Board of Governors of the Federal Reserve System Financial Statements as of and for the Years Ended December 31, 2014 and 2013, and Independent Auditors' Reports

March 12, 2015

Memorandum

This memorandum transmits the Independent Auditors' Report prepared by Deloitte & Touche LLP on the Board of Governors of the Federal Reserve System's (Board) financial statements and internal control over financial reporting. The Office of Inspector General contracted with Deloitte & Touche LLP to audit the financial statements of the Board as of and for the years ended December 31, 2014 and 2013, and to audit the Board's internal control over financial reporting as of December 31, 2014.

The contract requires the audits of the financial statements to be performed in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and with auditing standards of the Public Company Accounting Oversight Board (PCAOB). The contract also requires the audit of internal control over financial reporting to be performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with the auditing standards of the PCAOB. The Office of Inspector General reviews and monitors the work of Deloitte & Touche LLP to ensure compliance with Government Auditing Standards and the contract. Deloitte & Touche LLP is responsible for the accompanying Independent Auditors' Report dated March 12, 2015.

We do not express an opinion on the Board's financial statements or internal control over financial reporting. In addition, we do not draw conclusions on the Board's compliance with laws and regulations.