This story appeared in Bank Digest.
The Government Accountability Office has issued a report identifying improvements to be made in the Consumer Financial Protection Bureau's internal controls and accounting procedures. In its November 2015 audit of the CFPB's financial statements for fiscal years 2015 and 2014, the GAO had identified deficiencies in the bureau's internal control over accounting for property, equipment, and software that collectively constituted a significant deficiency in the bureau's internal control over financial reporting. The GAO also identified deficiencies related to reviewing and approving financial statements that it did not consider to be material weaknesses or significant deficiencies but that it believes warrant the attention of CFPB management.
The purpose of the current report was to (1) present additional information regarding the significant deficiency identified in the GAO's November 2015 financial audit report, along with related recommendations; (2) communicate other less significant deficiencies identified but not reported during the GAO's fiscal year 2015 audit; and (3) provide the status of the GAO's prior recommendations reported in its May 2, 2014, management report to the CFPB.
The report makes five recommendations to address the deficiencies identified by the GAO during its fiscal year 2015 CFPB audit. The bureau stated that it agreed with the recommendations the GAO made in the report and has implemented or is in the process of implementing actions to address the issues the GAO identified.