AGENCY FINANCIAL REPORT | FISCAL YEAR 2021
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

TABLE OF CONTENTS i

TABLE OF CONTENTS

FOREWORD...........................................................................................................................................................................ii

MESSAGE FROM THE AGENCY HEAD FOR THE OFFICE OF FINANCIAL STABILITY .........................iii

EXECUTIVE SUMMARY ...................................................................................................................................................iv

Part 1: Management's Discussion and Analysis

Program Background, Organization Structure, and Operational Goals......................................................1

Active TARP Programs .....................................................................................................................................................2

Analysis of Fiscal Years 2021 and 2020 Financial Summary and Cumulative Net Income ...............6

Analysis of Systems, Controls, and Legal Compliance .....................................................................................12

Limitations of the Financial Statements ................................................................................................................16

Part 2: Financial Section

GOVERNMENT ACCOUNTABILITY OFFICE AUDITOR’S REPORT ..............................................................19

Appendix I: Management’s Report on Internal Control over Financial Reporting.............................24

Appendix II: OFS Response to Auditor’s Report ................................................................................................25

FINANCIAL STATEMENTS ...........................................................................................................................................26

NOTES TO THE FINANCIAL STATEMENTS..........................................................................................................31

REQUIRED SUPPLEMENTARY INFORMATION ..................................................................................................53

Part 3: Other Information (Unaudited)

Additional TARP Historical Information ...............................................................................................................57

TARP Glossary...................................................................................................................................................................61

For the online version of this Report see home.treasury.gov/data/troubled-assets-relief-program

and search on Reports by Frequency, Yearly
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

ii FOREWORD

FOREWORD

The Office of Management and Budget (OMB) Circular A-136 provides agencies with the guidance 

for reporting financial and performance information to Congress, the President, and the American

people on an annual basis. In lieu of the consolidated Performance and Accountability Report (PAR), 

the U.S. Department of the Treasury (Treasury) Office of Financial Stability (OFS) has chosen to 

prepare a series of separate reports to provide the fiscal year 2021 financial and performance 

information for the Troubled Asset Relief Program (TARP). The following Agency Financial Report 

(AFR) is the first in this series of reports, and includes the following components:

• Message from the Agency Head: A statement from the Deputy Assistant Secretary for 

Community and Economic Development providing his assessment of the reliability and 

completeness of the financial and performance data contained in the report, as well as a 

summary status of TARP programs.

• Management’s Discussion and Analysis: This section contains summary information about 

the TARP mission and organizational structure of OFS; background and analysis of OFS 

programs, initiatives and operational goals; and analysis of financial statements, systems, 

controls, and legal compliance, including the Management’s Statement of Assurance.

• Financial Section: This section provides the Independent Auditor’s Report, the financial 

statements, the notes to the financial statements, and other statutory reporting.

• Other Information: This section includes additional TARP historical information and a 

glossary of terms.

In addition to this AFR, the performance section of the OFS fiscal year 2021 Congressional Budget 

Justification satisfies the reporting requirements of the following major legislation:

• Reports Consolidation Act of 2000;

• Government Performance and Results Act of 1993 (GPRA) and GPRA Modernization Act of 

2010;

• Government Management Reform Act of 1994;

• Federal Managers’ Financial Integrity Act of 1982 (FMFIA); and

• Federal Financial Management Improvement Act of 1996 (FFMIA).

These reports will be available on the OFS website at: OFS Financial Reports Archive.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MESSAGE FROM THE AGENCY HEAD iii

MESSAGE FROM THE AGENCY HEAD

FOR THE OFFICE OF FINANCIAL STABILITY

November 4, 2021

I am pleased to present the Office of Financial Stability (OFS) Agency Financial Report for Fiscal 

Year 2021. This report describes our financial and performance results for the 13th year of the 

Troubled Asset Relief Program (TARP). Within this report you will find the comparative fiscal years 

2021 and 2020 financial statements for TARP, the U.S. Government Accountability Office (GAO) 

independent auditor’s report with the audit opinion on these financial statements, an opinion from 

GAO on OFS’s internal control over financial reporting for TARP, and the results of GAO’s tests of 

OFS’s compliance with selected provisions of laws, regulations, contracts, and agreements applicable 

to OFS.

The Emergency Economic Stabilization Act of 2008 (EESA) established OFS within the Office of 

Domestic Finance at the Department of the Treasury (Treasury) to implement TARP. The authority 

to make new commitments through TARP ended October 3, 2010. Since then, Treasury has focused 

on the orderly wind-down of TARP.

