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GAO-12-415R 1 (2012-02-13)

handle is hein.gao/gaobacfsr0001 and id is 1 raw text is: & Accountablllty * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 February 13, 2012 Mr. Timothy G. Massad 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)1 requires that we annually audit the financial statements2 of the Troubled Asset Relief Program (TARP), which are prepared by the Department of the Treasury's (Treasury) Office of Financial Stability (OFS). 3On November 10, 2011, 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, 2011 and 2010, and (2) an opinion that OFS maintained effective internal control over financial reporting as of September 30, 2011. We also reported that our tests of OFS's compliance with selected provisions of laws and regulations for the fiscal year ended September 30, 2011, disclosed no instances of noncompliance. Our November 2011 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, 2011, that provided reasonable assurance that misstatements, losses, or noncompliance material in relation to the financial statements 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 2011 and 2010 Financial Statements, GAO-12-169 (Washington, D.C.: Nov. 10, 2011). GAO-12-415R TARP Management Report