CFPB Releases Independent Audit of its Operations and Budget

Federal Issues Consumer Finance CFPB Dodd-Frank

In accordance with its obligations under the Dodd-Frank Act, the CFPB released an Independent Audit of Selected Operations and Budget for the Bureau’s fiscal year 2016. The audit report—which is dated December 16, 2016—was prepared by KPMG LLP for the purpose of evaluating the CFPB’s: (i) budget process relative to Bureau policies and procedures regarding budget formulation, execution, and monitoring; (ii) inventory and asset management practices, policies, and procedures; (iii) frequent traveler stipend program; and (iv) corrective actions taken to resolve the findings included in the Bureau’s 2015 Independent Audit (also completed by KPMG). KPMG concluded generally that adherence to asset management policies and procedures needs to be improved and that certain additional controls should be adopted. The report offers several recommendations addressing the deficiencies, which the Bureau’s Acting Chief Financial Officer agreed with and is “already preparing to implement.” The report also noted that the CFPB had “partially” but not completely remediated the deficiencies KPMG had identified in its 2015 audit.