WASHINGTON (5/5/14)--Internal control issues increase the risk that the Consumer Financial Protection Bureau may not detect and correct errors in its own financial statements, the U.S. Government Accountability Office reported last week.
The GAO analysis of the CFPB's fiscal 2012 and 2013 statements and other documents found that the bureau did not effectively design or implement:
Internal control over its year-end accrual process to ensure accounts payable amounts recorded were complete and accurate; and
Controls to ensure accurate and complete recording of its property and equipment transactions.
To address these issues, the GAO recommended that the bureau:
Strengthen the design and implementation of control procedures to require the review of tracking schedules, invoices, obligating documents and other underlying supporting documents;
Design and implement control procedures to ensure that property and equipment costs, including costs associated with internal-use software, are properly capitalized or expensed as appropriate;
Develop detailed guidance and provide training for contracting officer representative (CORs) to further assist them in identifying and estimating accruals, including examples of expenses that should and should not be accrued at the end of an accounting period and how to calculate amounts to be accrued; and
Strengthen the design and implementation of control procedures regarding the review of the accounts payable estimates to include variance analysis of calculations and comprehensive review of obligating documents, invoices, and the CORs' accrual calculations.
The GAO said the CFPB has agreed with these recommendations, and has implemented or is in the process of implementing the recommendations.
For the full GAO report, use the resource link.