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GAO-13-324R 1 (2013-03-08)

handle is hein.gao/gaobacgyo0001 and id is 1 raw text is: GAO Accountablty *Integrity * Reliability United States Government Accountability Office Washington, DC 20548 March 8, 2013 Congressional Committees Subject: Troubled Asset Relief Program: Status of GAO Recommendations to Treasury The 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.1 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.2 Enclosure I provides the status of the recommendations 1EESA, Pub. L. No. 110-343, Div. A,122 Stat. 3765 (2008), codified, as amended, at 12 U.S.C. §§ 5201 et seq. EESA was enacted on October 3, 2008. EESA originally authorized Treasury to purchase or guarantee up to $700 billion in troubled assets. The Helping Families Save Their Homes Act of 2009, Pub. L. No. 111-22, Div. A, 123 Stat. 1632 (2009), amended EESA to reduce the maximum allowable amount of outstanding troubled assets under EESA by almost $1.3 billion, from $700 billion to $698.741 billion. The Dodd-Frank Wall Street Reform and Consumer Protection Act , Pub. L. No. 111-203, 124 Stat. 1376 (2010), (1) further reduced Treasury's authority to purchase or insure troubled assets to a maximum of $475 billion and (2) prohibited Treasury, under EESA, from incurring any additional obligations for a program or initiative unless the program or initiative had already been initiated prior to June 25, 2010. 2See EESA, Pub. L. No. 110-343, Div. A, 122 Stat 3765 (Oct. 3, 2008), codified, as amended, at 12 U.S.C. §§ 5201 et seq. Section 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 the Troubled Asset Relief Program (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 accounting principles. We have performed four financial statement audits since TARP's inception. See GAO, Financial Audit: Office of Financial Stability (Troubled Asset Relief Program) Fiscal Years 2012 and 2011 Financial Statements, GAO-13-126R (Washington, D.C.: Nov. 9, 2012); Financial Audit: Office of Financial Stability (Troubled Asset Relief Program) Fiscal Years 2011 and 2010 Financial Statements, GAO-1 2-169 (Washington, D.C.: Nov. 10, 2011); Financial Audit: Office of Financial Stability (Troubled Asset Relief Program) Fiscal Years 2010 and 2009 Financial Statements, GAO-I 1-174 (Washington, D.C.: Nov. 15, 2010); and Financial Audit: Office of Financial Stability (Troubled Asset Relief Program) Fiscal Year 2009 Financial Statements, GAO-1 0-301 (Washington, D.C.: Dec. 9, 2009). GAO-13-324R Status of GAO Recommendations to Treasury

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