As of September 30, 2021, OFS had collected 103 percent of the $412.1 billion in program funds that 

were disbursed under TARP investment programs, in addition to $17.5 billion in proceeds from 

Treasury’s equity stake in American International Group, Inc. Of the original ten investment 

programs, eight are effectively closed. Investment programs with remaining outstanding balances 

include the Capital Purchase Program (CPP, $12 million) and the Community Development Capital 

Initiative (CDCI, $1 million). OFS continues to wind-down those positions as quickly as practicable.

Hardest Hit Fund (HHF) has assisted approximately 418 thousand homeowners in preventing 

foreclosures and helped stabilize neighborhoods in 18 states and the District of Columbia. Making 

Home Affordable (MHA) closed to new applications in December 2016, as required by the 

Consolidated Appropriations Act, 2016. Although MHA is closed to new applicants, OFS continues 

to monitor servicer compliance with guidelines that pertain to post-modification activities.

The financial and performance data contained in this report are reliable and complete. For the 13th

consecutive year, OFS has earned unmodified opinions from the GAO on its financial statements for 

TARP, and its internal control over financial reporting for TARP.

Sincerely,

Noel Poyo

Deputy Assistant Secretary for Community and Economic Development
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

iv EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

It was out of extraordinary circumstances over a 

decade ago that TARP and OFS were created. 

Both were a central part of the emergency 

measures taken by the federal government 

pursuant to EESA. Collectively, TARP and the 

federal government’s other emergency programs 

helped to prevent the collapse of the U.S. 

financial system. Through EESA, the federal 

government was able to limit the broader 

financial and economic damage caused by the 

crisis. Although we are recovering, these 

measures were critical to restarting economic 

growth, and in restoring access to capital and 

credit.

Since late 2010, OFS has focused on carefully 

winding down TARP’s investment programs, 

recovering the OFS’s outstanding investments, 

and continuing to implement the various 

housing programs under TARP to help 

struggling homeowners avoid foreclosure. While 

the total amount disbursed for TARP programs 

was $443.4 billion, OFS has collected $425.5

billion (or $443.1 billion if including the $17.5

billion in proceeds from the additional Treasury 

American International Group, Inc. [AIG] 

shares) through repayments, sales, dividends, 

interest, and other income. As of September 30, 

2021, only $13 million in bank investments 

remain outstanding.

The Management’s Discussion & Analysis 

(MD&A) within this AFR describes the 

establishment of OFS, its background, mission, 

and organizational structure. OFS administers 

programs that fall into two major categories: 

Investments and Housing. In total, OFS had 

responsibility for 13 individual programs. All of 

these programs have either been closed or are in 

the process of winding down.

Each year, OFS reports on our Operational 

Goals, which were developed by management to 

achieve our strategic goal to transform 

government-wide financial stewardship.

These goals include:

1. Completing the wind-down of remaining 

TARP investment programs;

2. Continuing to help struggling 

homeowners avoid foreclosure;

3. Minimizing the cost of the TARP 

programs to the taxpayer; and

4. Operating with the highest standards of 

transparency, accountability, and 

integrity.

The first Operational Goal is to complete the 

wind-down of the remaining TARP investment 

programs, the CPP and CDCI. OFS continues to 

exit CPP and CDCI by either: (i) allowing banks 

that are able to repurchase in full in the near 

future to do so; or (ii) restructuring and selling 

OFS’s investments in limited cases. The 

dividend rate step-ups for CDCI banks took 

effect in 2018, which increased the rate of bank 

repayments.

OFS’s second Operational Goal is to continue 

helping struggling homeowners avoid 

foreclosure. The Consolidated Appropriations 

Act, 2016, signed into law on December 18, 2015, 

provided that the MHA program would 

terminate on December 31, 2016. As set forth in 

program guidelines, MHA servicers were 

required to evaluate applications submitted 

before the deadline and offer trial modifications 

to eligible applicants. All MHA transactions, 

including first and second lien permanent 

modifications, short sales or deeds-in-lieu of 

foreclosure, and unemployment forbearance 

plans, were required to be completed per 

program guidelines by December 1, 2017.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

EXECUTIVE SUMMARY v

The largest program within MHA is HAMP. 

Under this program approximately 1.7 million 

homeowners have had their mortgages modified 

permanently. HAMP has also set new standards 

and changed practices throughout the mortgage 

servicing industry in fundamental ways.

