Financial Audit: Office of Financial Stability's (Troubled Asset Relief Program) FY 2021 and FY 2020 Financial Statements
Treasury'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, 2021, TARP had spent $443.4 billion. But after repayments, dividends, and more, the estimated lifetime cost of TARP programs will be $32.0 billion.
We audit and issue opinions annually on TARP's financial statements and on related internal controls (e.g., processes to reasonably assure that transactions are properly authorized and recorded).
In FY 2021, 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, 2021, and 2020, 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, 2021; and (3) no reportable noncompliance for fiscal year 2021 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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