Management Letter:

Pension Benefit Guaranty Corporation's Accounting Procedures

AIMD-94-168ML: Published: Aug 29, 1994. Publicly Released: Aug 29, 1994.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO provided information on the nonmaterial accounting and internal control weaknesses it detected during its audits of the Pension Benefit Guaranty Corporation's (PBGC) fiscal year 1993 financial statements. GAO noted that: (1) PBGC failed to include all underfunded plans in its database and accounting system and had inadequate classification procedures and documentation for its contingent liability assessment process; (2) PBGC failed to use the most current and reliable data and did not adequately document recovery estimations and contribution agreements with plan sponsors; (3) weaknesses in the Multiemployer Program included inadequate supporting documentation, inconsistent processes, inadequate document safeguards and reviews, and PBGC failure to use available information on terminated plans; (4) additional weaknesses included poor controls over premium refunds and inadequate accounting policies for measuring losses, inconsistent methods for calculating interfund allocations, PBGC failure to offset accounts to net zero, unaudited custodian bank reporting, inadequate computer security and access restrictions to the wire transfer and tape management systems, and PBGC failure to establish separate test and production environments; and (5) PBGC has corrected some weaknesses and is taking steps to correct others.

Oct 1, 2018

Jun 4, 2018

May 22, 2018

May 21, 2018

May 17, 2018

Mar 7, 2018

Mar 5, 2018

Feb 21, 2018

Jan 8, 2018

Looking for more? Browse all our products here