Another OFS housing program, HHF, provides 

funding to 18 states and the District of Columbia 

through each state’s Housing Finance Agency 

(HFA) to provide assistance to struggling 

homeowners through locally-tailored programs. 

HFAs have implemented many types of 

programs to help homeowners, including 

mortgage payment assistance, reinstatement, 

short sale/transition assistance, principal 

reduction, and modification assistance. As the 

housing recovery has evolved, HFAs have 

undertaken additional initiatives such as blight 

elimination and down payment assistance 

programs, which help prevent foreclosures by 

stabilizing neighborhoods and property values. 

As of September 30, 2021, 16 of 19 HFAs have 

drawn 100 percent in HHF funding. In addition, 

eight HFAs have exited the program, completing 

their end-of-term requirements and returning a 

total of $205 million to Treasury in remaining 

drawn but unspent funds.

The third Operational Goal of OFS is to 

minimize the cost of the TARP programs to the 

taxpayer. OFS pursues this goal by carefully 

managing the timely exit of these investments to 

reduce taxpayers’ exposure, returning TARP 

funds to reduce the federal debt, and continuing 

to replace government assistance with private 

capital in the financial system.

OFS’s final Operational Goal is to continue 

operating with the highest possible standards of 

transparency, accountability, and integrity.

OFS posts a variety of reports online that 

provide taxpayers with regular and 

comprehensive information about how TARP 

funds are being spent, who has received them 

and on what terms, and how much has been 

collected to date. In addition to discussing 

program performance, the MD&A addresses 

OFS’s financial performance in the Analysis of 

Fiscal Years 2021 and 2020 Financial Summary 

and Cumulative Net Income section. OFS 

provides an overview of its financial data and 

explains its fiscal year 2021 net cost from 

operations and related loans, equity 

investments, and other credit programs.

Finally, the Analysis of Systems, Controls, and 

Legal Compliance section of the MD&A provides 

a discussion of the actions OFS has taken to 

address its management control responsibilities. 

This section includes OFS’s assurance related to 

FMFIA and FFMIA.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

vi EXECUTIVE SUMMARY

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AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

EXECUTIVE SUMMARY vii
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

viii EXECUTIVE SUMMARY
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 1

Program Background, Organization Structure, and Operational Goals

Program Background

TARP was created on October 3, 2008, pursuant 

to EESA. Treasury established OFS within the 

Office of Domestic Finance to carry out the 

authorities given to the Secretary of the 

Treasury to implement TARP. EESA authorized 

the Secretary of the Treasury to establish TARP 

to “purchase, and to make and fund 

commitments to purchase, troubled assets from 

any financial institution, on terms and 

conditions as are determined by the Secretary” 

to restore the liquidity and stability of the 

financial system. The terms “troubled assets” 

and “financial institution” are defined within 

EESA which can be found at: House Resolution 

110-1424. In addition, Section 109 of EESA 

provides the authority to assist homeowners.

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act), 

signed into law in July 2010, reduced total 

TARP purchase authority from $700.0 billion to 

a cumulative $475.0 billion. OFS’s authority to 

make new program commitments under TARP 

originally expired on October 3, 2010. The 

Consolidated Appropriations Act, 2016 (the Act), 

gave the Secretary of the Treasury the ability to 

commit an additional $2.0 billion in TARP funds 

to current HHF participants. The additional 

funding committed under the Act was obligated 

by Treasury as of June 2016. OFS currently 

does not have the authority to commit new 

program funds.

OFS Organization Structure

OFS is part of, and reports to, the Office of the 

Deputy Assistant Secretary for Community and 

Economic Development in the Office of the 

Assistant Secretary for Financial Institutions. 

OFS staff is responsible for TARP program 

management, compliance, finance and 

operations. Certain staff within the Treasury 

Office of General Counsel and the Treasury 

Office of Financial Agents also support OFS, as 

well as other Treasury Departmental Offices.

OFS is not envisioned as a permanent 

organization, so to the extent possible when 

economically efficient and appropriate, OFS 

utilizes private sector expertise to support the 

execution and liquidation of TARP programs. 

These firms assist in the areas of custodial 

services, accounting and internal controls, 

administrative support, legal advisory, financial 

advisory, program compliance, and information 

technology.

TARP Wind-Down Initiatives

As of September 30, 2021, ten of the 13 TARP 

programs are closed or closed to new applicants. 

For those active TARP programs, each is in a 

wind-down phase or steady state of operations.

