Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
GAO identifies some FDIC insurance fund issues
WASHINGTON (4/23/12)--Some of the Federal Deposit Insurance Corporation's (FDIC) processes for deriving and reporting estimates of losses to its deposit insurance fund are deficient, but, overall, that agency's controls over financial reporting are effective, the Government Accountability Office (GAO) said in its audit of the FDIC's 2011 financial statements.

The GAO audit specifically found issues in the FDIC's loss estimate reporting of resolution transactions involving shared loss agreements.

Under shared loss agreements, the FDIC absorbs a portion of the loss on a specified pool of assets. This approach maximizes asset recoveries, minimizes FDIC losses, and reduces immediate cash needs, the agency said. This approach is used in selected purchase and assumption transactions.

The audit said these deficiencies resulted in undetected errors in draft 2011 insurance fund financial statements. These errors were flagged and ultimately corrected by the FDIC. "While these deficiencies, individually and collectively, do not constitute a material weakness in internal control over financial reporting, they nevertheless increase the risk of additional undetected errors or irregularities in the DIF's financial statements," the GAO said.

The GAO also reported other less significant matters involving FDIC's internal control over financial reporting. The GAO did not make any recommendations in the report, but did say it would produce a separate report on the issues identified in the audit, and provide recommendations on how the FDIC could strengthen its own internal controls.

For the GAO report, use the resource link.
Other Resources

RSS





print
News Now LiveWire
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
16 hours ago
House Financial Services Com. to hold March 3 hearing to receive the semi-annual report of @CFPB Director Richard Cordray.
16 hours ago
Rep. Jeff Miller (R-Fla.) re-introduced bill to ease veterans' access to loans for #smallbusiness purposes from a #creditunion (HR 1133)
18 hours ago
You can get your subscription to @cuna 's free, daily, online #creditunion #news service News Now here: http://t.co/YtUejEmAYP
18 hours ago
CCUA hosts @TheNASCUS college for #creditunion directors http://t.co/CftpSXDKWx
21 hours ago