Audit of the Pension Benefit Guaranty Corporation's Fiscal Year 2011 and 2010 Financial Statements

The Office of Inspector General contracted with Clifton Gunderson LLP, an independent certified public accounting firm, to audit 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, 2011 and 2010. In their audit of PBGC's Single-Employer and Multiemployer Program Funds, Clifton Gunderson found:

• 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, 2011. Serious internal control weaknesses in PBGC's programs and operations resulted in three material weaknesses: (1) entity-wide security program planning and management, (2) access controls and configuration management, and (3) Benefits Administration and Payment Department operations. A significant deficiency was also identified in integrated financial management 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.