Though the audit of the NCUA released yesterday said the agency's finances were accurate, the report found material weaknesses in its reporting and documentation methods.
Many of the problems stem from efforts to monitor the agency's rescue of two corporate credit unions last year.
The NCUSIF "does not have sufficiently comprehensive policies and procedures that document control activities and monitoring functions that should be embedded and/or performed within the financial accounting and reporting process," according to the KPMG report.
The agency lacks adequate staffing with the necessary expertise and needs to improve "the overall core competencies of key financial management and personnel," according to the audit.
In response, the agency promised to "review and refine" its internal control procedures and promised to hire additional staff to make up for some of the gaps in expertise.