12 U.S.C. § 5226
Section 5226 · Oversight and audits
Current version, with additions and removals from the May 20, 2009 version.
(1) Scope of oversight
(1) Scope of oversight
The Comptroller General of the United States shall, upon establishment of the troubled assets relief program 1 under this chapter (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 representative's activities on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this chapter. The subjects of such oversight shall include the following:
The Comptroller General of the United States shall, upon establishment of the troubled assets relief program 1 under this chapter (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 representative's activities on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this chapter. The subjects of such oversight shall include the following:
(A) The performance of the TARP in meeting the purposes of this chapter, particularly those involving—
(A) The performance of the TARP in meeting the purposes of this chapter, particularly those involving—
(i) foreclosure mitigation;
(i) foreclosure mitigation;
(ii) cost reduction;
(ii) cost reduction;
(iii) whether it has provided stability or prevented disruption to the financial markets or the banking system;
(iii) whether it has provided stability or prevented disruption to the financial markets or the banking system;
(iv) whether it has protected taxpayers; and
(iv) whether it has protected taxpayers; and
(v) public accountability for the exercise of such authority, including with respect to actions taken by those entities participating in programs established under this chapter.
(v) public accountability for the exercise of such authority, including with respect to actions taken by those entities participating in programs established under this chapter.
(B) The financial condition and internal controls of the TARP, its representatives and agents.
(B) The financial condition and internal controls of the TARP, its representatives and agents.
(C) 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.
(C) 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.
(D) Characteristics and disposition of acquired assets, including type, acquisition price, current market value, sale prices and terms, and use of proceeds from sales.
(D) Characteristics and disposition of acquired assets, including type, acquisition price, current market value, sale prices and terms, and use of proceeds from sales.
(E) Efficiency of the operations of the TARP in the use of appropriated funds.
(E) Efficiency of the operations of the TARP in the use of appropriated funds.
(F) Compliance with all applicable laws and regulations by the TARP, its agents and representatives.
(F) Compliance with all applicable laws and regulations by the TARP, its agents and representatives.
(G) 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.
(G) 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.
(2) Conduct and administration of oversight
(2) Conduct and administration of oversight
(A) Definition
(A) Definition
In this paragraph, the term “governmental unit” has the meaning given under section 101(27) of title 11, and does not include any insured depository institution as defined under section 1813 of this title.
In this paragraph, the term "governmental unit" has the meaning given under section 101(27) of title 11, and does not include any insured depository institution as defined under section 1813 of this title.
(B) GAO presence
(B) 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 5230 3 of this title.
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 5230 3 of this title.
(C) Access to records
(C) Access to records
(i) In general
(i) In general
Notwithstanding any other provision of law, and for purposes of reviewing the performance of the TARP, 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, any entity established by the Secretary under this chapter, any entity that is established by a Federal reserve bank and receives funding from the TARP, or any entity (other than a governmental unit) participating in a program established under the authority of this chapter, and to the officers, employees, directors, independent public accountants, financial advisors and any and all other agents and representatives thereof, at such time as the Comptroller General may request.
Notwithstanding any other provision of law, and for purposes of reviewing the performance of the TARP, 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, any entity established by the Secretary under this chapter, any entity that is established by a Federal reserve bank and receives funding from the TARP, or any entity (other than a governmental unit) participating in a program established under the authority of this chapter, and to the officers, employees, directors, independent public accountants, financial advisors and any and all other agents and representatives thereof, at such time as the Comptroller General may request.
(ii) Verification
(ii) Verification
The Comptroller General shall be afforded full facilities for verifying transactions with the balances or securities held by, among others, depositories, fiscal agents, and custodians.
The Comptroller General shall be afforded full facilities for verifying transactions with the balances or securities held by, among others, depositories, fiscal agents, and custodians.
(iii) Copies
(iii) Copies
The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General determines appropriate.
The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General determines appropriate.
