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GAO-11-434R 1 (2011-04-18)

handle is hein.gao/gaobaanxo0001 and id is 1 raw text is: J A countability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 April 18, 2011 Mr. Timothy G. Massad Acting Assistant Secretary for Financial Stability Office of Financial Stability Department of the Treasury Subject: Management Report: Improvements Are Needed in Internal Control Over Financial Reporting for the Troubled Asset Relief Program Dear Mr. Massad: The Emergency Economic Stabilization Act of 2008 (EESA)' requires that we annually audit the financial statements of the Troubled Asset Relief Program (TARP), which is implemented by the Office of Financial Stability (OFS).3 On November 15, 2010, we issued our audit report4 including (1) an unqualified opinion on OFS's financial statements for TARP as of and for the fiscal years ended September 30, 2010, and 2009, and (2) an opinion that OFS maintained effective internal control over financial reporting as of September 30, 2010. We also reported that our tests of OFS's compliance with selected provisions of laws and regulations for the fiscal year ended September 30, 2010, disclosed no instances of noncompliance. Our November 2010 audit report concluded that although certain internal controls could be improved, OFS maintained, in all material respects, effective internal control over financial reporting as of September 30, 2010, that provided reasonable assurance that misstatements, losses, or noncompliance material in relation to the financial statements would be prevented or detected and corrected on a timely basis. Our audit report also 1Pub. L. No. 110-343, Div. A, 122 Stat. 3765 (Oct. 3, 2008), codified in part, as amended, at 12 U.S.C. §§ 5201-5261. 2Section 116(b) of EESA, 12 U.S.C. § 5226(b), requires that the Department of the Treasury (Treasury) annually prepare and submit to Congress and the public audited fiscal year financial statements for TARP that are prepared in accordance with generally accepted accounting principles. Section 116(b) further requires that GAO audit TARP's financial statements annually in accordance with generally accepted auditing standards. 3Section 101 of EESA, 12 U.S.C. § 5211, established OFS within Treasury to implement TARP. 4GAO, Financial Audit: Office of Financial Stability (Troubled Asset Relief Program) Fiscal Years 2010 and 2009 Financial Statements, GAO-11-174 (Washington, D.C.: Nov. 15, 2010). GAO-11-434R TARP Management Report