Financial Audit: Federal Deposit Insurance Corporation Funds' 2001 and 2000 Financial Statements (21-MAY-02, GAO-02-633). GAO audited the financial statements for the three funds administered by the Federal Deposit Corporation for fiscal years 2000 and 1999 and the related statements of activities and cash flows. GAO found that (1) the financial statements were presented fairly in conformity with U.S. generally accepted accounting principles, (2) the Foundation had effective internal control over financial reporting and compliance with laws and regulations, and (3) there was no reportable noncompliance with laws and regulations tested. -------------------------Indexing Terms------------------------- REPORTNUM: GAO-02-633 ACCNO: A03369 TITLE: Financial Audit: Federal Deposit Insurance Corporation Funds' 2001 and 2000 Financial Statements DATE: 05/21/2002 SUBJECT: Internal controls Financial statement audits Reporting requirements Bank Insurance Fund FSLIC Resolution Fund Savings Association Insurance Fund ****************************************************************** ** This file contains an ASCII representation of the text of a ** ** GAO Product. ** ** ** ** No attempt has been made to display graphic images, although ** ** figure captions are reproduced. Tables are included, but ** ** may not resemble those in the printed version. ** ** ** ** Please see the PDF (Portable Document Format) file, when ** ** available, for a complete electronic file of the printed ** ** document's contents. ** ** ** ****************************************************************** GAO-02-633 A Report to the Congress May 2002 FINANCIAL AUDIT Federal Deposit Insurance Corporation Funds? 2001 and 2000 Financial Statements GAO- 02- 633 Letter 1 Auditor?s Report 3 Opinion on BIF?s Financial Statements 3 Opinion on SAIF?s Financial Statements 4 Opinion on FRF?s Financial Statements 4 Opinion on Internal Control 4 Compliance with Laws and Regulations 4 Objectives, Scope, and Methodology 5 Reportable Condition 6 BIF?s Reserve Ratio 8 Future Activities of FRF 10 FDIC Comments and Our Evaluation 13 Bank Insurance Fund?s 14 Financial Statements Statements of Financial Position 14 Statements of Income and Fund Balance 15 Statements of Cash Flows 16 Notes to Financial Statements 17 Savings Association 31 Insurance Fund?s Statements of Financial Position 31 Statements of Income and Fund Balance 32 Financial Statements Statements of Cash Flows 33 Notes to Financial Statements 34 FSLIC Resolution 47 Fund?s Financial Statements of Financial Position 47 Statements of Income and Accumulated Deficit 48 Statements Statements of Cash Flows 49 Notes to Financial Statements 50 Appendixes Appendix I: Comments from the Federal Deposit Insurance Corporation 63 Appendix II: GAO Contacts and Staff Acknowledgements 64 Tables Table 1: BIF?s Reserve Ratios from December 31, 1991, through December 31, 2001 8 Table 2: FRF?s Assets and Liabilities as of January 1, 1996, and December 31, 2001 10 Letter May 21, 2002 To the President of the Senate and the Speaker of the House of Representatives This report presents our opinions on whether the financial statements of the Bank Insurance Fund (BIF), the Savings Association Insurance Fund, and the FSLIC Resolution Fund (FRF) are presented fairly for the years ended December 31, 2001 and 2000. These financial statements are the responsibility of the Federal Deposit Insurance Corporation (FDIC), the administrator of the three funds. This report also presents (1) our opinion on the effectiveness of FDIC?s internal control as of December 31, 2001, (2) our evaluation of FDIC?s compliance with laws and regulations during 2001, and (3) a reportable weakness in information system controls detected during our 2001 audits. In addition, it discusses BIF?s reserve ratio and the future activities of FRF. We conducted our audits pursuant to the provisions of section 17( d) of the Federal Deposit Insurance Act, as amended (12 U. S. C. 1827( d)), and in accordance with U. S. generally accepted government auditing standards. We are sending copies of this report to the chairman and ranking minority member of the Senate Committee on Banking, Housing and Urban Affairs; the chairman and ranking minority member of the House Committee on Financial Services; the chairman of the Board of Directors of the Federal Deposit Insurance Corporation; the chairman of the Board of Governors of the Federal Reserve System; the comptroller of the currency; the director of the Office of Thrift Supervision; the secretary of the treasury; the director of the Office of Management and Budget; and other interested parties. David M. Walker Comptroller General of the United States To the Board of Directors Audi tor? Report s Federal Deposit Insurance Corporation We have audited the statements of financial position as of December 31, 2001 and 2000, for the three funds administered by the Federal Deposit Insurance Corporation (FDIC), the related statements of income and fund balance (accumulated deficit), and the statements of cash flows for the years then ended. In our audits of the Bank Insurance Fund (BIF), the Savings Association Insurance Fund (SAIF), and the FSLIC Resolution Fund (FRF), we found the financial statements of each fund are presented fairly, in all material respects, in conformity with U. S. generally accepted accounting principles; although certain internal controls should be improved, FDIC had effective internal control over financial reporting (including safeguarding of assets) and compliance with laws and regulations; and no reportable noncompliance with the laws and regulations that we tested. The following sections discuss our conclusions in more detail. They also present information on (1) the scope of our audits, (2) a reportable condition 1 related to information system control weaknesses, (3) BIF?s reserve ratio, (4) the future activities of FRF, and (5) our evaluation of the FDIC?s comments on a draft of this report. Opinion on BIF?s The financial statements including the accompanying notes present fairly, Financial Statements in all material respects, in conformity with U. S. generally accepted accounting principles, BIF?s financial position as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended. 