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GAO: CFTC Violated Accounting Rules

By:
Chris Gaetano
Published Date:
Feb 5, 2016
GavelThe Government Accountability Office (GAO) said in a legal decision that the Commodity Futures Trading Commission (CFTC) violated accounting rules, confirming what Big Four firm KPMG said last month when it withdrew seven years' worth of audit opinions, according to Reuters. The GAO said the CFTC, when entering into multiple-year leases, was required to record an obligation equal to its total liability over the term of each lease, versus just that year's rent. In doing so, the agency was determined to have violated government accounting laws. While it noted that the agency did include clauses in its financial report about the availability of funds, the GAO determined that these were not enough. While the GAO did not outline consequences for the CFTC, it did recommend that it check to see whether, through these rule violations, it in turn violated the Antideficiency Act as well, which says government agencies can't authorize obligations in excess of what has been budgeted for them. In response to the report, CFTC Chair Steve Adamske said that the agency will move to address the problems the GAO raised.