GAO examined the Federal Financing Bank's (FFB) financial statements for the year ended September 30, 1988, its system of internal accounting controls, the related statements of income and changes in retained earnings, and the changes in its financial position for the year then ended.
Recommendations for Executive Action
|Department of the Treasury||1. The Secretary of the Treasury should direct the President, FFB, to record general ledger cash transactions as incurred and review and record interest accruals as required by the FFB accounting policy and procedures manual.|
|Department of the Treasury||2. The Secretary of the Treasury should direct the President, FFB, to develop and maintain detailed subsidiary records of the purchased SBA loans, including information on the contractual interest rates, to facilitate the correct computation of accrued interest on those loans.|
|Department of the Treasury||3. The Secretary of the Treasury should direct the President, FFB, to develop and maintain subsidiary records for FFB debt which correlate the outstanding amounts owed to Treasury and CSRDF to the related loans receivable to ensure that FFB pays the proper amount of interest on its Treasury debt.|