Office of Financial Stability's (Troubled Asset Relief Program) FY 2020 and FY 2019 Financial Statements
GAO-21-173R: Published: Nov 10, 2020. Publicly Released: Nov 10, 2020.
The Treasury Department's Troubled Asset Relief Program was originally authorized to spend $700 billion to help prevent the U.S. financial system's collapse in 2008. As of September 30, 2020, TARP disbursed $442.9 billion. After repayments, dividends, and more, the estimated lifetime cost of TARP programs will be $32.1 billion.
We audit TARP's financial statements each year and issue an opinion on them, as well as on the effectiveness of its internal controls (e.g., ability to ensure that transactions are properly authorized and recorded). In 2020, we found the statements were reliable and that controls over financial reporting were effective.
What GAO Found
GAO found (1) the Office of Financial Stability's (OFS) financial statements for the Troubled Asset Relief Program (TARP) as of and for the fiscal years ended September 30, 2020, and 2019, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) OFS maintained, in all material respects, effective internal control over financial reporting for TARP as of September 30, 2020; and (3) no reportable noncompliance for fiscal year 2020 with provisions of applicable laws, regulations, contracts, and grant agreements GAO tested. In commenting on a draft of this report, OFS stated that it is proud to receive an unmodified opinion on its financial statements and its internal control over financial reporting. OFS also stated that it is committed to maintaining the high standards and transparency reflected in these audit results.
Why GAO Did This Study
The Emergency Economic Stabilization Act of 2008 (EESA) that authorized TARP on October 3, 2008, includes a provision for TARP, which is implemented by OFS, to annually prepare and submit to Congress and the public audited fiscal year financial statements that are prepared in accordance with U.S. generally accepted accounting principles. EESA further states that GAO shall audit TARP's financial statements annually.
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