Semiannual Report to Congress (SARC 47-49)
April 1, 2012 - September 30, 2012, October 1, 2012 - March 31, 2013 and April 1, 2013 - September 30, 2013

This consolidated Semiannual Report to Congress summarizes the activities and accomplishments of our office for three periods: April 1, 2012 – September 30, 2012, October 1, 2012 – March 31, 2013, and April 1, 2013 - September 30, 2013. During these reporting periods, our work addressed a wide range of issues within the Corporation, including:

• We raised our concerns about the large number of open audit recommendations, including those relating to three material weaknesses, many of which were quite old and for which conditions were exacerbating:
• At the end of 9/30/12, there were 183 open recommendations;

• At the end of 3/31/13, there were 158; and

• As of 9/30/13, there were 172.

• We issued the 20th consecutive unqualified opinion on PBGC's financial statements. For the fourth year, we reported an adverse opinion on internal controls based on three material weaknesses: enterprise-wide security program planning and management; access controls and configuration management; and Benefits Administration and Payment Department operations.
• We completed 7 investigations, resolved 129 complaints, and had four additional cases accepted for prosecution.
• We issued the last in a series of reports in response to a Congressional request concerning PBGC's termination of the National Steel Plans, determining that PBGC acted lawfully but accepted poor quality work from contractors
.
• We issued a Management Advisory Report alerting PBGC that it lacked documentation underlying actuarial calculations in a statutory report it issued and that procedures and internal controls did not exist.
• In response to a Congressional request, we conducted testing of PBGC's re-valuation of the assets of United Airlines terminated pension plans and concluded PBGC's latest contractor properly valued the assets we tested
.
• We issued an Alert Memorandum to the Chief Information Officer (CIO) that PBGC did not follow its incident response policy in investigating and mitigating the disclosure of sensitive PBGC documents and emails when a senior PBGC leader had transmitted this information to a personal email and that email account was hacked.