§ 1827. — Reports by Corporation; audit of financial transactions; report on audits; employment of certified public accountants for audits.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1827]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1827. Reports by Corporation; audit of financial
transactions; report on audits; employment of certified public
accountants for audits
(a) Annual reports on BIF, SAIF, and the FSLIC Resolution Fund
(1) In general
The Corporation shall annually submit a full report of its
operations, activities, budget, receipts, and expenditures for the
preceding 12-month period. The report shall include, with respect to
the Bank Insurance Fund, the Savings Association Insurance Fund, and
the FSLIC Resolution Fund, an analysis by the Corporation of--
(A) the current financial condition of each such fund;
(B) the purpose, effect, and estimated cost of each
resolution action taken for an insured depository institution
during the preceding year;
(C) the extent to which the actual costs of assistance
provided to, or for the benefit of, an insured depository
institution during the preceding year exceeded the estimated
costs of such assistance reported in a previous year under
paragraph (A);
(D) the exposure of each insurance fund to changes in those
economic factors most likely to affect the condition of that
fund;
(E) a current estimate of the resources needed for the Bank
Insurance Fund, the Savings Association Insurance Fund, or the
FSLIC Resolution Fund to achieve the purposes of this chapter;
and
(F) any findings, conclusions, and recommendations for
legislative and administrative actions considered appropriate to
future resolution activities by the Corporation.
(2) Manner of submission
Such report shall be submitted to the President of the Senate
and the Speaker of the House of Representatives, who shall cause the
same to be printed for the information of Congress, and the
President as soon as practicable after the first day of January each
year.
(3) Coordination with other report requirements
The report required under this subsection shall include the
report required under section 57a(f)(7) of title 15.
(b) Quarterly reports to Treasury
(1) Financial operating plans and forecasts
Before the beginning of each fiscal quarter, the Corporation
shall provide to the Secretary of the Treasury a copy of the
Corporation's financial operating plans and forecasts.
(2) Financial condition and reports of operations
As soon as practicable after the end of each fiscal quarter, the
Corporation shall submit to the Secretary of the Treasury a copy of
the report of the Corporation's financial condition as of the end of
such fiscal quarter and the results of the Corporation's operations
during such fiscal quarter.
(3) Items to be included
The plans, forecasts, and reports required under this subsection
shall reflect the estimates required to be made under section
1825(b) of this title of the liabilities and obligations of the
Corporation described in such section.
(4) Rule of construction
The requirement to provide plans, forecasts, and reports to the
Secretary of the Treasury under this subsection may not be construed
as implying any obligation on the part of the Corporation to obtain
the consent or approval of such Secretary with respect to such
plans, forecasts, and reports.
(c) Reports to OMB
(1) Financial information
The Corporation shall continue to provide to the Director of the
Office of Management and Budget financial information consistent
with that contained in the reports that were being provided to the
Director immediately prior to the effective date of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989.
(2) Financial operating plans and forecasts
The Corporation shall also provide to the Director copies of the
Corporation's financial operating plans and forecasts as prepared by
the Corporation in the ordinary course of its operations, and copies
of the quarterly reports of the Corporation's financial condition
and results of operations as prepared by the Corporation in the
ordinary course of its operations.
(3) Rule of construction
This subsection may not be construed as implying any obligation
on the part of the Corporation to consult with or obtain the consent
or approval of the Director with respect to any reports, plans,
forecasts, or other information referred to in paragraph (1) or (2)
or any jurisdiction or oversight over the affairs or operations of
the Corporation.
(d) Audit
(1) Audit required
The Comptroller General shall audit annually the financial
transactions of the Corporation, the Bank Insurance Fund, the
Savings Association Insurance Fund, and the FSLIC Resolution Fund in
accordance with generally accepted government auditing standards.
(2) Access to books and records
All books, records, accounts, reports, files, and property
belonging to or used by the Corporation, the Bank Insurance Fund,
the Savings Association Insurance Fund, and the FSLIC Resolution
Fund, or by an independent certified public accountant retained to
audit the Fund's financial statements, shall be made available to
the Comptroller General.
(e) Audit of Corporation
The financial transactions of the Corporation shall be audited by
the General Accounting Office in accordance with the principles and
procedures applicable to commercial corporate transactions and under
such rules and regulations as may be prescribed by the Comptroller
General of the United States. The audit shall be conducted at the place
or places where accounts of the Corporation are normally kept. The
representatives of the General Accounting Office shall have access to
all books, accounts, records, reports, files, and all other papers,
things, or property belonging to or in use by the Corporation pertaining
to its financial transactions and necessary to facilitate the audit, and
they shall be afforded full facilities for verifying transactions with
the balances or securities held by depositaries, fiscal agents, and
custodians. All such books, accounts, records, reports, files, papers,
and property of the Corporation shall remain in possession and custody
of the Corporation. The audit shall begin with financial transactions
occurring on and after August 31, 1948. The Corporation shall be audited
at least once in every three years.
(f) Report of audit
A report of each audit conducted under subsection (b) of this
section shall be made by the Comptroller General to the Congress not
later than six and one-half months following the close of the last year
covered by such audit. The report to the Congress shall set forth the
scope of the audit and shall include a statement of assets and
liabilities and surplus or deficit; a statement of surplus or deficit
analysis; a statement of income and expenses; a statement of sources and
application of funds and such comments and information as may be deemed
necessary to inform Congress of the financial operations and condition
of the Corporation, together with such recommendations with respect
thereto as the Comptroller General may deem advisable. The report shall
also show specifically any program, expenditure, or other financial
transaction or undertaking observed in the course of the audit, which,
in the opinion of the Comptroller General, has been carried on or made
without authority of law. A copy of each report shall be furnished to
the President, to the Secretary of the Treasury, and to the Corporation
at the time submitted to the Congress.
