Administration
Audit of the Pension Benefit Guaranty Corporation's Fiscal Year 2014 and 2013 Financial Statements (AUD-2015-2 /FA-14-101-2), issued November 14, 2014
The Office of Inspector General issued the audit of the financial statements of the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC) as of and for the years ended September 30, 2014 and 2013 finding:
- The financial statements were presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America.
- PBGC did not have effective internal control over financial reporting (including safeguarding assets) and compliance with laws and regulations and its operations as of September 30, 2014, resulting in an adverse opinion on internal control.
- Serious internal control weaknesses in PBGC's programs and operations resulted in the continued existence of three Material Weaknesses for (1) entity-wide security program planning and management, (2) access controls and configuration management; and (3) Benefits Administration and Payment Department operations.
- New Significant Deficiencies were also identified in (1) financial reporting and (2) the calculation of the Present Value of Nonrecoverable Future Financial Assistance liability.
- Closure of the Significant Deficiency related to the integration of financial systems.
- PBGC did not determine the fair market value of plan assets at the date of plan termination in accordance with the regulation established at Title 29 of the Code of Federal Regulation Part 4044.41(b) in certain instances.
