Federal Deposit Insurance Corporation
Office of Inspector General
Federal Deposit Insurance Corporation - Office of Inspector General

The FDIC’s Compliance with the Digital Accountability and Transparency Act of 2014

Wednesday, November 8, 2017

The FDIC’s Compliance with the Digital Accountability and Transparency Act of 2014

On November 8, 2017, we issued the results of our audit of the FDIC’s Compliance with 
the Digital Accountability and Transparency Act of 2014 (DATA Act). The purpose of 
the DATA Act is to expand the Federal Funding Accountability and Transparency Act 
of 2006 by increasing the accountability and transparency in federal spending, and 
for other purposes.  We assessed (1) the completeness, timeliness, quality, and 
accuracy of the financial and award data that the FDIC submitted for the second 
quarter of Fiscal Year 2017 and published on USASpending.gov and (2) the FDIC’s 
implementation and use of the government-wide financial data standards established 
by the Office of Management and Budget and Department of the Treasury.  

We concluded that the FDIC could reasonably rely on its source financial system for 
the DATA Act submission for the second quarter of fiscal year 2017.  However, the 
FDIC incorrectly reported certain data elements obtained from its source financial 
system when submitting its files.  Therefore, although the FDIC’s data submission 
was timely and complete, the data lacked quality and was inaccurate in certain 
respects.  Specifically, we identified three reporting errors:

• The FDIC should have reported a certain value as $1.067 billion and, 
  instead, reported it as zero.
• The FDIC incorrectly overstated another data element by $10.9 million.
• The FDIC misclassified another data element, which led to an understatement in 
  one object class and an overstatement in another.

We found that the FDIC did not correctly implement all data definitions as evidenced 
by the errors in the DATA Act submissions.  We also identified control weaknesses in 
FDIC processes that contributed to the reporting inaccuracies.  For example, the FDIC 
should strengthen controls around the submission process, including enhancing written 
procedures, defining roles and responsibilities of individuals tasked with DATA Act 
submissions, and establishing adequate segregation of duties and back-up resources.  
Without such control improvements, the FDIC is at risk for further inaccurate and 
lesser quality DATA Act submissions.  

We made six recommendations to the Director of the Division of Finance to enhance
DATA Act procedures, establish a mapping between DATA Act reporting requirements 
and financial system data elements, strengthen segregation of duties, train DATA
Act team members and back-up resources, document quality review of DATA Act  submissions, and correct and recertify the DATA Act submission
for the second quarter of 2017. Management concurred with our recommendations.

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