The CFPB has released a report for FY 2014 prepared by KPMG of its independent audit of selected CFPB operations and budget. An annual independent audit is required by the Dodd-Frank Act. The report reflects work performed by KPMG during the period October 1, 2014 to February 16, 2015.

The audit was conducted to evaluate various objectives specified by the CFPB. KPMG identified the following control deficiencies:

• The CFPB allows each office to manage its budget and, as a control, conducts mid-year reviews of budget estimates. Information regarding the impact of program changes that affected budget estimates were not communicated to the Office of Chief Financial Officer.
• The CFPB did not have a central deficiency log for tracking and/or monitoring deficiencies identified by audits and other means, which could result in duplicate or contradictory efforts to remediate issues and/or identify different responsible officials. In addition, remediation activities could interfere with each other and corrective actions might include different targeted milestones and completion dates.

The report includes a letter from the CFPB’s Chief Financial Officer indicating that the CFPB agrees with the deficiencies identified by KPMG and KPMG’s recommendations for addressing the deficiencies. The letter also discusses actions taken by the CFPB to resolve findings and implement recommendations in KPMG’s FY 2013 audit report.