Summary: What GAO Found
As of February 2013 our performance audits of the TARP programs have resulted in 66 recommendations to Treasury. Of the 66 recommendations, Treasury has implemented 51, or approximately 77 percent. Treasury has partially implemented 7 of the performance audit recommendations--that is, it has taken some steps toward implementation but needs to take more actions. Four performance audit recommendations remain open--that is, Treasury has not taken steps to implement them. Among these open recommendations are 2 recommendations directed at CPP and 2 recommendations directed at the MHA housing programs. Finally, with regard to 2 of the remaining 4 recommendations, Treasury officials told us that they were not planning to take actions to implement them. For the other 2 recommendations, the TARP program evolved and the recommendations are no longer applicable.
TARP is required to annually prepare and issue audited financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). GAO is required to annually audit these statements to determine if: (1) OFS's financial statements for TARP are fairly presented in all material respects as of and for the year ended September 30; (2) OFS's internal control over financial reporting is effective as of September 30; and (3) there are any reportable noncompliance with selected provisions of laws and regulations that we test.
Why GAO Did This StudyThe Emergency Economic Stabilization Act of 2008 (EESA) authorized the creation of the Troubled Asset Relief Program (TARP) to address the most severe crisis that the financial system had faced in decades. EESA provided GAO with broad oversight authorities for actions taken under TARP and required that we report at least every 60 days on TARP activities and performance. Our oversight and reporting has resulted in 99 performance and financial statement audit recommendations to the U.S. Department of the Treasury (Treasury), the primary agency responsible for TARP programs. While Treasury has addressed most of our recommendations, some recommendations remain outstanding.
This 60-day report describes the status of our TARP recommendations to Treasury as of February 2013. In particular, this report discusses Treasury's implementation of our recommendations, focusing particularly on two major TARP programs: the Capital Purchase Program (CPP), which supports certain U.S. financial institutions, and Making Home Affordable (MHA), which is a collection of housing programs designed to help homeowners avoid foreclosure. The report also addresses Treasury's responses to our recommendations for improving internal controls over financial reporting for TARP that resulted from our audits of TARP's financial statements.
For more Information, contact A. Nicole Clowers at (202) 512-8678 or clowersa@gao.gov.
