Financial Audit:

FSLIC Resolution Fund's 1991 and 1990 Financial Statements

AFMD-92-75: Published: Jun 30, 1992. Publicly Released: Jun 30, 1992.

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GAO reviewed the Federal Savings and Loan Insurance Corporation's (FSLIC) Resolution Fund's financial statements for the years ended December 31, 1991 and 1990.

GAO found that: (1) the Fund's statement of financial position as of December 31, 1991, and its statements of cash flows for the years ended December 31, 1991 and 1990, presented fairly in all material respects the Fund's financial condition; (2) the statements were in conformity with generally accepted accounting standards; (3) the Fund's 1991 statement of income and accumulated deficit includes $1.7 billion in losses as a result of increases in the Fund's estimated assistance payments and a decrease in the Fund's estimated recoveries on receivership and corporate owned assets since the end of 1990; and (4) although the Fund's estimated future assistance payments and its estimated recoveries from asset sales are reasonable, uncertainties still exist regarding general economic conditions, such as the real estate markets and interest rates.