Regulatory Agencies: Administrative Expenses at FHLBB and FRB for 1985 and 1986
AFMD-88-33
Published: Jun 15, 1988. Publicly Released: Jun 22, 1988.
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Highlights
In response to a congressional request, GAO reviewed the Federal Home Loan Bank Board (FHLBB) and the Federal Reserve Board (FRB) to determine: (1) the policies and procedures governing their administrative expenses and their compliance with them; (2) applicable laws and regulations; and (3) their budget and related disclosure processes.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Home Loan Bank Board | To ensure the completeness of the FHLBB budget, full congressional oversight, and compliance with the administrative budget limitation, the Chairman, FHLBB, should budget and account for all administrative expenditures and report such expenditures to Congress. |
FHLBB policy is to eliminate any further use of shared expense funds. All other administrative expenses are budgeted, accounted for, and reported to Congress. Accordingly, the thrust of this recommendation has been met.
|
| Federal Home Loan Bank Board | To ensure the completeness of the FHLBB budget, full congressional oversight, and compliance with the administrative budget limitation, the Chairman, FHLBB, should provide that expenses shared among the district banks may not include expenses for activities related to functions or responsibilities of FHLBB to a significant degree unless the banks' payments are limited to the portion of the activity that relates solely to their functions or responsibilities. |
FHLBB policy is to eliminate any further use of shared expense funds. All other administrative expenses are budgeted, accounted for, and reported to Congress. Accordingly, the thrust of this recommendation has been met.
|
| Federal Home Loan Bank Board | To ensure the completeness of the FHLBB budget, full congressional oversight, and compliance with the administrative budget limitation, the Chairman, FHLBB, should provide that criteria be established for determining what types of expenses may be shared among FHLBB and the district banks. |
FHLBB policy is to eliminate any further use of shared expense funds. All other administrative expenses are budgeted, accounted for, and reported to Congress. Accordingly, the thrust of this recommendation has been met.
|
| Federal Home Loan Bank Board | To ensure the completeness of the FHLBB budget, full congressional oversight, and compliance with the administrative budget limitation, the Chairman, FHLBB, should provide that the guidance provided in the March 2, 1987, Comptroller General decision regarding FHLBB travel expenses paid from the shared expense fund be incorporated in developing these orders. |
FHLBB policy is to eliminate any further use of shared expense funds. All other administrative expenses are budgeted, accounted for, and reported to Congress. Accordingly, the thrust of this recommendation has been met.
|
| Federal Home Loan Bank Board | To ensure the completeness of the FHLBB budget, full congressional oversight, and compliance with the administrative budget limitation, the Chairman, FHLBB, should provide that any shared expense arrangements must be fully disclosed to Congress. |
FHLBB policy is to eliminate any further use of shared expense funds. All other administrative expenses are budgeted, accounted for, and reported to Congress. Accordingly, the thrust of this recommendation has been met.
|
| Federal Home Loan Bank Board | Because FHLBB has a history of establishing joint funding arrangements with its district banks and not disclosing them to Congress, the FHLBB Inspector General should make periodic compliance reviews of policies applicable to budgeting and disclosure of all administrative expenses. |
The Inspector General agreed to make periodic compliance reviews, as recommended.
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Topics
Administrative costsBudget administrationBudget authorityCongressional oversightFinancial disclosureFinancial managementIndependent agenciesLending institutionsNoncomplianceRegulatory agencies