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November 16, 2020 
TO: EMILY W. MURPHY ADMINISTRATOR (A) 
GERARD BADORREK CHIEF FINANCIAL OFFICER (B) 
FROM: CAROL F. OCHOA INSPECTOR GENERAL (J) 
SUBJECT: Independent Auditors’ Report, U.S. General Services Administration’s Financial Statements – Fiscal Years 2020 and 2019, November 13, 2020 
The Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, requires the U.S. General Services Administration’s (GSA’s) Inspector General, or an independent external auditor, as determined by the Inspector General, to audit GSA’s consolidated financial statements. Under a contract awarded by GSA and monitored by my office, KPMG LLP (KPMG), an independent public accounting firm, audited GSA’s consolidated, Acquisition Services Fund, and Federal Buildings Fund financial statements as of September 30, 2020, and 2019. The contract required KPMG to perform the audit in accordance with U.S. generally accepted government auditing standards; the Office of Management and Budget’s Bulletin No. 19-03, Audit Requirements for Federal Financial Statements; and the U.S. Government Accountability Office Financial Audit Manual, which is maintained by the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency. 
The Fiscal Year 2020 audit resulted in an unmodified opinion on the financial statements. An unmodified opinion means that the financial statements are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. 
In its audit of GSA’s Fiscal Years 2020 and 2019 financial statements, KPMG found: 
• The consolidated, Acquisition Services Fund, and Federal Buildings Fund financial statements were fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles; 
• No material weaknesses or significant deficiencies in internal control over financial reporting;


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• No instances in which GSA’s financial management systems did not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996; and
• No reportable noncompliance with provisions of laws tested.
Details regarding KPMG’s conclusions are included in the “Opinions,” “Internal Control over Financial Reporting,” and “Compliance and Other Matters” sections of this report. Also, on November 13, 2020, KPMG issued a separate Management Letter to GSA regarding other, less significant matters that came to its attention during the audit.
KPMG is responsible for the attached independent auditors’ report and the opinions and conclusions expressed therein. My office is responsible for technical and administrative
oversight regarding KPMG’s performance under the terms of the contract.
To fulfill our oversight responsibilities under the Inspector General Act of 1978, as amended, to assure that KPMG complied with U.S. generally accepted government auditing standards, we performed a moderate level of review, which included:
• Evaluating the independence, objectivity, and qualifications of the firm and the auditors;
• Reviewing KPMG’s audit approach and planning documents;
• Monitoring the progress of the audit at key milestones;
• Performing periodic reviews of KPMG’s workpapers;
• Attending key meetings with GSA management and KPMG auditors to discuss audit
progress, findings, and recommendations; and
• Performing other procedures that we deemed necessary.
In connection with the contract, we reviewed KPMG’s report and related documentation and inquired of its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on GSA’s financial statements, conclusions about the effectiveness of internal control over financial reporting, conclusions on whether GSA’s financial management systems substantially complied with the requirements of the Federal Financial Management Improvement Act, or opinions on compliance with laws and other matters. KPMG is responsible for the attached independent auditors’ report dated November 13, 2020, and the conclusions expressed therein. However, our review disclosed no instances where KPMG did not comply, in all material respects, with U.S. generally accepted government auditing standards.
I appreciate the courtesies and cooperation your office has extended to KPMG and my staff during the audit. If you have any questions, you may contact me at (202) 501-0450. If your staff needs any additional information, they may also contact R. Nicholas Goco, Assistant Inspector General for Auditing, at (202) 501-2322.

Attachment


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KPMG LLP
Suite 12000
1801 K Street, NW
Washington, DC 20006

KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.

Independent Auditors’ Report
Administrator and Inspector General United States General Services Administration:

Report on the Financial Statements
We have audited the accompanying consolidated financial statements of the U.S. General Services Administration (GSA), which comprise the consolidated balance sheets as of September 30, 2020 and 2019, and the related consolidated statements of net cost and changes in net position, and combined statements of budgetary resources for the years then ended, and the related notes to the consolidated financial statements
(hereinafter referred to as “consolidated financial statements”).
We have also audited the accompanying financial statements of the Acquisition Services Fund (ASF), which comprise the balance sheets as of September 30, 2020 and 2019, and the related statements of net cost and changes in net position, and combined statements of budgetary resources for the years then ended (presented in Schedules 1-4), and the related notes to the ASF financial statements.
We have also audited the accompanying financial statements of the Federal Buildings Fund (FBF), which comprise the balance sheets as of September 30, 2020 and 2019, and the related statements of net cost and changes in net position, and combined statements of budgetary resources for the years then ended (presented in Schedules 1-4), and the related notes to the FBF financial statements.
Management’s Responsibility for the Financial Statements 
Management is responsible for the preparation and fair presentation of these consolidated, ASF, and FBF financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated, ASF, and FBF financial statements that are free from material  misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated, ASF, and FBF financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, in accordance with the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and in accordance  with Office of Management and Budget (OMB) Bulletin No. 19-03, Audit Requirements for Federal Financial Statements.Those standards and OMB Bulletin No. 19-03 require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated, ASF, and FBF financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated, ASF, and FBF financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated, ASF, and FBF financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated, ASF, and FBF financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express


