Financial Audit: Bureau of Consumer Financial Protection's Fiscal Years 2015 and 2014 Financial Statements

What GAO Found

GAO found (1) the Bureau of Consumer Financial Protection's, known as the Consumer Financial Protection Bureau (CFPB), financial statements as of and for the fiscal years ended September 30, 2015, and 2014, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) although internal controls could be improved, CFPB maintained, in all material respects, effective internal control over financial reporting as of September 30, 2015; and (3) no reportable noncompliance for fiscal year 2015 with provisions of applicable laws, regulations, contracts, and grant agreements GAO tested. During fiscal year 2015, CFPB took significant actions to address the internal control deficiencies related to the material weakness in CFPB's internal control over reporting of accounts payable that GAO reported in fiscal year 2014. These actions by CFPB sufficiently addressed the deficiencies in its determination and reporting of accounts payable accruals such that GAO no longer considers the remaining control deficiencies in this area, individually or collectively, to represent a material weakness or a significant deficiency as of September 30, 2015. GAO also found that although CFPB took actions to attempt to address a significant deficiency in internal control over accounting for property and equipment that GAO first reported in fiscal year 2013, GAO's fiscal year 2015 audit identified continuing and new deficiencies in this area. These deficiencies collectively constituted a significant deficiency in CFPB's internal control over financial reporting that merits attention by those charged with governance of CFPB.

In commenting on a draft of this report, the Director of CFPB stated that he was pleased to receive an unmodified audit opinion on CFPB's fiscal years 2015 and 2014 financial statements. The Director also concurred with the significant deficiency over reporting of property, equipment, and software that GAO reported, and added that CFPB will continue to work to enhance its system of internal control and ensure the reliability of its financial reporting.

Why GAO Did This Study

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Full-Year Continuing Appropriations Act, 2011, both require GAO to annually audit CFPB's financial statements. This report responds to these requirements.

For more information, contact J. Lawrence Malenich at (202) 512-3406 or malenichj@gao.gov.