This story appeared in Bank Digest.
Under the Emergency Economic Stabilization Act, the Secretary of the Treasury was authorized to implement the Troubled Asset Relief Program (TARP) and established the Office of Financial Stability (OFS). EESA requires the annual preparation of financial statements for TARP, and further requires GAO to audit these statements. GAO audited OFS's fiscal year 2009 financial statements for TARP to determine whether, in all material respects, the financial statements were fairly stated, and OFS management maintained effective internal control over financial reporting. GAO also tested OFS's compliance with selected provisions of laws and regulations. In the GAO's opinion, the OFS's fiscal year 2009 financial statements for TARP are fairly presented in all material respects. The GAO also concluded that, although internal controls could be improved, the OFS maintained, in all material respects, effective internal control over financial reporting as of Sept. 30, 2009. The GAO found no reportable instances of noncompliance with the provisions of laws and regulations it tested.


