GAO has identified internal control issues that affected the Federal Deposit Insurance Corporation’s accounting for the funds it administers, and it made recommendations to improve internal management controls.
Following audits of FDIC’s fiscal 2007 financial statements, GAO said for example that the regulatory agency did not properly account for checks received in its Dallas mailroom.
It also said the FDIC lacked adequate procedures and controls to safeguard transported checks for deposit, increasing the risk of theft, loss, or misappropriation of these assets.
GAO called on the FDIC to ensure that mailroom contractor employees follow procedures for entering check information into an electronic spreadsheet and perform necessary reconciliations.
It also said the agency should review its mail center manual and revise it to reflect current procedures and controls over mailroom check processing; establish procedures to require remote electronic deposits, eliminating the need for a courier service, and until FDIC implements a remote electronic deposit process, require Cashiers Unit staff to verify the identity of the courier, obtain a receipt for the checks, and ensure that the courier is bonded.
FDIC agreed, and cited corrective actions completed by April 30, 2008, that address the issues GAO identified, according to GAO-08-863R.