1 Reportable conditions involve matters coming to the auditor?s attention that, in the auditor?s judgment, should be communicated because they represent significant deficiencies in the design or operation of internal control and could adversely affect FDIC?s ability to meet the control objectives described in this report. Opinion on SAIF?s The financial statements including the accompanying notes present fairly, Financial Statements in all material respects, in conformity with U. S. generally accepted accounting principles, SAIF?s financial position as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended. Opinion on FRF?s The financial statements including the accompanying notes present fairly, Financial Statements in all material respects, in conformity with U. S. generally accepted accounting principles, FRF?s financial position as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years then ended. Opinion on Internal Although certain internal controls should be improved, FDIC management Control maintained, in all material respects, effective internal control over financial reporting (including safeguarding assets) and compliance as of December 31, 2001, that provided reasonable assurance that misstatements, losses, or noncompliance, material in relation to the FDIC funds? financial statements would be prevented or detected on a timely basis. Our opinion is based on criteria established under 31 U. S. C. 3512 [Federal Managers? Financial Integrity Act (FMFIA)]. Our work identified weaknesses in FDIC?s information system controls, which we describe as a reportable condition in a later section of this report. The weakness in information system controls, although not considered material, represents a significant deficiency in the design or operations of internal control that could adversely affect FDIC?s ability to meet its internal control objectives. Although the weakness did not materially affect the funds? 2001 financial statements, misstatements may nevertheless occur in other FDIC- reported financial information as a result of the internal control weakness. Compliance with Laws Our tests for compliance with selected provisions of laws and regulations and Regulations disclosed no instances of noncompliance that would be reportable under U. S. generally accepted government auditing standards. However, the objective of our audits was not to provide an opinion on overall compliance with laws and regulations. Accordingly, we do not express such an opinion. Objectives, Scope, and FDIC?s management is responsible for (1) preparing the annual financial Methodology statements in conformity with U. S. generally accepted accounting principles, (2) establishing, maintaining, and assessing internal control to provide reasonable assurance that the broad control objectives of FMFIA are met, and (3) complying with applicable laws and regulations. We are responsible for obtaining reasonable assurance about whether (1) the financial statements are presented fairly, in all material respects, in conformity with U. S. generally accepted accounting principles, and (2) management maintained effective internal control, the objectives of which are financial reporting- transactions are properly recorded, processed, and summarized to permit the preparation of financial statements in conformity with U. S. generally accepted accounting principles, and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and compliance with laws and regulations- transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements. We are also responsible for testing compliance with selected provisions of laws and regulations that have a direct and material effect on the financial statements. In order to fulfill these responsibilities, we examined, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessed the accounting principles used and significant estimates made by management; evaluated the overall presentation of the financial statements; obtained an understanding of internal control related to financial reporting (including safeguarding assets) and compliance with laws and regulations; tested relevant internal controls over financial reporting and compliance, and evaluated the design and operating effectiveness of internal control; considered FDIC?s process for evaluating and reporting on internal control based on criteria established by FMFIA; and tested compliance with selected provisions of the Federal Deposit Insurance Act, as amended and the Chief Financial Officers Act of 1990. We did not evaluate all internal controls relevant to operating objectives as broadly defined by FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient operations. We limited our internal control testing to controls over financial reporting and compliance. Because of inherent limitations in internal control, misstatements due to error or fraud, losses, or noncompliance may nevertheless occur and not be detected. We also caution that projecting our evaluation to future periods is subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with controls may deteriorate. We did not test compliance with all laws and regulations applicable to FDIC. We limited our tests of compliance to those deemed applicable to the funds? financial statements for the year ended December 31, 2001. We caution that noncompliance may occur and not be detected by these tests and that such testing may not be sufficient for other purposes. We performed our work in accordance with U. S. generally accepted government auditing standards. FDIC provided comments on a draft of this report. They are discussed and evaluated in a later section of this report and are reprinted in appendix I. Reportable Condition As part of the funds? financial statement audits, we reviewed FDIC?s information system controls. The primary objectives of information system controls are to safeguard data, protect