Launched in fiscal year 2018 and more formally 

implemented in fiscal year 2019, OFS embarked 

on a number of administrative and 

organizational operations wind-down initiatives 

to mirror the state of the remaining TARP 

programs. These initiatives included, among 

others, the following:

• Realigning the OFS organization 

structure;

• Implementing a structured planning 

approach for OFS personnel departures 

and transition of duties;

• Streamlining policies and procedures;

• Applying a risk-based approach to 

simplifying financial, operational and 

compliance processes and reporting;

• Planning for the decommissioning of 

legacy operations and ancillary finance 

management support systems;

• Expanding use of collaborative 

technology solutions for OFS staff 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

2 MANAGEMENT’S DISCUSSION AND ANALYSIS

knowledge sharing, cross-training, 

continuity, and succession planning; and

• Planning for the transfer of permanent 

records to appropriate Federal Records 

Centers at the National Archives.

Throughout these initiatives, OFS staff 

headcount continues to decrease commensurate 

with the orderly wind-down of the TARP 

programs. Despite this, OFS managers are 

responsible for identifying and proactively 

managing relevant program and administrative 

risks, and ensuring that effective internal 

controls are continuously designed and

maintained throughout the life of TARP.

Active TARP Programs

Bank Support Programs

OFS disbursed a total of $245.5 billion under the 

various TARP bank programs. As of September 

30, 2021, OFS has collected more than $275.9 

billion through repayments, dividends, interest, 

warrant sales, and other income, representing 

$30.5 billion in excess of disbursements. OFS is 

focused on recovering TARP funds in a manner 

that continues to promote the nation’s financial 

stability while maximizing returns on behalf of 

the taxpayers.

CPP

In fiscal year 2021, OFS continued to make 

progress winding down the CPP. Each dollar 

collected from CPP participants now represents 

additional collections in excess of disbursements 

on behalf of taxpayers. From inception of the 

program through September 30, 2021, OFS has 

received $199.7 billion in CPP repayments/sales, 

along with $12.1 billion in dividends and 

interest, and $15.0 billion of other proceeds in 

excess of cost, which totals $226.8 billion. As of 

September 30, 2021, $12 million in CPP gross 

investments remained outstanding in one 

institution.

During fiscal years 2021 and 2020, OFS 

collected a total of $1 million and $16 thousand, 

respectively, in repayments, warrants, 

dividends, and interest from institutions in the 

CPP program.

OFS continues to work with the remaining CPP 

institution to restructure its investment that 

will allow them to exit TARP.

Additional information on the CPP, including 

details on the program’s purpose, overview, and 

status can be found at the following link: TARP: 

Capital Purchase Program

CDCI

In fiscal year 2021, OFS continued to make 

progress winding down the CDCI. From 

inception through September 30, 2021, OFS has 

received $526 million in CDCI repayment/sales, 

along with $66 million in dividends and interest. 

As of September 30, 2021, $1 million in CDCI 

investments remained outstanding in two 

institutions.

During fiscal years 2021 and 2020, OFS 

collected a total of $95 thousand and $5 million, 

respectively, in repayments, early repayments, 

dividends, and interest from institutions in the 

CDCI program.

Additional information on CDCI, including 

details on the program’s purpose, overview, and 

status can be found at the following link:

TARP: Community Development Capital 

Initiative
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 3

Automotive Industry Financing Program

OFS fully wound down the Automotive Industry 

Financing Program (AIFP) during fiscal year 

2015, selling its remaining stake in Ally 

Financial. OFS disbursed $79.7 billion in loans 

and equity investments to the auto industry 

through the AIFP. As of September 30, 2021, 

OFS has collected $70.6 billion through sales, 

repayments, dividends, interest, recoveries, and 

other income. This includes $3 million collected 

during fiscal year 2021 related to the Motors 

Liquidation Company Debtor-in-Possession 

Lenders Trust which made its final distribution 

in late 2018 and the Avoidance Action Trust 

(AAT) which finalized a settlement in 2019.

Additional information on the AIFP, including 

details on the program’s purpose, overview, and 

status can be found at the following link: TARP: 

Automotive Industry Financing Program

Housing Programs

MHA

Consistent with OFS’s goal of continuing to help 

struggling homeowners avoid foreclosure, OFS 

developed and implemented a process to 

seamlessly transition the program from an 

active program to steady state. As of September 

30, 2021, 55 servicers are participating in OFS’s 

MHA program for non-Government Sponsored 

Enterprise (GSE) loans. As of September 30, 

2021, OFS has commitments to fund up to $22.9 

billion in MHA payments and has disbursed 

$21.8 billion since inception.

