X

GAO Urges CFPB to Improve Internal Controls and Accounting Procedures

Steven Lofchie Commentary by Steven Lofchie

In a recent management report, the Government Accountability Office ("GAO") recommended improvements to the internal controls and accounting procedures of the Consumer Financial Protection Bureau ("CFPB"). GAO determined that the CFPB had not implemented effectively internal controls over the recording of its property, equipment and software since GAO's fiscal year 2013 financial statement audit of the agency.

GAO advised the CFPB that if it continued to make such errors, its financial statements could be misstated quarterly and at year-end, which, in turn, could (i) prevent management from making informed decisions about the allocation of resources, and (ii) provide misleading information to the users of the financial statements about CFPB's financial position.

GAO recommended that the CFPB:

  • direct the program offices to require vendors to provide detailed invoices with costs broken out by project; and

  • direct the CFO to update the Office of the Chief Financial Officer's financial records to include costs by project.

Commentary

Steven Lofchie
Steven Lofchie

If the CFPB's poor financial reporting record doesn’t seem ironic enough, consider this: the statute that authorizes the CFPB does not give Congress direct control over the CFPB's budget.

Primary Sources

  1. GAO Management Report: "Improvements Needed in CFPB’s Internal Controls and Accounting Procedures"
  2. GAO Financial Audit of CFPB (FY 2013)

Related Articles

  • Senate Banking Committee Reviews Recent CFPB Activity (with Delta Strategy Group Summary)

    The Senate Banking Committee reviewed actions taken by the Consumer Financial Protection Bureau in enforcement, fair lending, arbitration clauses, payday loans and exemptions. In a separate hearing, the Senate Banking Committee postponed SEC nominations and questioned CFPB Director Richard Cordray about the CFPB's Semi-Annual Report to Congress.

  • CFPB Report Details 2015 Fiscal Year Activities

    The Consumer Financial Protection Bureau ("CFPB") issued a Report summarizing its activities from October 1, 2014 - September 30, 2015, the Bureau's 2015 fiscal year. The Report was issued pursuant to Dodd-Frank Section 1017(e)(4) ("Funding; Penalties and Fines").

Tags

Regulated Activities
Accounting and Audit
Regulated Entities
Regulatory Agencies
Jurisdiction
US - Federal
Organization
Research Agencies / Think Tanks / Academics