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no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated, ASF, and FBF financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the U.S. General Services Administration as of September 30, 2020 and 2019, and its net costs, changes in net position, and budgetary resources for the years then ended in accordance with U.S. generally accepted accounting principles.
In our opinion, the ASF financial statements referred to above present fairly, in all material respects, the financial position of the Acquisition Services Fund as of September 30, 2020 and 2019, and its net costs, changes in net position, and budgetary resources for the years then ended in accordance with U.S. generally
accepted accounting principles.
In our opinion, the FBF financial statements referred to above present fairly, in all material respects, the financial position of the Federal Buildings Fund as of September 30, 2020 and 2019, and its net costs, changes in net position, and budgetary resources for the years then ended in accordance with U.S. generally accepted accounting principles.
Other Matters
Interactive Data
Management has elected to reference to information on websites or other forms of interactive data outside the GSA’s 2020 Agency Financial Report to provide additional information for the users of its financial statements. Such information is not a required part of the basic consolidated, ASF, and FBF financial statements or supplementary information required by the Federal Accounting Standards Advisory Board. The information on these websites or the other interactive data has not been subjected to any of our auditing procedures, and accordingly we do not express an opinion or provide any assurance on it.
Required Supplementary Information
U.S. generally accepted accounting principles require that the information in the Management’s Discussion and Analysis and Required Supplementary Information sections referenced in the Table of Contents be presented to supplement the basic consolidated, ASF, and FBF financial statements. Such information, although not a
part of the basic consolidated, ASF, and FBF financial statements, is required by the Federal Accounting Standards Advisory Board who considers it to be an essential part of financial reporting for placing the basic consolidated, ASF, and FBF financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic consolidated, ASF, and FBF financial statements, and other knowledge we obtained during our audits of the basic consolidated, ASF, and FBF financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 
Supplementary and Other Information
Our audits were conducted for the purpose of forming opinions on the basic consolidated financial statements as a whole, ASF financial statements as a whole, and FBF financial statements as a whole. The information in  


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the Other Funds and Intra-GSA Eliminations sections in the consolidating and combining financial statements in Schedules 1 through 4 (herein referred to as “consolidating information”), the About this Report, the Table of Contents, Frequently Asked Questions, Letter from the Administrator, How GSA Benefits the Public, Letter from the Chief Financial Officer, Inspector General’s Transmittal of the Independent Auditors’ Report, and Other Information sections of GSA’s 2020 Agency Financial Report is presented for purposes of additional analysis and is not a required part of the basic consolidated, ASF, and FBF financial statements.
The consolidating information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic consolidated financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic consolidated financial statements or to the basic consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the consolidating information is fairly stated in all material respects in relation to the basic consolidated financial statements as a whole.
The information in the About this Report, the Table of Contents, Frequently Asked Questions, Letter from the Administrator, How GSA Benefits the Public, Letter from the Chief Financial Officer, Inspector General’s Transmittal of the Independent Auditors’ Report, and Other Information sections of GSA’s 2020 Agency Financial Report has not been subjected to the auditing procedures applied in the audits of the basic consolidated, ASF, and FBF financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
Internal Control over Financial Reporting
In planning and performing our audits of the consolidated, ASF, and FBF financial statements as of and for the year ended September 30, 2020, we considered GSA’s, ASF’s, and FBF’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the consolidated, ASF, and FBF financial statements, but not for the purpose of expressing an opinion on the effectiveness of GSA’s, ASF’s, and FBF’s internal control. Accordingly, we do not express an opinion on the effectiveness of GSA’s, ASF’s, and FBF’s internal control. We did not test all internal controls relevant to operating objectives as broadly defined by the Federal Managers’ Financial Integrity Act of 1982.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audits we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.


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Compliance and Other Matters
As part of obtaining reasonable assurance about whether GSA’s consolidated, ASF’s and FBF’s financial statements as of and for the year ended September 30, 2020 are free from material misstatement, we performed tests of their compliance with certain provisions of laws, regulations, and contracts, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audits, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or OMB Bulletin No. 19-03.

We also performed tests of GSA’s compliance with certain provisions referred to in Section 803(a) of the Federal Financial Management Improvement Act of 1996 (FFMIA). Providing an opinion on compliance with FFMIA was not an objective of our audit of the consolidated financial statements, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances in which GSA’s financial management systems did not substantially comply with the (1) Federal financial management systems requirements, (2) applicable Federal accounting standards, and (3) the United States Government Standard General Ledger at the transaction level.
Purpose of the Other Reporting Required by Government Auditing Standards
The purpose of the communication described in the Other Reporting Required by Government Auditing Standards section is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of GSA’s, ASF’s, and FBF’s internal control or compliance. Accordingly, this communication is not suitable for any other purpose. 

[Signed KPMG LLC]
Washington, DC
November 13, 2020