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Emergency Economic Stabilization Act of 2008

2 section comments

Title I - Troubled Assets Relief Program

Sec. 116. Oversight and Audits.

  1. COMPTROLLER GENERAL OVERSIGHT.




    1. SCOPE OF OVERSIGHT.The Comptroller General of the United States shall, upon establishment of the troubled assets relief program under this Act (in this section referred to as the "TARP"), commence ongoing oversight of the activities and performance of the TARP and of any agents and representatives of the TARP (as related to the agent or representatives activities on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this Act. The subjects of such oversight shall include the following:




      1. The performance of the TARP in meeting the purposes of this Act, particularly those involving




        1. foreclosure mitigation;




        2. cost reduction;




        3. whether it has provided stability or prevented disruption to the financial markets or the banking system; and




        4. whether it has protected taxpayers.






      2. The financial condition and internal controls of the TARP, its representatives and agents.




      3. Characteristics of transactions and commitments entered into, including transaction type, frequency, size, prices paid, and all other relevant terms and conditions, and the timing, duration and terms of any future commitments to purchase assets.




      4. Characteristics and disposition of acquired assets, including type, acquisition price, current market value, sale prices and terms, and use of proceeds from sales.




      5. Efficiency of the operations of the TARP in the use of appropriated funds.




      6. Compliance with all applicable laws and regulations by the TARP, its agents and representatives.




      7. The efforts of the TARP to prevent, identify, and minimize conflicts of interest involving any agent or representative performing activities on behalf of or under the authority of the TARP.




      8. The efficacy of contracting procedures pursuant to section 107(b), including, as applicable, the efforts of the TARP in evaluating proposals for inclusion and contracting to the maximum extent possible of minorities (as such term is defined in 1204© of the Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1811 note), women, and minority- and women-owned businesses, including ascertaining and reporting the total amount of fees paid and other value delivered by the TARP to all of its agents and representatives, and such amounts paid or delivered to such firms that are minority- and women-owned businesses (as such terms are defined in section 21A of the Federal Home Loan Bank Act (U.S.C. 1441a)).






    2. CONDUCT AND ADMINISTRATION OF OVERSIGHT.




      1. GAO PRESENCE.The Secretary shall provide the Comptroller General with appropriate space and facilities in the Department of the Treasury as necessary to facilitate oversight of the TARP until the termination date established in section 120.




      2. ACCESS TORECORDS.To the extent otherwise consistent with law, the Comptroller General shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other papers, things, or property belonging to or in use by the TARP, or any vehicles established by the Secretary under this Act, and to the officers, directors, employees, independent public accountants, financial advisors, and other agents and representatives of the TARP (as related to the agent or representatives activities on behalf of or under the authority of the TARP) or any such vehicle at such reasonable time as the Comptroller General may request. The Comptroller General shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General deems appropriate.




      3. REIMBURSEMENT OF COSTS.The Treasury shall reimburse the Government Accountability Office for the full cost of any such oversight activities as billed therefor by the Comptroller General of the United States. Such reimbursements shall be credited to the appropriation account "Salaries and Expenses, Government Accountability Office" current when the payment is received and remain available until expended.






    3. REPORTING.The Comptroller General shall submit reports of findings under this section, regularly and no less frequently than once every days, to the appropriate committees of Congress, and the Special Inspector General for the Troubled Asset Relief Program established under this Act on the activities and performance of the TARP. The Comptroller may also submit special reports under this subsection as warranted by the findings of its oversight activities.






  2. COMPTROLLER GENERAL AUDITS.




    1. ANNUAL AUDIT.The TARP shall annually prepare and issue to the appropriate committees of Congress and the public audited financial statements prepared in accordance with generally accepted accounting principles, and the Comptroller General shall annually audit such statements in accordance with generally accepted auditing standards. The Treasury shall reimburse the Government Account ability Office for the full cost of any such audit as billed therefor by the Comptroller General. Such reimbursements shall be credited to the appropriation account "Salaries and Expenses, Government Accountability Office" current when the payment is received and remain available until expended. The financial statements prepared under this paragraph shall be on the fiscal year basis prescribed under section 1102 of title 31, United States Code.




    2. AUTHORITY.The Comptroller General may audit the programs, activities, receipts, expenditures, and financial transactions of the TARP and any agents and representatives of the TARP (as related to the agent or representatives activities on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this Act.




    3. CORRECTIVE RESPONSES TO AUDIT PROBLEMS.The TARP shall




      1. take action to address deficiencies identified by the Comptroller General or other auditor engaged by the TARP; or




      2. certify to appropriate committees of Congress that no action is necessary or appropriate.








  3. INTERNAL CONTROL.




    1. ESTABLISHMENT.The TARP shall establish and maintain an effective system of internal control, consistent with the standards prescribed under section 3512© of title 31, United States Code, that provides reasonable assurance of




      1. the effectiveness and efficiency of operations, including the use of the resources of the TARP;




      2. the reliability of financial reporting, including financial statements and other reports for internal and external use; and




      3. compliance with applicable laws and regulations.






    2. REPORTING.In conjunction with each annual financial statement issued under this section, the TARP shall




      1. state the responsibility of management for establishing and maintaining adequate internal control over financial reporting; and




      2. state its assessment, as of the end of the most recent year covered by such financial statement of the TARP, of the effectiveness of the internal control over financial reporting.








  4. SHARING OF INFORMATION.Any report or audit required under this section shall also be submitted to the Congressional Oversight Panel established under section 125.




  5. TERMINATION.Any oversight, reporting, or audit requirement under this section shall terminate on the later of




    1. the date that the last troubled asset acquired by the Secretary under section 101 has been sold or transferred out of the ownership or control of the Federal Government; or




    2. the date of expiration of the last insurance contract issued under section 102.

General Comments on Emergency Economic Stabilization Act of 2008

Dante Montoya, Private Citizen on November 4, 2008

Does no number of days explicitly stated mean that a daily report and update of events, controls and business process due daily to Congress. Lets get the Business Controls established early for the release of these funds to banks, insurance companies and other industy corporations.