The Government Accountability Office has asked the Consumer Financial Protection Bureau to improve some of its accounting procedures and internal controls, according to a new report.

The recommendations from the GAO are intended to improve the CFPB’s oversight and controls and bring the CFPB into compliance with its own policies, Standards for Internal Control in the Federal Government, federal accounting standards or a combination thereof, according to the report.

According to the GAO, a Dec. 16, 2013, report containing its audit opinion on the CFPB’s fiscal years 2013 and 2012 financial statements identified two substantial deficiencies in the CFPB's internal control over financial reporting related to its year-end accounts payable accruals and recorded property and equipment amounts.

“These deficiencies increase the risk that the CFPB may not detect and correct errors in time to prevent misstatement of the financial statements,” the report noted.

The GAO specifically directs the CFPB’s chief financial officer to develop detailed guidance and provide training for contracting officers to further assist them in identifying and estimating accruals. The CFPB also should improve the design and implementation of control procedures regarding the review of the accounts payable estimates.

In a letter responding to the report, CFPB Director Richard Cordray wrote, “We concur with the draft recommendations from the GAO intended to improve management’s oversight and controls as well as to minimize risk to the bureau.”

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