On February 15, the Federal Deposit Insurance Corporation (FDIC) issued a report regarding its receipt of unqualified audit opinions issued by the Government Accountability Office (GAO) with respect to the financial statements of the two funds it manages – the Deposit Insurance Fund (DIF) and the FSLIC Resolution Fund (FSLIC Fund). The GAO also reported that there were “no material weaknesses or significant deficiencies identified during the period covered by the GAO’s audits with respect to the FDIC’s financial reporting or controls over its financial systems.”

For 2007, the DIF’s comprehensive income rose by $1.0 billion from a year ago and totaled $2.2 billion. According to the FDIC, this year-over-year increase was primarily due to a $611 million increase in assessment revenue, a $299 million increase in interest revenue, a higher contribution from unrealized gain/loss on available-for-sale (AFS) securities of $298 million, offset by a $42 million increase in operating expenses and a $147 million increase in the provision for insurance losses.

The FSLIC Fund’s net income for 2007 was $64 million compared to a $203 million loss for 2006. According to the FDIC, this change was primarily due to an increase in criminal restitution income of $19 million, an increase in the recovery of tax benefits of $33 million, and a decrease in expenses for Goodwill/Guarini litigation settlements/judgments of $215 million.

http://www.fdic.gov/news/news/press/2008/pr08012.html