computer application programs, provide for the integrity of system software, and ensure continued computer operations in case of unexpected interruption. These controls include the corporatewide security management program, access controls, system software, application development and change control, segregation of duties, and service continuity controls. During 2001, we found that FDIC progressed in improving information system control weaknesses we had previously identified and has taken other steps to improve security. Nevertheless, we identified additional weaknesses in FDIC?s corporatewide security management program, access controls, system software, segregation of duties, and service continuity controls. Specifically, FDIC did not adequately limit the scope of access granted to authorized users or secure its network from unauthorized access. Further, FDIC had not fully established a comprehensive program to routinely oversee and monitor access to its computer facilities and data and to identify unusual or suspicious access patterns that could indicate unauthorized access. The effect of these weaknesses in information system controls places FDIC?s financial information at risk of unauthorized disclosure or loss and its critical financial operations at risk of disruption. It should also be noted that because computer systems identified at risk contain other sensitive information such as personnel data and bank examinations related to financial institutions insured by FDIC, this information is at risk of being compromised. As we have previously reported to FDIC?s Board of Directors, the primary reason for its information system control weaknesses has been that FDIC had not fully developed and implemented a comprehensive corporatewide security management program. An effective program would include assessing risks, establishing appropriate policies and related controls, raising awareness of prevailing risks and mitigating controls, and evaluating the effectiveness of established controls. While FDIC has implemented a security awareness program, updated its security policies and guidance, and taken other actions to improve security management, it still needs to take additional steps to fully implement a comprehensive corporatewide security management program. We determined that other management controls mitigated the effect of the information system control weaknesses on the preparation of the funds? financial statements. Because of their sensitive nature, the details surrounding these weaknesses are being reported separately to FDIC management, along with our recommendations for corrective actions. BIF?s Reserve Ratio During 2001, as table 1 shows, BIF?s reserve ratio decreased from 1.35 percent to 1. 26 percent. The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) requires FDIC to maintain the BIF fund balance at a designated reserve ratio of at least 1. 25 percent of estimated insured deposits. 2 BIF?s reserve ratio was significantly below the designated reserve ratio in 1991 and did not reach the designated reserve ratio of 1.25 percent of estimated insured deposits until May 1995. 3 This is the first time since 1995 that the BIF?s ratio has come so close to the designated reserve ratio. Table 1 shows BIF?s reserve ratio, fund balance, and estimated insured deposits from December 31, 1991 through 2001. Table 1: BIF?s Reserve Ratios from December 31, 1991, through December 31, 2001 Dollars in millions Estimated insured December 31, Reserve ratio (%) Fund balance deposits 1991 (. 36) $( 7, 028) $1,957, 722 1992 (. 01) (101) 1,945, 623 1993 .69 13, 122 1,906, 885 1994 1. 15 21, 848 1, 896, 060 1995 1. 30 25, 454 1, 952, 543 1996 1. 34 26, 854 2,007, 447 1997 1. 38 28, 293 2,055, 874 1998 1. 38 29, 612 2,141, 268 1999 1. 36 29, 414 2,157, 536 2000 1. 35 30, 975 2,301, 604 2001 1. 26 30, 439 2,408, 878 2 Section 302 of FDICIA amended section 7( b) of the Federal Deposit Insurance Act. FDICIA requirements are the same for both BIF and SAIF. SAIF reached the designated reserve ratio in 1996, and as of December 31, 2001, SAIF?s reserve ratio was 1.36 percent. 3 If the reserve ratio falls below 1.25 percent of estimated insured deposits, FDICIA requires FDIC?s Board of Directors to set semiannual assessment rates for BIF members that are sufficient to increase the reserve ratio to the designated reserve ratio not later than 1 year after such rates are set, or in accordance with a recapitalization schedule of 15 years or less. Under FDIC?s required risk- based insurance system, as long as BIF?s reserve ratio is at or above 1. 25 percent, FDIC does not charge premiums to most institutions that are well- capitalized and highly rated by supervisors. Currently over 90 percent of the industry does not pay for deposit insurance. Most of BIF?s income comes from the interest earned on investments with the U. S. Treasury. BIF?s fund balance and level of estimated insured deposits are the factors used to calculate BIF?s reserve ratio. Accordingly, changes in fund balance or insured deposits can cause the reserve ratio to increase or decrease. Table 1 shows that during 2001 the estimated insured deposits increased by over $100 billion. To illustrate the sensitivity of this reserve ratio calculation, if the amount of estimated insured deposits had increased by an additional $26 billion during 2001, BIF?s reserve ratio would have declined to the designated reserve ratio of 1.25 percent at December 31, 2001. Regarding the other key variable in the calculation, BIF?s fund balance declined about $500 million during 2001. This $500 million net loss for 2001 is largely attributable to recording $1.8 billion of estimated losses for anticipated failures of insured institutions. Assuming the December 31, 2001, level of estimated insured deposits, if BIF had incurred an additional $328 million of losses to the fund balance during 2001, its reserve ratio would have declined to the designated reserve ratio of 1.25 percent at December 31, 2001. Currently, there is proposed legislation in Congress to reform the federal deposit insurance system. Among other things, this legislation proposes changes to the designated reserve ratio requirements. Future Activities of FDIC, as administrator of FRF, is responsible for completing the FRF liquidation of the assets and liabilities of the former Federal Savings and Loan Insurance Corporation (FSLIC) and Resolution Trust Corporation (RTC). 