The audited annual financial statements of the Federal Reserve Bank of Philadelphia as of and for the years ended December 31, 2020, and December 31, 2019, are incorporated here by reference. They are available at the Board of Governors of the Federal Reserve System at https://www.federalreserve.gov/aboutthefed/files/philadelphiafinstmt2020.pdf. That public disclosure also provides: Notes to Financial Statements, Management’s Report on Internal Control over Financial Reporting, and the Independent Auditors’ Report.
The Board of Governors’ Statement of Auditor Independence is provided below.
Statement of Auditor Independence
The Federal Reserve Board engaged KPMG to audit the 2020 combined and individual financial statements of the Reserve Banks and the financial statements of the five limited liability companies (LLCs) that are associated with the Board of Governors’ actions to address the coronavirus pandemic, of which four LLCs are consolidated in the statements of the Federal Reserve Bank of New York and one LLC is consolidated in the statements of the Federal Reserve Bank of Boston.1
In 2020, KPMG also conducted audits of internal controls over financial reporting for each of the Reserve Banks. Fees for KPMG services totaled $10.3 million, of which approximately $3.0 million were for the audits of the LLCs.2 To ensure auditor independence, the Board of Governors requires that KPMG be independent in all matters relating to the audits. Specifically, KPMG may not perform services for the Reserve Banks or affiliated entities that would place it in a position of auditing its own work, making management decisions on behalf of the Reserve Banks, or in any other way impairing its audit independence. In 2020, the Bank did not engage KPMG for any non-audit services.
- In addition, KPMG audited the Office of Employee Benefits of the Federal Reserve System (OEB), the Retirement Plan for Employees of the Federal Reserve System (System Plan), and the Thrift Plan for Employees of the Federal Reserve System (Thrift Plan). The System Plan and the Thrift Plan provide retirement benefits to employees of the Board, the Federal Reserve Banks, the OEB, and the Consumer Financial Protection Bureau.
- Each LLC will reimburse the Board of Governors for the fees related to the audit of its financial statements from the entity’s available assets.