Improvements Needed in SEC's Internal Controls and Accounting Procedures
April 13, 2012
In our audit of SEC's fiscal years 2011 and 2010 financial statements, we identified four significant deficiencies in internal control as of September 30, 2011. These significant internal control deficiencies represent continuing deficiencies concerning controls over (1) information systems, (2) financial reporting and accounting processes, (3) budgetary resources, and (4) registrant deposits and filing fees. These significant control deficiencies may adversely affect the accuracy and completeness of information used and reported by SEC's management. We are making a total of 10 new recommendations to address these continuing significant internal control deficiencies.
We also identified other internal control issues that although not considered material weaknesses or significant control deficiencies, nonetheless warrant SEC management's attention. These issues concern SEC's controls over:
- payroll monitoring,
- implementation of post-judgment interest accounting procedures,
- accounting for disgorgement and penalty transactions, and
- the government purchase card program.
We are making a total of 9 new recommendations related to these other internal control deficiencies.