Government watchdog finds ‘significant deficiencies’ in CFPB’s internal controls

by Ryan Smith17 Jun 2016
A government watchdog has raised some issues about the internal controls at the Consumer Financial Protection Bureau.

The Government Accountability Office released a report this week in which it criticized some aspects of the CFPB’s internal controls and auditing procedures.

“During its audit of the Consumer Financial Protection Bureau’s (CFPB) fiscal years 2015 and 2014 financial statements, GAO identified deficiencies in CFPB’s internal control over accouting for property, equipment, and software that collectively constituted a significant deficiency in CFPB’s internal control over financial reporting,” the GAO wrote in a report to CFPB Director Richard Cordray.

“In addition, we identified deficiencies that we did not consider to be material weaknesses or significant deficiencies, either individually or collectively, but that nonetheless warrant CFPB management’s attention,” the report continued.” These control deficiencies are related to reviewing and approving financial statements.”

Those five recommendations make a total of seven for the agency, though, because – as the GAO noted – the CFPB had thus far implemented only two of the four recommendations the GAO made in its previous report.
The GAO’s latest recommendations are:
  • That the CDPB provide recurring training on how to conduct inventory of electronic equipment
  • That is provide training on how to update and maintain accurate inventory records
  • That it revise the Office of the Chief Financial Officer’s financial records to include costs by project
  • That it direct its program offices to require vendors to provide more detailed invoices
  • That it design and implement more effective procedures for the preparation of financial statements and note disclosures