Examination of the Federal Savings and Loan Insurance Corporation's Financial Statements for the Years Ended December 31, 1984 and 1983
AFMD-85-60: Published: Jul 16, 1985. Publicly Released: Jul 16, 1985.
- Full Report:
GAO examined the statements of the financial position of the Federal Savings and Loan Insurance Corporation (FSLIC) as of December 31, 1984 and 1983, and the related statements of income and expense and reserves, and changes in financial position for the years then ended in accordance with generally accepted government auditing standards.
As of December 31, 1984, FSLIC held $1.8 billion in claims against the assets of failed lending institutions. However, the net value which can be realized from these claims is uncertain. Although FSLIC has established an allowance for loss for the assets acquired from the three institutions, recent bank failures, inadequate loan records, and pending and possible litigation affecting the three institutions prevent an accurate estimate of the net realizable value of the assets acquired. GAO found that the financial statements presented fairly the financial position of FSLIC as of December 31, 1984 and 1983, and the results of its operations and changes in financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. However, because of the imponderables involved in forecasting the sufficiency of the insurance fund to meet future claims against it, the opinion of GAO on the financial statements does not extend to the adequacy of the fund.