Report on Internal Controls Related to the Pension Benefit Guaranty Corporation's Fiscal Year 2014 and 2013 Financial Statements Audit (AUD-2015-3 /FA-14-101-3), issued November 14, 2014
The Office of Inspector General issued an audit of the internal controls over financial operations for the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC).
This report provides a more detailed discussion of the specifics underlying the adverse opinion on internal control over financial reporting reported in the internal control section of the combined Independent Auditor's Report dated November 14, 2014 (AUD-2015-2/FA-14-101-2). We reported:
- 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 identified in (1) financial reporting and (2) the calculation of the Present Value of Nonrecoverable Future Financial Assistance liability.
- Closure of the previously reported Significant Deficiency related to the integration of financial systems.
The report includes 48 recommendations for FY 2014, 41 are new recommendations and 7 represent reclassifications from previous issued OIG reports.