Pension Benefit Guaranty Corporation
Office of Inspector General

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 September 30, 2005.  The audit was 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, and the GAO/PCIE Financial Audit Manual.

Clifton Gunderson’s financial statement audit of PBGC’s Single-Employer and Multiemployer Program Funds found:

• The financial statements are 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 and compliance with laws and regulations is fairly stated in all material respects;

• Four reportable conditions, including three repeated from Fiscal Year 2004:  financial management systems integration, information security, and single-employer premiums; and a new reportable condition: 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, 2005, 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 (2006-1/FA-0014-1) are available on our website at http://oig.pbgc.gov. 

The financial statements of the Single-Employer and Multiemployer Program Funds administered by PBGC as of September 30, 2004 were audited by other auditors whose report dated November 12, 2004 expressed an unqualified opinion on those financial statements.  Their reports (2005-2/23182-2) are also available on our website.

Sincerely,

Robert L. Emmons
Inspector General

November 9, 2005

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