4 Under current legislation, FRF will continue its operations until all of its assets are sold or otherwise liquidated and all of its liabilities are satisfied. As shown in table 2, FRF has made significant progress in liquidating its assets and liabilities since 1996. FDIC expects continued rapid decline in the remaining FRF assets during 2002. After providing for all outstanding RTC liabilities, FDIC must also transfer the net proceeds from the sale of RTC- related assets to the Resolution Funding Corporation (REFCORP). 5 During 2001, FRF transferred $1.4 billion to REFCORP. Table 2: FRF?s Assets and Liabilities as of January 1, 1996, and December 31, 2001 Dollars in billions Percent January 1, December 31, increase 1996 2001 (decrease) Cash and cash equivalents $1.5 $3. 5 133 Assets not yet liquidated 13.9 1. 4 (90) Total assets $15.4 $4.9 (68) Total liabilities $11.2 $0.02 (99) 4 On January 1, 1996, FRF assumed responsibility for all remaining assets and liabilities of the former RTC. 5 The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 established REFCORP to provide part of the initial funds used by RTC for thrift resolutions. Two major components of the assets not yet liquidated are receivables from thrift resolutions (about $0. 3 billion) and investments in securitization- related assets (nearly $1. 1 billion). Most of the receivables from thrift resolutions represent amounts advanced and/ or obligations incurred for resolving troubled and failed insured thrifts. FDIC manages and disposes of the assets from failed thrifts through receiverships. 6 Most of the remaining assets in these receiverships are cash. FDIC is pursuing the complete liquidation of these receiverships during the year 2002 with the exception of those involved in goodwill litigation. 7 FDIC has conducted an extensive review and cataloging of FRF?s residual assets and liabilities and is beginning to explore approaches for concluding FRF?s activities. The following are some of the issues and items remaining in FRF: Over 900 criminal restitution orders in the amount of $548 million are outstanding. These may remain open for up to 20 more years. The actual amount that will ultimately be collected is unknown. 8 During 2001, FDIC collected $6.6 million from these outstanding restitution orders. About 80 litigation claims and judgments- which were obtained against officers and directors and other professionals responsible for causing thrift losses- are outstanding. These items have an estimated recoverable value of approximately $59 million. These judgments are renewable based on individual state law. Generally, the renewals vary from 5 to 10 years and are renewable more than once. 9 During 2001 FDIC recovered $19.2 million in such claims. 6 The assets held by receiverships, and the claims against them, are accounted for separately from FRF?s assets and liabilities to ensure that liquidation proceeds are distributed in accordance with applicable laws and regulations. 7 See note 7 of FRF?s financial statements for a description of goodwill litigation and its impact. 8 U. S. generally accepted accounting principles state that contingencies that may ultimately result in gains are usually not reflected in the financial statements to avoid recognizing revenue prior to its realization. 9 See footnote 8 of this report. Numerous assistance agreements entered into by the former FSLIC will remain open for many years as those assisted institutions share with FRF their tax savings that result from the tax- free nature of FSLIC assistance. 10 During 2001, FRF recovered over $163 million as its share of these tax savings. Various litigation cases are outstanding. FRF remains involved in approximately 760 cases. 11 The most numerous, and substantial in terms of potential liability, involve goodwill litigation. 12 To date, approximately 120 lawsuits have been filed against the U. S. government. Because of appeals and differences in awarding damages in the cases thus far, the final outcome in the cases and the amount of any possible damages remain uncertain. Also, there is litigation in which FRF is the plaintiff for itself or is acting in a fiduciary manner on behalf of the receiverships resulting from failed financial institutions. These pending cases may take years to settle, and many of the goodwill cases are still pending from the early 1990s. Numerous potential liabilities may exist due to representations and warranties made to support the sale of assets including loans and servicing rights. 13 These potential liabilities could be incurred over the remaining life of the loans. Only when the remaining asset and liability issues, some of which are highlighted above, are resolved can the FRF fund be formally dissolved. FDIC is considering whether enabling legislation or other measures may be needed to liquidate the remaining FRF assets and liabilities. 10 See footnote 8 of this report. 11 Whereas FRF is involved in over 700 cases, FDIC records losses for only those cases where the loss is considered probable and reasonably estimable. FDIC also discloses losses that are reasonably possible. See note 7 of FRF?s financial statements. 12 See note 7 of FRF?s financial statements for a description of goodwill litigation and its impact. 