CFPB Accounting Significantly Deficient: GAO Report
The report followed up and detailed a Dec. 13, 2013 GAO audit that revealed significant deficiencies.
Specifically, the report found CFPB failed to develop internal controls over its yearend accrual process to ensure accounts payable amounts recorded were complete and accurate. The CFPB also failed to develop and implement controls to ensure accurate and complete recording of its property and equipment transactions.
“These deficiencies increase the risk that the CFPB may not detect and correct errors in time to prevent misstatement of the financial statements,” GAO wrote.
The GAO recommended asking the agency's office of the chief financial officer to develop detailed guidance and provide training for the agency's contracting staff to further assist them in identifying and estimating accruals. That training would include 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.
The GAO also said the CFBP should strengthen its design and implementation of control procedures to review accounts payable, as well as equipment furniture and supply expenses.