tailieunhanh - United States General Accounting Office GAO February 1990 Report to the Congress_part4

Tham khảo tài liệu 'united states general accounting office gao february 1990 report to the congress_part4', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | moo Jpcqnpp MMM UOỊS A fBỊJỊ ST siq Note 1. Description of Entity and Significant Accounting Policies continued A. Entity and Mission continued While FHA was established as a separate federal entity it was subsequently merged into the Department of Housing and Urban Development HUD when that department was created. FHA no longer has separate staff or facilities. Instead FHA operations are conducted along with other Housing activities by HUD organizations. FHA is headed by HUD S Assistant Secretary for Housing -Federal Housing Commissioner who reports to the Secretary of HUD. FHA activities are included in the Housing section of the HUD budget. B. Basis of Accounting The Consolidated Statement of Financial Position Statement of Operations and Government Equity and Statement of Cash Flows have been prepared in accordance with generally accepted accounting principles. All interfund balances and transactions have been eliminated. C. Fund Balance with the . Treasury Substantially all of FHA s receipts and disbursements are processed by the . Treasury which in effect maintains FHA s bank accounts. For purposes of the Consolidated Statement of Cash Flows FHA s funds in the . Treasury are considered cash. D. Investments in . Government Securities The National Housing Act as amended limits FHA s investments to non-marketable Treasury interest bearing obligations . investments not sold in public markets . The market value and interest rates established for such investments are the same as those for similar Treasury issues which are publicly marketed. Unlike private sector entities FHA s investment decisions are limited by Treasury policy which 1 only allows FHA to invest in notes and bonds with maturities of six months or more although FHA may invest in Treasury bills with maturities of less than six months and 2 prohibits FHA from engaging in practices that result in windfall gains and profits such as security daytrading and full scale restructuring of .