FDIC fund statements get clean audit report from GAO

The 2017 and 2018 financial statements of two funds administered by the Federal Deposit Insurance Corp. (FDIC) – the Deposit Insurance Fund (DIF), and the Federal Savings and Loan Insurance Corp. (FSLIC) Resolution Fund (FRF) – received a clean audit opinion in a report Thursday by the Government Accountability Office (GAO).

The congressional watchdog, in its report, said:

(1) the financial statements of the DIF and the FRF as of and for the years ended Dec. 31, 2018, and 2017, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles;

(2) the FDIC maintained, in all material respects, effective internal control over financial reporting relevant to the DIF and to the FRF as of Dec. 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.

The DIF is the federal fund that insures deposits in insured banks and savings associations. The FRF is a resolution fund responsible for the sale of the remaining assets and the satisfaction of the liabilities associated with the former Federal Savings and Loan Insurance Corporation (FSLIC) and the former Resolution Trust Corporation (RTC). “The FRF will continue operations until all of its assets are sold or are otherwise liquidated and all of its liabilities are satisfied, according to notes to the financial statements,” according to notes to the financial statements.

Financial Audit: Federal Deposit Insurance Corporation Funds’ 2018 and 2017 Financial Statements (GAO-19-295R)