The Consumer Financial Protection Bureau’s (CFPB) financial statements and related internal controls recently came under scrutiny from legislators in the House and Senate. However, the Government Accountability Office (GAO) found relevant materials pertaining to these statements to be reliable and its controls effective.
The GAO also published an update on its 60 recommendations to the bureau over the years on how it may improve its operations.
“Since 2011, GAO has found that CFPB’s financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles,” the GAO stated. “In addition, GAO has not identified any reportable noncompliance with provisions of applicable laws, regulations, contracts, or grant agreements it tested. In all but one annual audit, GAO found that CFPB maintained, in all material respects, effective internal control over financial reporting. In November 2014, GAO reported that CFPB’s internal control over financial reporting was not effective for fiscal year 2014 because of a material weakness in internal control over the reporting of accounts payable.
“GAO found that CFPB took significant actions in fiscal year 2015 that sufficiently addressed the deficiencies related to the material weakness,” the opinion further explained. “GAO also identified deficiencies that collectively constituted significant deficiencies in CFPB’s internal control over financial reporting in fiscal years 2013 through 2016. CFPB addressed these issues.”
The GAO’s performance audits over the years have resulted in more than 60 recommendations to the CFPB for improvements. As of this most recent report, 15 remained open. The GAO stated these open recommendations related to issues such as workforce planning and goals and measures related to financial technology, its regulatory coordination around the risks associated with blockchain-related products and services, its fair lending activities, and the oversight of consumer reporting agencies.