Treasury continues to monitor servicer 

compliance with MHA guidelines that pertain to 

post-modification activities and which require 

remedial action.

Additional information on MHA, including 

details on the program’s purpose, overview, and 

status can be found at the following link: TARP: 

Making Home Affordable Program

HHF

In addition to MHA, OFS operates the HHF, 

which allows participating state HFAs in the 

nation’s hardest hit states to design innovative, 

locally-tailored foreclosure prevention programs.

As of September 30, 2021, the 19 HFAs have 

collectively drawn approximately $9.5 billion (99

percent) of the $9.6 billion allocated under the 

program, with the last disbursement having 

been drawn during fiscal year 2020. Each state 

draws down funds as they are needed, but must 

have no more than five percent of their 

allocation on hand before they can draw down 

additional funds. States had until June 30, 2021

to finalize any decisions with respect to 

underwriting homeowner assistance actions or 

blight elimination projects, December 31, 2021

to expend all HHF program funding, and March 

31, 2022 to expend all HHF administrative 

funding. Starting in fiscal year 2020 and 

continuing thereafter, states that have reached 

their end-of-term are required to return any 

remaining drawn but unspent funds to 

Treasury. During fiscal year 2021, six states 

returned a total of $114 million. During fiscal 

year 2020, two states returned $91 million.

Each HFA submits a quarterly report on the 

progress of its programs. Once approved by 

OFS, state HFAs post their quarterly reports to 

their respective websites. Direct links to each 

state’s website can be found at: TARP: Hardest 

Hit Fund Program Documents

OFS also publishes a Quarterly Performance 

Summary, a companion reference to the HFAs’ 

Quarterly Performance Reports. The Summary 

contains performance data and trends, and brief 

program descriptions for each HFA. The 

Quarterly Performance Summary can be found 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

4 MANAGEMENT’S DISCUSSION AND ANALYSIS

at: TARP: Hardest Hit Fund - Quarterly 

Performance Summary

Additional information on the HHF, including 

details on the program’s purpose, overview, and 

status can be found at the following link: TARP: 

Hardest Hit Fund Program

Federal Housing Administration Refinance 

Program 

On March 26, 2010, the Federal Housing 

Administration (FHA) and OFS announced 

enhancements to the FHA Refinance Program, 

designed to make homeownership more 

affordable for borrowers whose homes are worth 

less than the remaining amounts on their 

mortgage loans (negative equity). As of 

September 30, 2021, FHA had guaranteed 7,234

refinance loans with a total face value of 

approximately $1.0 billion, of which 4,200 loans 

were subject to OFS coverage at the time of 

purchase with a face value of $620 million.

On-Going Operational Goals

Minimize Cost to Taxpayers

OFS manages TARP investments to minimize 

costs to taxpayers by ensuring the timely exit of 

these investments to reduce taxpayers’ exposure, 

return TARP funds to reduce the federal debt, 

and continue to replace government assistance 

with private capital in the financial system. 

OFS has taken a number of steps during fiscal 

years 2021 and 2020 to dispose of OFS’s 

outstanding investments in a manner that 

balances speed of exit with maximizing returns 

for taxpayers.

OFS takes a disciplined portfolio approach –

reviewing each investment and closely 

monitoring risk and performance. In addition to 

repayments by participants, OFS has disposed of 

investments to third parties through public and 

private offerings and auctions with approval 

from regulators.

Compliance

OFS monitors certain TARP-related statutory 

and contractual obligations of remaining TARP 

recipients. Historically, statutory obligations 

have included certification and disclosures 

related to executive compensation restrictions. 

For most of OFS’s preferred stock investments, 

TARP recipients need to comply with 

restrictions on payment of dividends and on 

repurchases of junior securities.

OFS also performs regular reviews of the HFAs 

participating in the HHF program to evaluate 

each HFA’s ongoing compliance with their 

contractual agreement with OFS, as well as 

their compliance with HHF program terms and 

underwriting requirements.

In addition, all mortgage servicers participating 

in MHA are subject to program guidelines that 

require the servicer to offer MHA assistance to 

all eligible borrowers and to have effective 

systems, processes, and controls to administer 

the programs. Servicers are subject to periodic, 

compliance reviews by OFS’s compliance agent, 

Making Home Affordable-Compliance (MHA-C), 

a separate, independent division of Freddie Mac

serving as financial agent to Treasury, to 

monitor whether servicers’ obligations under 

MHA requirements are being met.

