Management's Response to the Auditor's Report
Appendix II
February 7, 2019
Mr. James Dalkin Director,
Financial Management and Assurance U.S. Government Accountability Office
441 G Street, NW
Washington, DC 20548
Deputy to the Chairman and CFO
Re: FDIC Management Response to the 2018 Financial Statements Audit Report
Dear Mr. Dalkin:
Thank you for the opportunity to review and comment on the U.S. Government Accountability Office's (GAO's) draft report titled, Financial Audit: Federal Deposit Insurance Corporation Funds' 2018 and 2017 Financial Statements, GAO-19-295R. We are pleased that the Federal Deposit Insurance Corporation (FDIC) has received unmodified opinions for the twenty-seventh consecutive year on the financial statements of its funds: the Deposit Insurance Fund (DIF) and the FSLIC Resolution Fund (FRF). Also, GAO reported that the FDIC had effective internal control over financial reporting, and that there was no reportable noncompliance with provisions of applicable laws, regulations, contracts, and grant agreements that were tested.
During the audit year, the FDIC management and staff worked to improve the internal control environment and will continue to focus on this area in the coming audit year. FDIC recognizes the important role a strong internal control program plays in an agency achieving its mission. We remain committed to ensuring sound financial management remains a top priority.
In complying with audit standards that require management to provide a written assessment about the effectiveness of its internal control over financial reporting, the FDIC has prepared Management's Report on Internal Control over Financial Reporting. The report acknowledges management's responsibility for establishing and maintaining internal control over financial reporting and provides the FDIC's conclusion regarding the effectiveness of its internal control.
We want to thank the GAO staff for their professionalism and dedication during the audit and look forward to another positive and productive relationship during the 2019 audit. If you have any questions or concerns, please do not hesitate to contact me.
Sincerely,
Steven O. App
Deputy to the Chairman and Chief Financial Officer