Summary of Internal Control Issues Over the Peace Corps' Financial Reporting

Update policies and procedures to clarify the roles of all responsible offices and establishtimelines in accordance with the SFFAS No. 6 for proper recording of additions and disposal ofassets in Sunflower and the Fixed Asset module. The updated roles should clearly establish theauthority to make final determinations when discrepancies of opinions occur.

Enhance the reconciliations of the source systems and Fixed Asset module to ensure thereconciliations take into consideration the asset status in the source system (assets with disposedstatus should be removed from Odyssey) and the asset value (it should agree in both systems).When differences are identified, they should be investigated and resolved within a timely manner.

Update policies and procedures to clarify that OCFO is ultimately responsible for determining ifassets, including IT assets, meet the capitalization threshold in both Fixed Asset Module andtracking systems (e.g., Sunflower and VMIS).

Update the procedures on how Bulk Assets are recorded as separate assets to make them easilyidentifiable in Sunflower.

Review purchase orders monthly for orders over the threshold that could have beenmiscategorized.