The U.S. Government Accountability Office (GAO) released its audit of the Federal Deposit Insurance Corp. (FDIC).
“We found that the statements were reliable and that FDIC’s controls over financial reporting were effective, although FDIC could improve its controls over contract payment reviews,” the GAO stated in a release.
In a letter to the Senate Committee on Banking, Housing, Urban Affairs and the House of Representatives Committee on Financial services, the GAO went into more detail.
“The financial statements of the DIF [Deposit Insurance Fund] and of the FRF [Federal Savings and Loan Insurance Corporation Resolution Fund] as of and for the years ended Dec. 31, 2020, and 2019, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles,” the GAO stated.
“Although internal controls could be improved, FDIC maintained, in all material respects, effective internal control over financial reporting relevant to the DIF and to the FRF as of Dec. 31, 2020 and, with respect to the DIF and to the FRF, no reportable instances of noncompliance for 2020 with provisions of applicable laws, regulations, contracts, and grant agreements we tested.”
The FDIC stated it was pleased to receive unmodified opinion on the DIF’s and the FRF’s financial statements. The FDIC also stated it has begun taking steps to address the noted deficiencies in its internal controls over contract payment review processes.