Financial Audit: Federal Deposit Insurance Corporation's 1994 and 1993 Financial Statements
AIMD-95-102
Published: Mar 31, 1995. Publicly Released: Mar 31, 1995.
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Highlights
GAO audited the financial statements of the Bank Insurance Fund (BIF), the Savings Association Insurance Fund (SAIF), and the Federal Savings and Loan Insurance Corporation Resolution Fund for the years ended December 31, 1993 and 1994.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Deposit Insurance Corporation | To address weaknesses identified in this year's audits in the area of safeguarding and reporting contracted asset servicers' activity, the Chairman, FDIC, should direct the heads of the Division of Finance and the Division of Depositor and Asset Services to implement the provisions of the October 1994 letter of understanding that require quarterly verification of servicer activity to source documents and reconciliation of total monthly servicer activity to servicers' accounting records. |
Closed – Implemented
During 1995, the Division of Finance and the Division of Depositor and Asset Services fully implemented the provisions of the October 1994 letter of understanding that requires quarterly verification of servicer activity to source documents and reconciliation of total monthly servicer activity to servicers' accounting records. GAO's 1995 audit found that, during 1995, FDIC verified the accuracy of reported asset activity to supporting documentation and to servicers' detailed accounting records.
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| Federal Deposit Insurance Corporation | To address weaknesses identified in this year's audits in the area of safeguarding and reporting contracted asset servicers' activity, the Chairman, FDIC, should direct the heads of the Division of Finance and the Division of Depositor and Asset Services to establish dual controls over the opening of collections and establish control totals for daily collections. |
Closed – Implemented
During 1995, FDIC's contracted asset servicers effectively improved daily collection procedures designed to ensure that collections are properly safeguarded and completely and accurately reported. One servicer effectively implemented procedures to verify collections received and to reconcile collections processed and deposited to daily collections. Another servicer implemented dual controls over daily collections and instituted aggressive procedures for collecting delinquent payments.
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| Federal Deposit Insurance Corporation | To address weaknesses identified in this year's audits in the area of safeguarding and reporting contracted asset servicers' activity, the Chairman, FDIC, should direct the heads of the Division of Finance and the Division of Depositor and Asset Services to reconcile collections deposited or processed to daily collection control totals. |
Closed – Implemented
During 1995, FDIC's contracted asset servicers effectively improved daily collection procedures designed to ensure that collections are properly safeguarded and completely and accurately reported. One servicer effectively implemented procedures to verify collections received and to reconcile collections processed and deposited to daily collections. Another servicer implemented dual controls over daily collections and instituted aggressive procedures for collecting delinquent payments.
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Topics
Accounting proceduresBank managementCorporate auditsFederal corporationsFinancial recordsFinancial statement auditsFunds managementInternal controlsReporting requirementsFinancial statements