To the Board of Directors
Pension Benefit Guaranty Corporation
We contracted with Clifton Gunderson LLP, an independent certified public accounting firm, to audit the financial statements of the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC) as of and for the years ended September 30, 2006 and 2005. The audits were performed in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, OMB’s Bulletin No. 06-03, Audit Requirements for Federal Financial Statements, and the GAO/PCIE Financial Audit Manual.
In its audits of PBGC’s Single-Employer and Multiemployer Program Funds, Clifton Gunderson found:
- The financial statements were presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America;
- PBGC’s assertion about internal control over financial reporting (including safeguarding assets) and compliance with laws and regulations, as of September 30, 2006, is fairly stated in all material respects. However, four reportable conditions were repeated from Fiscal Year 2005 regarding the lack of integrated financial management systems, improvements needed in PBGC’s information security program, weaknesses related to single-employer premiums, and PBGC’s need to strengthen its preparedness for unanticipated incidences and disruptions;
- No instances of noncompliance with tested laws and regulations.
Clifton Gunderson is responsible for the accompanying auditor’s report dated November 9, 2006, and the conclusions expressed in the report. We do not express opinions on PBGC’s financial statements or internal control, nor do we draw conclusions on compliance with laws and regulations.
Clifton Gunderson’s reports (2007-1/FA-0024-1) are also available on our website at http://oig.pbgc.gov.
Sincerely,
Robert L. Emmons
Inspector General
November 9, 2006
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