The Federal Deposit Insurance Corporation insures over $9 trillion in deposits, and protects your money if your FDIC-insured bank fails.
We audit and issue opinions annually on financial statements of FDIC's insurance funds and on related internal controls (e.g., processes to reasonably assure that transactions are properly authorized and recorded).
We found that the statements were reliable and that FDIC's controls over financial reporting were effective in 2022. However, as we noted previously, FDIC needs to improve the process it uses to ensure that its payments to contractors are correct.
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, 2022, and 2021, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) although internal controls could be improved, 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, 2022; and (3) with respect to the DIF and to the FRF, no reportable instances of noncompliance for 2022 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 for the 31st consecutive year on the DIF's and the FRF's financial statements. In regard to the significant deficiency in internal control over contract documentation and payment review processes, FDIC stated that while it took significant measures during 2022 to resolve the significant deficiency, controls were inconsistently applied. Further, FDIC stated that it would be performing additional risk-based control activities and enhancing monitoring capabilities related to this area. FDIC reiterated its commitment to sound financial management and assurance that this remains a top priority.
Why GAO Did This Study
Section 17 of the Federal Deposit Insurance Act, as amended, requires GAO to audit the financial statements of the DIF and of the FRF annually. In addition, the Government Corporation Control Act requires that FDIC annually prepare and submit audited financial statements to Congress and authorizes GAO to audit the statements. This report responds to these requirements.
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