Lessons Learned from FY 2005 Financial Statement Audit (2006-10/FA-0023)

For the second year, the OIG, in cooperation with the Chief Financial Officer (CFO), conducted a survey to identify lessons learned during the audit of the FY 2005 financial statements. After the survey responses were compiled, key stakeholders met to discuss the results and provide suggestions for improvements. Our goal was to incorporate best practices into future audits of the financial statements and improve on those practices and procedures that were not efficient or effective. Best practices identified included:

• Notice of findings reports timely notified managers in a written format of tentative audit findings and recommendations. Thus providing managers an opportunity to respond and discuss findings with the auditors before disclosure in a draft report.
• Following the theme of early reporting, the auditors also provided a copy of their internal control report to PBGC in mid-October, about a month earlier than in past years.
• Regular audit status meetings with key stakeholders were a means to provide information on audit issues, obstacles, and time lines.
• The CFO began conducting quarterly close meetings, and auditors were invited to participate in open discussion about the various financial statement accounts.

Suggestions for improvements in communications, responsibility and commitment included:

• Auditors will look for opportunities to familiarize PBGC managers and staff on the purpose, scope, and methodology of the audit.
• The CFO is committed to be accountable for preparation of the financial statements and will emphasize this accountability. The IG, along with the Clifton Gunderson's managing partner, will emphasize their accountability for the audit of the statements.
• There will be a single Provided by Client list for all documents and a single Management Letter report, rather than separate lists and reports for financial and IT documents and findings.