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Tuesday, June 14, 2016

GAO Study: Improvements Needed in CFPB Internal Controls and Accounting

During its audit of the CFPB’s fiscal years 2015 and 2014 financial statements, the Government Accountability Office (GAO) identified deficiencies in the bureau’s internal control over accounting for property, equipment and software that collectively constituted a significant deficiency in the CFPB’s internal control over financial reporting.

Specifically, GAO found that the CFPB did not effectively design or implement controls to assure accurate and timely classification and recording of software costs, nor did the bureau maintain ongoing accuracy and completeness of property and equipment inventory records. GAO also identified deficiencies related to reviewing and approving financial statements; however, it did not consider them to be material weaknesses or significant deficiencies, either individually or collectively.

The CFPB has made corrective actions for two of the four recommendations from GAO’s prior management report, which remained open at the beginning of GAO’s fiscal year 2015 audit. As a result, the CFPB has seven financial audit-related GAO recommendations to address: the previous two open recommendations and the five recommendations GAO is making in this report.

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