Office of the Inspector General's report entitled, The Federal Bureau of Investigation's Management of Confidential Case Funds and Telecommunications Costs:

"The FBI is confident that the Department of Justice effort to create a Unified Financial Management System for all DOJ agencies will greatly strengthen oversight and controls over financial programs, including confidential case funds and the related costs associated with telecommunications services. While there is widespread agreement that the current financial management system, first introduced in the 1980's, is inadequate, the FBI will not tolerate financial mismanagement, or worse, and is addressing the issues identified in the audit. Every effort is being made to either implement the recommendations or otherwise put in place corrective actions to ensure appropriate oversight.

“While in a few instances, late payment of telephone bills resulted in interruptions of the timely delivery of surveillance results, these interruptions were temporary, and in our assessment, none of those cases were significantly affected."

"Despite the shortcomings of an existing financial management system that provides a limited level of detail, when coupled with other recording keeping systems, the FBI has consistently maintained unqualified financial statement audit opinions issued by the accounting firm KPMG."

To view the full OIG report online, including the FBI's actions addressing the OIG's recommendations, go to the following address:

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