Audit of the Pension Benefit Guaranty Corporation’s Fiscal Year 2019 and 2018 Financial Statements (AUD-2020-02), issued November 15, 2019

The Office of Inspector General issued the audit report 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, 2019 and 2018, finding:

• The financial statements present fairly, in all material respects, the financial position of the Single-Employer and Multiemployer Program Funds and the results of their operations and cash flows for the years then ended;


• PBGC maintained, in all material respects, effective internal control over financial reporting as of September 30, 2019. As of September 30, 2019:


• PBGC continues to develop and execute corrective actions to remediate previously identified control deficiencies. PBGC management continues to implement certain corrective actions to enhance the valuation tool used to calculate its single largest liability and implement IT solutions to mitigate system weaknesses.


• PBGC has two significant deficiencies: (1) Controls over the Actuarial Estimates and (2) Access Controls and Configuration Management.




• An instance of potential noncompliance or other matters that are required to be reported in accordance with Government Auditing Standards.


• Specifically, in prior years CLA reported that PBGC did not record its full contractual obligation under all of its multiyear lease arrangements in potential violation of the Antideficiency Act. In FY 2019, PBGC submitted draft letters to the Office of Management and Budget (OMB) to report the violations. PBGC is awaiting finalization of OMB’s review prior to report the violations to the President, the Congress, and the Comptroller General as required.

Click here for full report.