GAO Report: SEC's Fiscal Years 2013 and 2012 Financial Statements and Internal Controls

Pursuant to Dodd-Frank, the GAO conducted its annual audit of the financial statements of the SEC and its Investor Protection Fund ("IPF"). Dodd-Frank Section 963 ("Annual Financial Controls Audit") requires that (1) the SEC annually submit a report to Congress describing management's responsibility for internal control over financial reporting and assessing the effectiveness of such internal control during the fiscal year, (2) the SEC Chairman and Chief Financial Officer attest to the SEC's report and (3) the GAO attest to and report on the assessment made by the SEC.

In the report linked below, the GAO found the following:

1. the SEC and its IPF financial statements are presented fairly in accordance with U.S. generally accepted accounting principles;
2. the SEC maintained effective internal control over financial reporting as of September 30, 2013, although internal control deficiencies exist that merit attention by those charged with governance; and
3. no reportable noncompliance in fiscal year 2013 with the provisions of the applicable laws, regulations, contracts and grant agreements that the GAO tested.

The SEC's Chair added that the SEC will focus on the significant deficiency that the GAO reported in 2013 in the area of information security.

See: GAO Report.