As you know, OMB Bulletin No. 01-02, "Audit Requirements for Federal Financial Statements," requires auditors to perform certain agreed-upon-procedures to assist us in assessing the reasonableness of Retirement, Health Benefits, and Life Insurance withholdings and contributions. Procedure number 2 states that agencies should post employee contributions for Retirement, Health Benefits, and Life Insurance to Standard General Ledger (SGL) account 6400N. This is NOT correct -- employee contributions for Retirement, Health Benefits, and Life Insurance should be included in the charge to SGL account 6100N.

We attempted to ensure that all agency Offices of the Inspector General were aware of this error, but were not entirely successful. As a consequence, some auditors have reported to us the entirely proper posting of employee contributions to SGL account 6100N as a departure from requirements. We will disregard any such reporting we receive. If you need assistance in convincing your auditors that your are correct in posting your employee contributions for Retirement, Health Benefits, and Life Insurance to SGL account 6100N, please share this letter with them or have them call us on 202-606-0606.

The error, which was typographical, was entirely our fault, not OMB's, and we sincerely regret any concern or inconvenience that it may have or will cause you.

Robert A. Yuran Chief, Financial Policy Staff

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