13 See note 7 of FRF?s financial statements for a description of representations and warranties. FDIC Comments and In commenting on a draft of this report, FDIC?s chief financial officer Our Evaluation (CFO) was pleased to receive unqualified opinions on BIF?s, SAIF?s, and FRF?s 2001 and 2000 financial statements. FDIC?s CFO also acknowledged the information system weaknesses we identified and plans to continue with its efforts to strengthen its information system program and to incorporate GAO's recommendations into its security plans for 2002. We plan to evaluate the effectiveness of the corrective actions as part of our 2002 audit of FDIC funds? financial statements and internal control. David M. Walker Comptroller General of the United States April 5, 2002 Bank Insurance Fund?s Financial Statements Statements of Financial Position Statements of Income and Fund Balance Statements of Cash Flows Notes to Financial Statements Savings Association Insurance Fund?s Financial Statements Statements of Financial Position Statements of Income and Fund Balance Statements of Cash Flows Notes to Financial Statements FSLIC Resolution Fund?s Financial Statements Statements of Financial Position Statements of Income and Accumulated Deficit Statements of Cash Flows Notes to Financial Statements Appendi xes Comments from the Federal Deposit Appendi x I Insurance Corporation Appendi x II GAO Contacts and Staff Acknowledgements GAO Contacts Jeanette M. Franzel (202) 512- 9406 Lynda E. Downing (202) 512- 9168 Acknowledgements In addition to those named above, the following staff made key contributions to this report: Gary P. Chupka, Dennis L. Clarke, John C. Craig, Bronwyn E. Hughes, and Timothy J. Murray. The following staff from the FDIC Office of Inspector General also contributed to this report: Robert W. Allmang, James J. Ballenger, Arlene S. Boateng, Rhonda G. Bunte, W. Kevin Hainsworth, R. William Harrington, Paul S. Johnston, Michael L. Rexrode, Duane H. Rosenberg, Titus S. Simmons, Dale W. Seeley, Ross E. Simms, Charles E. Thompson, Joseph E. Uricheck, and R. Leon Wellons. (194018) a GAO United States General Accounting Office Page i GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Contents Contents Page ii GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 1 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements United States General Accounting Office Washington, D. C. 20548 Comptroller General of the United States A Page 2 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 3 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements United States General Accounting Office Washington, D. C. 20548 Comptroller General of the United States A Page 4 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 5 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 6 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 7 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 8 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 9 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 10 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 11 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 12 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 13 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 14 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 15 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 16 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 17 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 18 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 19 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 20 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 21 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 22 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 23 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 24 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 25 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 26 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 27 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 28 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 29 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Bank Insurance Fund?s Financial Statements Page 30 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 31 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 32 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 33 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 34 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 35 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 36 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 37 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 38 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 39 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 40 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 41 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 42 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 43 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 44 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 45 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Savings Association Insurance Fund?s Financial Statements Page 46 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 47 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 48 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 49 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 50 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 51 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 52 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 53 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 54 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 55 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 56 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 57 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 58 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 59 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 60 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 61 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements FSLIC Resolution Fund?s Financial Statements Page 62 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Page 63 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Appendix I Page 64 GAO- 02- 633 FDIC Funds' 2001 and 2000 Financial Statements Appendix II GAO?s Mission The General Accounting Office, the investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. 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