Financial Audit: Bank Insurance Fund's 1991 and 1990 Financial Statements
AFMD-92-73
Published: Jun 30, 1992. Publicly Released: Jun 30, 1992.
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Highlights
GAO examined the Federal Deposit Insurance Corporation's (FDIC) Bank Insurance Fund's financial statements for the years ended December 31, 1991 and 1990.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Deposit Insurance Corporation | In addition to the actions recommended by the Inspector General to address the weaknesses in the FDIC asset management system, the Chairman, FDIC, should direct the heads of the Division of Accounting and Corporate Services and Division of Liquidation to conduct, on a quarterly basis, an analysis of collection experience as a compensating control for evaluating the reasonableness of aggregate loss reserves on an ongoing basis. |
FDIC agreed to conduct a quarterly analysis of its collections experience in order to evaluate the reasonableness of its loss reserves established for the Bank Insurance Fund and the FSLIC Resolution Fund.
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| Federal Deposit Insurance Corporation | In addition to the actions recommended by the Inspector General to address the weaknesses in the FDIC asset management system, the Chairman, FDIC, should direct the heads of the Division of Accounting and Corporate Services and Division of Liquidation to implement procedures to ensure that the estimated recovery values of all assets acquired from failed financial institutions are promptly and continually updated to reflect current events, such as actual appraisal results, and asset sales. |
While FDIC has established procedures to verify the accuracy of certain large quarterly adjustments to the allowance for losses based on each receiving estimates generated from its asset management system. These procedures would fail to identify significant adjustments that may be needed to asset carrying values.
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Topics
Accounting proceduresBank failuresCorporate auditsCost analysisFederal agency accounting systemsFinancial recordsFunds managementInsured commercial banksInternal controlsFinancial statements