About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

089335 1 (1971-02-25)

handle is hein.gao/gaobacvhg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE LM089335 WASHINGTON, D.C. 20548 CIVIL DIVISION FEB 25 1971 Dear Mr. Smith: The General Accounting Office has reviewed the practices followed by the Farmers Home Administration (FHA) in establishing and accounting for allowances for losses on uncollectible loans for FHA's various loan programs. In a report issued to the Congress on improvements needed in FHA's financial statements of the Emergency Credit Revolving Fund (ECRF), B-114873, December 30, 1970, we commented that -we were unable to evalu- ate the reasonableness of the allowances for losses on loans receivable, interest receivable, and judgments receivable as shown in the ECRF financial statements. We pointed out that FHA's accounting system did not provide adequate information on which to base an evaluation of the collectibility of outstanding loans. During our audit of FHA's financial statements of the ECRF, the FHA Assistant Administrator for Management requested the program directors at the headquarters office to initiate, on a semiannual basis, a review of the percentage rates used to establish allowances for losses for FHA's various loan programs. Although these semiannual reviews have resulted in some changes in percentage rates, the changes were made without the benefit of any input from FHA field office personnel concerning the col- lectibility of outstanding loan receivables. 1t our opinion, more real- istic.percentage rates for establishing allowances for losses could be developed if FHA county supervisors participated in periodic evaluations of the collectibility of outstanding loans and the data collected from such evaluations were used as a basis for establishing the overall per- centage rates for the various loan programs. To demonstrate the extent to which county supervisors could con- tribute to the process of developing more realistic percentage rates, we obtained certain information from the files in the Finance Office in St. Louis on 100 farm operating loans. The loans were selected on a random sample basis. We mailed questionnaires to the FHA county super- visors responsible for servicing the 100 loans requesting their estimates of the loans' collection potential. We also requested that the county 50TH ANNIVERSARY 1921-1971

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most