Report on Internal Control Related to the Pension Benefit Guaranty Corporation's Fiscal Year 2017 and 2016 Financial Statements Audit

The Office of Inspector General issued an audit report on internal control over financial reporting for the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC). This report provides a more detailed discussion of the specifics underlying the unmodified opinion on internal control over financial reporting reported in the internal control deficiencies section of the combined Independent Auditor’s Report dated November 15, 2017 (AUD-2018-4/FA-17-119-1). We reported: • Internal control deficiencies in PBGC’s programs and operations that include three significant deficiencies: (1) Controls over the Present Value of Future Benefit (PVFB) Liability, (2) Present Value of Nonrecoverable Future Financial Assistance (PV NRFFA), and (3) Access Controls and Configuration Management. • PBGC strengthened its control environment by implementing management practices to mitigate control deficiencies reported in previous years. Further, management improved its current business processes to address specific financial reporting and information technology control deficiencies. However, management should continue to focus its efforts to resolve outstanding conditions.