Views on H.R. 2322; A Bill Authorizing GAO To Audit the Federal Reserve Board

Comments were requested on H.R. 2322, a bill that would authorize and direct GAO to audit the Federal Reserve Board, the Federal Advisory Council, the Federal Open Market Committee, and Federal Reserve banks and their branches. The bill would broaden the authority of GAO to audit the Federal Reserve System. Under the Accounting and Auditing Act of 1950, the authority of GAO to audit the Federal Reserve is limited. The bill would be necessary to give GAO access to the nonpublic data and transaction records that are maintained by the Federal Reserve. However, as presently drafted, the bill contains several ambiguities and omissions that should be addressed in any legislation that would expand the authority of GAO to audit the Federal Reserve. If legislation to expand the GAO audit authority is considered, GAO suggests that the Accounting and Auditing Act be amended to avoid interpretative ambiguities and inconsistencies in the GAO audit and access records authority.