FADA's Preliminary and Final 1987 Financial Statements
AFMD-88-77FS: Published: Aug 5, 1988. Publicly Released: Sep 12, 1988.
- Full Report:
In response to a congressional request, GAO examined: (1) the major differences between the Federal Asset Disposition Association's (FADA) unaudited, preliminary financial statements for the year ended December 31, 1987, and an independent auditor's account of its financial statements for that period; (2) primary FADA sources of income and expenses; and (3) the volume of its borrowings through a Federal Home Loan Bank's advances.
GAO found that the: (1) differences between the statements resulted in a reduction of about $4.2 million in FADA losses for 1987 and its deficit at year-end; (2) primary FADA source of income was the fee it charged to manage and dispose of receivership assets; (3) Federal Savings and Loan Insurance Corporation and FADA revised their asset management agreement to increase potential FADA income and to encourage its marketing asset efforts; (4) 1987 FADA operating expenses totalled $29.4 million; (5) advances from the Federal Home Loan Bank totalled about $7 million, which FADA used solely to fund the reimbursable costs it incurred for the receivers; and (6) fee income at year-end was uncertain and subject to adjustments.