(D) Agreement by entities
(D) Agreement by entities
Each contract, term sheet, or other agreement between the Secretary or the TARP (or any TARP vehicle, officer, director, employee, independent public accountant, financial advisor, or other TARP agent or representative) and an entity (other than a governmental unit) participating in a program established under this chapter shall provide for access by the Comptroller General in accordance with this section.
Each contract, term sheet, or other agreement between the Secretary or the TARP (or any TARP vehicle, officer, director, employee, independent public accountant, financial advisor, or other TARP agent or representative) and an entity (other than a governmental unit) participating in a program established under this chapter shall provide for access by the Comptroller General in accordance with this section.
(E) Restriction on public disclosure
(E) Restriction on public disclosure
(i) In general
(i) In general
The Comptroller General may not publicly disclose proprietary or trade secret information obtained under this section.
The Comptroller General may not publicly disclose proprietary or trade secret information obtained under this section.
(ii) Exception for congressional committees
(ii) Exception for congressional committees
This subparagraph does not limit disclosures to congressional committees or members thereof having jurisdiction over a private or public entity referred to under subparagraph (C).
This subparagraph does not limit disclosures to congressional committees or members thereof having jurisdiction over a private or public entity referred to under subparagraph (C).
(iii) Rule of construction
(iii) Rule of construction
Nothing in this section shall be construed to alter or amend the prohibitions against the disclosure of trade secrets or other information prohibited by section 1905 of title 18, section 714(c) of title 31, or other applicable provisions of law.
Nothing in this section shall be construed to alter or amend the prohibitions against the disclosure of trade secrets or other information prohibited by section 1905 of title 18, section 714(c) of title 31, or other applicable provisions of law.
(F) Reimbursement of costs
(F) 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.
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
(3) Reporting
(1) Annual audit
(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 Accountability 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.
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 Accountability 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.
(2) Authority
(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 representative's activities on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this chapter.
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 representative's activities on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this chapter.
(3) Corrective responses to audit problems
(3) Corrective responses to audit problems
The TARP shall—
The TARP shall—
(A) take action to address deficiencies identified by the Comptroller General or other auditor engaged by the TARP; or
(A) take action to address deficiencies identified by the Comptroller General or other auditor engaged by the TARP; or
(B) certify to appropriate committees of Congress that no action is necessary or appropriate.
(B) certify to appropriate committees of Congress that no action is necessary or appropriate.
(1) Establishment
(1) Establishment
The TARP shall establish and maintain an effective system of internal control, consistent with the standards prescribed under section 3512(c) of title 31, that provides reasonable assurance of—
The TARP shall establish and maintain an effective system of internal control, consistent with the standards prescribed under section 3512(c) of title 31, that provides reasonable assurance of—
(A) the effectiveness and efficiency of operations, including the use of the resources of the TARP;
(A) the effectiveness and efficiency of operations, including the use of the resources of the TARP;
(B) the reliability of financial reporting, including financial statements and other reports for internal and external use; and
(B) the reliability of financial reporting, including financial statements and other reports for internal and external use; and
(C) compliance with applicable laws and regulations.
(C) compliance with applicable laws and regulations.
(2) Reporting
(2) Reporting
In conjunction with each annual financial statement issued under this section, the TARP shall—
In conjunction with each annual financial statement issued under this section, the TARP shall—
(A) state the responsibility of management for establishing and maintaining adequate internal control over financial reporting; and
(A) state the responsibility of management for establishing and maintaining adequate internal control over financial reporting; and
(B) 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.
(B) 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.
Any report or audit required under this section shall also be submitted to the Congressional Oversight Panel established under section 5233 of this title.
Any report or audit required under this section shall also be submitted to the Congressional Oversight Panel established under section 5233 of this title.
Any oversight, reporting, or audit requirement under this section shall terminate on the later of—
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 5211 of this title has been sold or transferred out of the ownership or control of the Federal Government; or
(1) the date that the last troubled asset acquired by the Secretary under section 5211 of this title 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 5212 of this title.
(2) the date of expiration of the last insurance contract issued under section 5212 of this title.