(g) Assistance in audit; costs
For the purpose of conducting such audit the Comptroller General is
authorized in his discretion to employ by contract, without regard to
section 5 of title 41, professional services of firms and organizations
of certified public accountants, with the concurrence of the
Corporation, for temporary periods or for special purposes. The
Corporation shall reimburse the General Accounting Office for the cost
of any such audit as billed therefor by the Comptroller General, and the
General Accounting Office shall deposit the sums so reimbursed into the
Treasury as miscellaneous receipts.
(Sept. 21, 1950, ch. 967, Sec. 2[17], 64 Stat. 890; Pub. L. 93-604,
title VI, Sec. 602, Jan. 2, 1975, 88 Stat. 1963; Pub. L. 101-73, title
II, Sec. 220(a), Aug. 9, 1989, 103 Stat. 263; Pub. L. 102-242, title IV,
Sec. 427, Dec. 19, 1991, 105 Stat. 2378; Pub. L. 104-208, div. A, title
II, Sec. 2704(d)(14)(S), (T), Sept. 30, 1996, 110 Stat. 3009-493, 3009-
494; Pub. L. 106-569, title XI, Secs. 1103(a), 1104(b), Dec. 27, 2000,
114 Stat. 3030, 3032.)
References in Text
The effective date of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989, referred to in subsec. (c)(1), probably
means the date of enactment of Pub. L. 101-73, which was approved Aug.
9, 1989.
Prior Provisions
Subsec. (a) is derived from subsec. (r) of former section 264 of
this title. See Codification note set out under section 1811 of this
title.
Amendments
2000--Subsec. (a)(3). Pub. L. 106-569, Sec. 1103(a), added par. (3).
Subsec. (h). Pub. L. 106-569, Sec. 1104(b), struck out subsec. (h)
which related to additional reports.
1996--Subsec. (a). Pub. L. 104-208, Sec. 2704(d)(14)(S), which
directed substitution of ``the Deposit Insurance Fund'' for ``BIF,
SAIF,'' in heading and ``the Deposit Insurance Fund'' for ``the Bank
Insurance Fund, the Savings Association Insurance Fund,'' wherever
appearing in par. (1), was not executed. See Effective Date of 1996
Amendment note below.
Subsec. (d). Pub. L. 104-208, Sec. 2704(d)(14)(T), which directed
substitution of ``the Deposit Insurance Fund'' for ``the Bank Insurance
Fund, the Savings Association Insurance Fund,'' in two places, was not
executed. See Effective Date of 1996 Amendment note below.
1991--Subsec. (h). Pub. L. 102-242 added subsec. (h).
1989--Subsec. (a). Pub. L. 101-73, Sec. 220(a)(1), added heading and
text and struck out former subsec. (a) which read as follows: ``The
Corporation shall annually make a report of its operations to the
Congress as soon as practicable after the 1st day of January in each
year.''
Subsecs. (b) to (g). Pub. L. 101-73, Sec. 220(a)(2), (3), added
subsecs. (b) to (d) and redesignated former subsecs. (b) to (d) as (e)
to (g), respectively.
1975--Subsec. (b). Pub. L. 93-604, Sec. 602(a), inserted provisions
that the Corporation shall be audited at least once in every three
years.
Subsec. (c). Pub. L. 93-604, Sec. 602(b), substituted provisions
that a report of each audit conducted under subsec. (b) of this section
shall be made by the Comptroller General to the Congress not later than
six and one-half months following the close of previous year covered by
such audit, for provisions that a report of the audit for each fiscal
year ending on June 30 shall be made by the Comptroller General to the
Congress not later than Jan. 15 following the close of such fiscal year.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-208 effective Jan. 1, 1999, if no insured
depository institution is a savings association on that date, see
section 2704(c) of Pub. L. 104-208, set out as a note under section 1821
of this title.
Final Reports on RTC and SAIF Funding
Pub. L. 103-204, Sec. 28, Dec. 17, 1993, 107 Stat. 2410, provided
that:
``(a) In General.--
``(1) RTC report.--The Chairperson of the Thrift Depositor
Protection Oversight Board shall prepare and submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives, a final report containing a detailed description of
the purposes for which the funds made available to the Resolution
Trust Corporation under this Act [See Short Title of 1993 Amendment
note set out under section 1421 of this title] were used.
``(2) SAIF report.--The Chairperson of the Federal Deposit
Insurance Corporation shall prepare and submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee
on Banking, Finance and Urban Affairs of the House of
Representatives a final report containing a detailed description of
the purposes for which the funds made available to the Savings
Association Insurance Fund under this Act were used.
``(b) Time for Submission.--The reports described in subsection (a)
shall be transmitted--
``(1) not later than 45 days after the final expenditure of
funds provided for under this Act by the Resolution Trust
Corporation; and
``(2) not later than 45 days after the final expenditure of
funds authorized to be provided under this Act by the Savings
Association Insurance Fund.''
Report to Congress on Risk-Based Assessments
Section 220(b)(1) of Pub. L. 101-73 directed Federal Deposit
Insurance Corporation to study establishment of premium assessment
categories related to types of risk to insurance funds and report its
recommendations to Congress not later than Jan. 1, 1991; if Corporation
recommended establishment of such a risk-based assessment plan, it was
to provide a timetable and plan for implementation; and not later than
180 days after receipt of report and accompanying plan and timetable,
Congress was to make a recommendation to Chairperson of Board of
Directors regarding disposition of such plan and timetable.
