Management Report: Improvements Needed in FDIC's Internal Control Over Contract-Payment Review Processes [open pdf - 352KB]
From the Document: "On February 18, 2021, we issued our report on the results of our audits of the 2020 and 2019 financial statements of the two funds the Federal Deposit Insurance Corporation (FDIC) administers: the Deposit Insurance Fund (DIF) and the Federal Savings and Loan Insurance Corporation Resolution Fund (FRF). Our report states we identified deficiencies in FDIC's controls over contract-payment review processes. These deficiencies collectively represent a significant deficiency in FDIC's internal control over financial reporting that merits attention by those charged with FDIC governance. Although it did not affect our opinion on the 2020 financial statements of the DIF and the FRF, because of this significant deficiency, misstatements may have occurred in unaudited financial information FDIC reported internally and externally. The purpose of this report is to present the deficiencies we identified during our audit testing of FDIC's 2020 non-payroll operating expenses internal controls, and our recommendations related to these deficiencies. GAO [Government Accountability Office] had no prior recommendations to FDIC related to the financial statement audit or internal controls over financial reporting. This report is intended for FDIC management use."
Government Accountability Office: http://www.gao.gov/