Administration
Audit of the Pension Benefit Guaranty Corporation’s Fiscal Year 2016 and 2015 Financial Statements (AUD-2017-2 /FA-16-110-1), issued November 15, 2016
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, 2016 and 2015 finding:
- The financial statements were presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. This is the 24th consecutive unmodified financial statement audit opinion.
- PBGC maintained, in all material respects, effective internal control over financial reporting as of September 30, 2016.
- Serious internal control weaknesses in PBGC’s programs and operations include four significant deficiencies: (1) Controls over the Present Value of Future Benefit (PVFB) Liability, (2) Present Value of Nonrecoverable Future Financial Assistance (PV NFFA), (3) Entity-Wide Security Program Planning and Management, and (4) Access Controls and Configuration Management).
- During FY 2016, we observed improvements to the internal controls within PBGC operations that impacted long-standing control deficiencies reported in previous years. These improvements led to a change in classification of a previously reported material weakness in controls over the PVFB liability to a significant deficiency.
- Instances of noncompliance or other matters that are required to be reported in accordance with Government Auditing Standards.
- Antideficiency Violation: On August 23, 2016, PBGC reported a violation of 31 U.S.C, 1342 in connection with voluntary services of an independent subcontractor.
- Potential Antideficiency Violation: PBGC maintains operating leases for all office locations and its Continuity of Operations Plan (COOP) site. However, PBGC did not record its full contractual obligation under its current multiyear lease arrangements.
