Federal Housing Finance Agency: Improvements Needed in Controls over Management Reviews and Information Systems Access
| Report Type |
Reports and Testimonies |
| Report Date |
May 9, 2024 |
| Release Date |
May 9, 2024 |
| Report No. |
GAO-24-107219 |
Summary:
What GAO Found
During its audits of the Federal Housing Finance Agency’s (FHFA) fiscal year 2023 consolidated financial statements, GAO identified several deficiencies in FHFA’s internal controls. Although these control deficiencies did not negatively affect GAO’s overall audit opinion on FHFA’s consolidated financial statements or internal controls over financial reporting, they nonetheless warrant the attention of FHFA management.
Of the control deficiencies it identified, GAO considered one—which was related to FHFA not performing effective reviews of the draft consolidated financial statements—to be a significant deficiency when combined with a related FHFA Office of Inspector General control deficiency. Other deficiencies GAO identified were important but less critical. For example, FHFA did not properly remove systems access for separated employees in accordance with established procedures. By addressing these deficiencies, FHFA can make it more likely that agency management and employees will prevent, or detect and correct, misstatements in financial reporting.
Why GAO Did This Study
In November 2023, GAO reported on the results of its audits of FHFA’s consolidated financial statements for fiscal years 2023 and 2022. Although GAO found that FHFA had maintained effective internal control over financial reporting as of September 30, 2023, GAO did identify some deficiencies in FHFA’s internal controls. The purpose of this report is to present (1) the internal control deficiencies GAO identified during its fiscal year 2023 audit and (2) the status of FHFA’s corrective actions to address open recommendations related to internal control deficiencies.
To evaluate FHFA’s internal control over financial reporting, GAO reviewed FHFA policies and procedures; interviewed FHFA management and staff; observed controls in operation; and conducted tests of controls to determine whether controls were designed, implemented, and operating effectively. GAO also determined the status of FHFA’s efforts to address recommendations related to internal control deficiencies that GAO identified in its prior report, and that remained open as of September 30, 2023.
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