FRB Internal Controls

AIMD-96-31R: Jan 18, 1996

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Shirley A. Jones
(202) 512-8156


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Pursuant to a congressional request, GAO reviewed the 11th District Federal Reserve Bank's (FRB) internal accounting controls. GAO noted that: (1) significant weaknesses exist in Dallas FRB internal controls; (2) Dallas FRB needs to ensure that transactions and accounts are properly recorded, reconciled, verified, and analyzed, the general ledger is accurate and up-to-date, financial statements are complete and informative, generally accepted accounting principles are followed, data and software changes and access to critical financial applications and systems are restricted, key staff duties are segregated, and policies and procedures are formalized and documented; (2) the District branches need to implement policies and procedures to strengthen the computer security monitoring program; and (3) Dallas FRB and its Houston branch need to improve check processing and currency system controls.