Financial Audit: Federal Housing Administration Fund's 1988 Financial Statements
AFMD-90-36
Published: Feb 09, 1990. Publicly Released: Feb 09, 1990.
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Highlights
GAO examined the Federal Housing Administration (FHA) Fund's consolidated statements of financial condition as of September 30, 1988, and the related statements of operations and changes in financial position for the period then ended.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should, through its appropriation, authorization, and oversight committees, hold annual hearings on the actions of FHA to ensure that FHA resolves the financial management problems identified, including evaluating its systems, correcting the material weaknesses identified, and ensuring that similar problems do not occur in the future. To assist in its oversight role, Congress should require the Secretary of Housing and Urban Development to provide audited financial statements, reports on internal accounting controls and compliance, and management's report required by the Federal Managers' Financial Integrity Act. |
Closed – Implemented
|
As a result of the HUD scandals, large FHA losses, and GAO testimony, Congress passed Public Law 101-235 on December 15, 1989, requiring that FHA establish an agency controller and have annual financial audits. Price Waterhouse is currently conducting a 1989 audit of FHA and a procurement for fiscal years 1990 through 1994 financial audits is in process. Annual reports will follow. |
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Topics
Auditing standardsFederal agency accounting systemsFederal corporationsFinancial managementFinancial statement auditsGovernment guaranteed loansInternal controlsMortgage protection insuranceNoncomplianceProgram abusesPublic enterprise revolving funds