GAO Releases Report on Improvements Needed in SEC’s Internal Controls

The Government Accountability Office ("GAO") released a report identifying deficiencies in the SEC's internal controls and accounts procedures. The report noted significant deficiencies in the SEC's reporting controls over (1) budgetary resources and (2) property and equipment transactions. While neither of the deficiencies materially affected the SEC's FYE 2012 financial statements, the GAO proposed remedial measures to prevent further misstatements. Additionally, the GAO found less significant control deficiencies concerning: (1) information security, (2) accounts payable accrual methodology, (3) supervisory review and monitoring procedures over manual journal entries and (4) the review and monitoring of disgorgement and penalty transactions. The GAO also made recommendations to remedy these deficiencies.

View Report in full here (links externally to GAO website).