In written comments, the FBI said it agreed with the recommendations and is working to implement them.

"According to the audit, the FBI has made 'good progress' in addressing the concerns surrounding staffing, information sharing, earned value management, cost tracking and controls, and documentation that were identified in the first audit report," the FBI said in a statement.

"Phase II of the Sentinel program is expected to cost approximately $157 million. As part of the President's FY 2007 budget request, $100 million in funding was requested. The balance of $57 million has long been identified from existing FBI balances and will not impact operational programs. The total project cost for Sentinel was budgeted at a cost of $425 million and that figure remains the same. Characterizations to the contrary are misleading. At this time, Sentinel is within cost and schedule."