Financial Audit: Federal Deposit Insurance Corporation Funds' 2023 and 2022 Financial Statements
Fast Facts
The Federal Deposit Insurance Corporation insures over $10 trillion in deposits and protects your money if your FDIC-insured bank fails.
We audit and issue opinions annually on financial statements of FDIC's insurance funds and on related internal controls (e.g., processes to reasonably assure that transactions are properly authorized and recorded).
We found the statements were reliable and controls over financial reporting were effective in 2023.
Highlights
What GAO Found
GAO found (1) the financial statements of the Deposit Insurance Fund (DIF) and of the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution Fund (FRF) as of and for the years ended December 31, 2023, and 2022, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) the Federal Deposit Insurance Corporation (FDIC) maintained, in all material respects, effective internal control over financial reporting relevant to the DIF and to the FRF as of December 31, 2023; and (3) with respect to the DIF and to the FRF, no reportable instances of noncompliance for 2023 with provisions of applicable laws, regulations, contracts, and grant agreements GAO tested. FDIC made progress during 2023 in addressing a significant deficiency that GAO reported in its prior year audits. Specifically, FDIC sufficiently addressed the deficiencies in contract documentation and payment review process controls such that GAO no longer considers the remaining control deficiencies in this area, individually or collectively, to represent a significant deficiency as of December 31, 2023.
In commenting on a draft of this report, FDIC stated that it was pleased to receive unmodified opinions for the 32nd consecutive year on the DIF's and the FRF's financial statements, and noted that GAO reported that FDIC had effective internal control over financial reporting and that there was no reportable noncompliance with tested provisions of applicable laws, regulations, contracts, and grant agreements. FDIC also stated that it was pleased to report that it effectively remediated a significant deficiency in internal control over contract documentation and contract payment review processes. FDIC stated that while its controls have improved, FDIC reiterated its commitment to sound financial management and will continue to look for opportunities to improve.
Why GAO Did This Study
Section 17 of the Federal Deposit Insurance Act, as amended, requires GAO to audit the financial statements of the DIF and of the FRF annually. In addition, the Government Corporation Control Act requires that FDIC annually prepare and submit audited financial statements to Congress and authorizes GAO to audit the statements. This report responds to these requirements.
For more information, contact M. Hannah Padilla at (202) 512-5683 or padillah@gao.gov.