Board of Governors of the Federal Reserve System

Federal Reserve System Audits

The Board of Governors, the Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review.

The Board's financial statements and internal controls over financial reporting are audited annually by an independent outside auditor retained by the Board's Office of Inspector General (OIG). The outside auditor also tests the Board's compliance with certain provisions of laws, regulations, and contracts affecting those statements.

The Reserve Banks' financial statements are audited annually by an independent outside auditor retained by the Board of Governors. In addition, the Reserve Banks are subject to annual examination by the Board. As discussed in section 5, "Payment System and Reserve Bank Oversight," the Board's examination includes a wide range of ongoing oversight activities conducted on site and off site by staff of the Board's Division of Reserve Bank Operations and Payment Systems.

The audited annual financial statements of the Board of Governors, the Reserve Banks, and the Federal Reserve System as a whole are available on the Board's website at https://www.federalreserve.gov/aboutthefed/audited-annual-financial-statements.htm.

In addition, the OIG conducts audits, evaluations, investigations, and other reviews relating to the Board's programs and operations as well as to Board functions delegated to the Reserve Banks. Certain aspects of Federal Reserve operations are also subject to review by the Government Accountability Office.

Office of Inspector General Activities

The OIG for the Federal Reserve Board, which is also the OIG for the Consumer Financial Protection Bureau (CFPB), operates in accordance with the Inspector General Act of 1978, as amended. The OIG plans and conducts audits, evaluations, investigations, and other reviews relating to Board and CFPB programs and operations, including functions that the Board has delegated to the Federal Reserve Banks. It also retains an independent public accounting firm to annually audit the Board's and the Federal Financial Institutions Examination Council's financial statements. These activities promote economy and efficiency; enhance policies and procedures; and prevent and detect waste, fraud, and abuse. In addition, the OIG keeps Congress, the Board of Governors, and the CFPB director fully and currently informed about serious abuses and deficiencies.

During 2024, the OIG issued 22 reports, including 9 reports about Board programs and operations (table C.1). Because of the sensitive nature of some of the material, 2 of the 9 reports are nonpublic, as indicated. In addition, the OIG issued 6 information technology–related memorandum reports—3 on data analytics, which are posted to its website, and 3 on cybersecurity issues, which are not publicly available because of the sensitive nature of the information contained in them. The OIG also issued 2 semiannual reports to Congress and conducted follow-up reviews to evaluate the corrective actions taken to address its recommendations. Regarding the OIG's investigative work related to the Board and the CFPB, 27 investigations were opened and 60 investigations were closed during the year. OIG investigative work resulted in 39 arrests, 7 criminal complaints, 27 criminal informations,¹ 15 indictments, 46 convictions, and 6 prohibitions from the banking industry, as well as more than $352 million in criminal fines, restitution, and special assessments. Although the federal government announced an end to the COVID-19 public health emergency on May 11, 2023, the OIG will continue its investigative work concerning the pandemic-related lending programs—in particular, investigations of alleged fraud—for the foreseeable future. Finally, the OIG performed 21 reviews of legislation and regulations related to the operations of the Board, the CFPB, or the OIG.

Table C.1. Board reports issued by the OIG in 2024

For more information and to view the OIG's publications, visit the OIG's website at https://oig.federalreserve.gov. Specific details about the OIG's body of work also may be found in the OIG's Work Plan and semiannual reports to Congress.

Government Accountability Office Reviews

The Federal Banking Agency Audit Act (Pub. L. No. 95–320) authorizes the Government Accountability Office (GAO) to audit certain aspects of Federal Reserve System operations. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Coronavirus Aid, Relief, and Economic Security Act of 2020 direct the GAO to conduct additional audits with respect to these operations. In 2024, the GAO completed 12 projects that involved the Federal Reserve (table C.2). Fourteen projects were ongoing as of December 31, 2024 (table C.3).

Table C.2. GAO reports issued in 2024

Table C.3. Projects active at year-end 2024

For more information and to view GAO reports, visit the GAO's website at https://www.gao.gov.

Footnotes