Disclaimer of Opinion on the Financial Statements of the Pension Benefit Guaranty Corporation for FY 1980
AFMD-82-42
Published: Jun 23, 1982. Publicly Released: Jun 23, 1982.
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Highlights
GAO examined the combined statement of the financial condition of the Pension Benefit Guaranty Corporation (PBGC) as of September 30, 1980, the related combined statements of operations and changes in the deficiency in net assets, and the changes in financial condition for the year then ended.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Pension Benefit Guaranty Corporation | The Executive Director, PBGC, should: (1) develop a system for financial statement reporting that values benefits on a current, individual-participant basis; (2) substantiate the reasonableness of actuarial assumptions, estimation techniques, and models; (3) determine reasons for changes in the pension plan inventory and establish allowances in the financial statements for expected variances; (4) establish accounting controls and procedures to reconcile financial data maintained by separate computer systems; and (5) develop policies and procedures for substantiating information provided by external organizations. |
Closed – Implemented
Although PBGC has taken several actions, it needs legislation to provide authority for it to require information from companies to assess the financial condition of private pension plans and verify the liability for pension plans turned over to PBGC. The information is needed to audit PBGC financial statements. These issues will be considered in future audits.
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Accounting proceduresAccounting systemsAuditing proceduresCorporate auditsFinancial managementFinancial statement auditsInternal controlsMaterialityPensionsFinancial statements