Financial Audit: Office of Financial Stability's (Troubled Asset Relief Program) FY 2023 and FY 2022 Financial Statements
Fast Facts
Treasury's Troubled Asset Relief Program was originally authorized to spend $700 billion to help prevent the U.S. financial system's collapse in 2008. As of September 30, 2023, all TARP programs have closed and no troubled assets remain. The lifetime cost of TARP is $31 billion.
We audit and issue an opinion annually on TARP'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 financial statements reliable and controls over financial reporting effective. This will be the final set of audited financial statements for TARP.
Highlights
What GAO Found
GAO found (1) the Office of Financial Stability's (OFS) financial statements for the Troubled Asset Relief Program (TARP) 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) OFS maintained, in all material respects, effective internal control over financial reporting for TARP 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. As of September 30, 2023, all TARP programs have closed, and there are no remaining troubled assets held by OFS. In commenting on a draft of this report, OFS stated that it is proud to receive an unmodified opinion on its financial statements and its internal control over financial reporting. OFS also stated that it has always been committed to maintaining high standards and transparency in carrying out its responsibilities for TARP.
Why GAO Did This Study
The Emergency Economic Stabilization Act of 2008 (EESA) that authorized TARP on October 3, 2008, includes a provision for TARP, which is implemented by OFS, to annually prepare and submit to Congress and the public audited fiscal year financial statements that are prepared in accordance with U.S. generally accepted accounting principles. EESA further states that GAO shall audit TARP's financial statements annually. Since OFS sold all of its troubled assets and all programs are closed, this will be the final set of audited financial statements for TARP.
For more information, contact Cheryl E. Clark at (202) 512-3406 or clarkce@gao.gov.