The Commodity Futures Trading Commission received only a “qualified opinion” for its financial statement as of September 30, 2015, and 2014 (the end of its fiscal years) by KPMG LLP, in connection with an audit conducted by the Office of Inspector General. Moreover, KPMG found a material weakness in the CFTC’s internal controls over its financial presentation. Specifically, KPMG contested the manner in which the CFTC accounted for long-term lease obligations, claiming it understated its going-forward obligations by US $212 million in FY 2014 and US $194 million in FY 2015. The CFTC did not agree with KPMG’s findings, saying its “historical practice has been to obligate only the annual portion of lease payments due each year.” The CFTC said it based its presentation on advice from the Office of Management and Budget and anticipates a formal view from the Government Accountability Office later this year. KPMG also found two other reporting errors in the CFTC’s FY 2014 financial presentation that the CFTC subsequently corrected. KPMG claimed the CFTC’s internal controls were deficient because the agency did not have adequate measures to ensure lease obligations were reflected in accordance with Generally Accepted Accounting Principles and it lacked “sufficiently detailed review by management of the financial statements” to ensure that errors and omissions were caught. Among other things, KPMG recommended the CFTC “[d]evelop written accounting policies and procedures that document the basis for all accounting positions that are significant to the financial statements.” KPMG’s current view of the CFTC’s financial position as of September 30, 2014, reversed its view at the time when it said the Commission’s presentation of its financial position was “fairly stated.” Imagine the consequences of KPMG’s conclusions if the CFTC was a registrant under its own jurisdiction. Ouch!