If your bank failed, what would happen to the money in your checking or savings account?
The Federal Deposit Insurance Corporation insures more than $7 trillion in deposits against bank failures—up to $250,000 per individual depositor.
We audit the financial statements of FDIC's insurance funds each year and issue an opinion on them, as well as on the effectiveness of the agency's internal controls (e.g., ability to ensure that transactions are properly authorized and recorded). In 2018, we found the statements were reliable and that FDIC's controls over financial reporting were effective.
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What GAO Found
GAO found (1) the financial statements of the Deposit Insurance Fund (DIF) and of the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution Fund (FRF) as of and for the years ended December 31, 2018, and 2017, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) the Federal Deposit Insurance Corporation (FDIC) maintained, in all material respects, effective internal control over financial reporting relevant to the DIF and to the FRF as of December 31, 2018; and (3) with respect to the DIF and to the FRF, no reportable instances of noncompliance for 2018 with provisions of applicable laws, regulations, contracts, and grant agreements GAO tested.
In commenting on a draft of this report, FDIC stated that it was pleased to receive unmodified opinions on the DIF's and the FRF's financial statements, and noted that GAO reported that FDIC had effective internal control over financial reporting and that there was no reportable noncompliance with tested provisions of applicable laws, regulations, contracts, and grant agreements. FDIC also stated that it recognizes the important role a strong internal control program plays in an agency achieving its mission and that it remains committed to ensuring sound financial management remains a top priority.
Why GAO Did This Study
Section 17 of the Federal Deposit Insurance Act, as amended, requires GAO to annually audit the financial statements of the DIF and of the FRF. In addition, the Government Corporation Control Act requires that FDIC annually prepare and submit audited financial statements to Congress, and provides GAO authority to perform the audit. This report responds to these requirements.
For more information, contact James R. Dalkin at (202) 512-3133 or firstname.lastname@example.org.