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Financial Audit: Federal Financing Bank's 1993 and 1992 Financial Statements

AIMD-95-4 Published: Dec 06, 1994. Publicly Released: Dec 06, 1994.
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Highlights

Pursuant to a legislative requirement, GAO reviewed the Federal Financing Bank's (FFB) financial statements for fiscal years ended September 30, 1993 and 1992.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Treasury Because of the long-standing internal control weaknesses reported by the independent certified public accountants (IPA), the Secretary of the Treasury should implement the IPA recommendation to appoint an individual with the responsibility and authority to oversee both the credit accounting and administrative functions of FFB.
Closed – Implemented
A reorganization is being initiated under which the functions of the accounting and policy staff will be centralized beginning in early FY 1997.
Department of the Treasury Since FFB will not be able to repay its liability to Treasury associated with loan prepayments under its current operating scenario, Treasury should consider actions to eliminate this liability as well as the related account receivable on its books, including, if necessary, requesting appropriate legislation.
Closed – Not Implemented
This issue is still a problem which would require legislative action to correct. The liability in question still exists but is not increasing. However, FFB does not view this as a control problem and did not interpret the report as having reported it as one. No action has been taken on this issue and, at present, no action is planned.

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Topics

Budget deficitFederal agency accounting systemsFinancial managementFinancial recordsFinancial statement auditsGovernment guaranteed loansInternal controlsLoan repaymentsOff-budget federal entitiesFinancial statements