Combined Financial Statements Saif Insured Associations

Author : U S Government Accountability Office (G
Publisher : BiblioGov
ISBN 13 : 9781289267285
Total Pages : 38 pages
Book Rating : 4.2/5 (672 download)

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Download or read book Financial Audit written by U S Government Accountability Office (G and published by BiblioGov. This book was released on 2013-07 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: GAO reviewed the Savings Association Insurance Fund's (SAIF): (1) financial statements for the years ended December 31, 1991, and 1990; and (2) internal control structure and compliance with applicable laws and regulations. GAO found that: (1) the financial statements presented fairly, in all material respects, the SAIF financial position for the years then ended, in conformity with generally accepted accounting principles; (2) as of December 31, 1991, SAIF reported an $87-million fund balance; (3) SAIF financial statements reflected a $21-million loss attributable to the failure of Oakar banks, or banks that acquired thrifts' deposits; (4) the financial condition of the thrift industry improved in 1991, but economic uncertainties will continue to affect SAIF exposure to potential insurance losses; (5) it is uncertain whether insurance assessments and Treasury payments, the two primary revenue sources for SAIF, will be sufficient to enable SAIF to carry out its responsibilities and achieve its net worth goals; (6) the Federal Deposit Insurance Corporation (FDIC), which administers SAIF, proposed an assessment rate increase to help SAIF reach its designated reserve ratio of 1.25 percent of its insured deposits; (7) FDIC lacks an adequate process for estimating potential insurance losses for SAIF, particularly those posed by failures of smaller Oakar banks; and (8) FDIC does not consistently follow its policies and procedures for time and attendance reporting.