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Financial Audit: Federal Financing Bank's Fiscal Year 1988 Financial Statements

AFMD-89-118 Published: Sep 29, 1989. Publicly Released: Sep 29, 1989.
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Highlights

GAO examined the Federal Financing Bank's (FFB) financial statements for the year ended September 30, 1988, its system of internal accounting controls, the related statements of income and changes in retained earnings, and the changes in its financial position for the year then ended.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Treasury The Secretary of the Treasury should direct the President, FFB, to record general ledger cash transactions as incurred and review and record interest accruals as required by the FFB accounting policy and procedures manual.
Closed – Implemented
The FFB Accounting Manager is conducting a monthly review to ensure cash transactions are posted timely. Also, FFB is doing a review of interest accruals annually to verify accuracy.
Department of the Treasury The Secretary of the Treasury should direct the President, FFB, to develop and maintain detailed subsidiary records of the purchased SBA loans, including information on the contractual interest rates, to facilitate the correct computation of accrued interest on those loans.
Closed – Implemented
The FFB Accounting Manager stated all subsidiary records are in agreement with the general ledger and are being reconciled monthly on SBA loans.
Department of the Treasury The Secretary of the Treasury should direct the President, FFB, to develop and maintain subsidiary records for FFB debt which correlate the outstanding amounts owed to Treasury and CSRDF to the related loans receivable to ensure that FFB pays the proper amount of interest on its Treasury debt.
Closed – Implemented
The FFB Accounting Manager stated that a subsidiary record of debt owed to the Treasury is being reconciled monthly.

Full Report

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Topics

Auditing and Financial Management
Accounting proceduresAccounts receivableFederal agency accounting systemsFinancial managementFinancial recordsFinancial statement auditsGovernment guaranteed loansInternal controlsLending institutionsLoan repayments