Financial Audit: Federal Housing Finance Agency's FY 2023 and FY 2022 Financial Statements
Fast Facts
The Federal Housing Finance Agency's goal is to keep the housing finance system healthy by supervising and regulating Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System.
The agency spent $386 million in FY 2023 to do its work.
We audit and issue opinions annually on the agency's financial statements and on related internal controls (e.g., processes to reasonably assure that transactions are properly authorized and recorded).
In FY 2023, we found the statements were reliable and that controls over financial reporting were effective—although some financial reporting controls could be improved.
Highlights
What GAO Found
GAO found (1) the Federal Housing Finance Agency's (FHFA) financial statements as of and for the fiscal years ended September 30, 2023, and 2022 are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) although internal controls could be improved, FHFA maintained, in all material respects, effective internal control over financial reporting as of September 30, 2023; and (3) no reportable noncompliance for fiscal year 2023 with provisions of applicable laws, regulations, contracts, and grant agreements GAO tested. In its written comments on a draft of this report, FHFA stated that it was pleased to accept GAO's unmodified audit opinions. In addition, it will continue to enhance its internal control and ensure the reliability of its financial reporting. This includes coordinating with its stakeholders involved in the financial statement consolidation process to implement additional controls to address the significant deficiency.
Why GAO Did This Study
The Housing and Economic Recovery Act of 2008 established FHFA as an independent agency empowered with supervisory and regulatory oversight of the housing-related government-sponsored enterprises: the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), the 11 Federal Home Loan Banks, and the Office of Finance. This act requires FHFA to prepare financial statements annually and requires GAO to audit the agency's financial statements. In accordance with the act, GAO audited FHFA's financial statements.
For more information, contact Anne Sit-Williams at (202) 512-7795 or sitwilliamsa@gao.gov.