In fiscal year 2011, OFS began publishing 

quarterly assessments for the largest 

participating servicers. These assessments were 

used to ensure focus on emerging areas of 

interest, draw servicer attention to higher risk 

areas, and prompt the industry to improve its 

practices. As the program has evolved and 

servicers have significantly improved their 

performance, OFS has updated the assessment 

to ensure it includes metrics that address 

current areas of interest and concern.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 5

During fiscal year 2021, OFS continued to 

perform regular assessments on servicer 

compliance with MHA guidelines pertaining to 

post-modification activities.

Continue to Operate with the Highest 

Standards of Transparency, Accountability, 

and Integrity

To protect taxpayers and help ensure that every 

dollar is directed towards promoting financial 

stability, OFS established comprehensive 

accountability and transparency measures. OFS 

is committed to operating its investment and 

housing programs in full view of the public. This 

includes providing regular and comprehensive 

information about how TARP funds are being 

spent, who has received them and on what 

terms, and how much has been collected to date.

All of this information, along with numerous 

reports of different frequencies, is posted in the 

Financial Stability section of the Treasury.gov 

website, which can be found at: TARP: Financial 

Stability Website

These reports include: 

• A Monthly TARP Update that features 

detailed financial data related to each 

TARP investment program, including 

the status of disbursements and all 

collections by category;

• A monthly report to Congress that 

details how TARP funds have been used, 

the status of recovery of such funds by 

program, and information on the 

estimated cost of TARP;

• A monthly report on dividend and 

interest payments;

• A quarterly performance report on MHA 

(the last comprehensive issue which was 

published as of September 10, 2018, 

when all MHA programs were officially 

closed; streamlined one-page 

performance summaries continue to be 

published quarterly);

• A report of each transaction (such as an

investment or repayment) within two 

business days of each transaction;

• A quarterly report on the Hardest Hit 

Fund; and

• A quarterly report to Congress on 

administrative expense obligations.

In addition, OFS regularly publishes data files 

related to MHA and transaction reports that 

show activity related to MHA and HHF. The 

release of the data file fulfills a requirement 

within the Dodd-Frank Act to make available 

loan-level data about the program. OFS updates 

the file monthly. Researchers interested in 

using the MHA Data File can access the file and 

user guide at: TARP: MHA Data File

Audited Financial Statements

OFS prepares separate financial statements for 

TARP on an annual basis. This is the 13th OFS 

AFR, which includes the audited financial 

statements for the fiscal years ended September 

30, 2021 and September 30, 2020. Additional 

reports for prior periods are available at: TARP: 

Annual Agency Financial Reports

In its 13 years of operation, TARP’s financial 

statements have received unmodified audit 

opinions from its auditor, the U.S. Government 

Accountability Office (GAO). 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

6 MANAGEMENT’S DISCUSSION AND ANALYSIS

Oversight by Three Separate Agencies

OFS activities are currently reviewed by three 

oversight entities:

• The Financial Stability Oversight Board, 

established by EESA Section 104;

• Specific responsibilities for the GAO as 

set out in EESA Section 116; and

• The Special Inspector General for TARP, 

established by EESA Section 121.

OFS has productive working relationships with 

all of these bodies, and cooperates with each 

oversight agency’s effort to produce periodic 

audits and reports that focus on the many 

aspects of TARP. Individually and collectively, 

the oversight bodies’ audits and reports have 

made, and continue to make, important 

contributions to the TARP programs.

Analysis of Fiscal Years 2021 and 2020 Financial Summary and 

Cumulative Net Income

Comparative Summary of Net Costs

OFS’s fiscal year 2021 net cost of operations of 

$388 million includes the reported net income 

related to TARP investment and FHA Refinance 

programs, as well as expenses for TARP 

Investment Programs, the Treasury housing 

programs under TARP, and administrative 

expenses.

For the fiscal year ended September 30, 2021, 

OFS reported net subsidy income for three 

programs – CDCI, AIFP, and FHA Refinance. 

These programs collectively reported net subsidy 

income of $3 million. For the fiscal year ended 

September 30, 2021, OFS reported costs for one 

program – CPP totaling $12 million. Fiscal year 

2021 costs for the Treasury housing programs 

under TARP were $345 million and 

administrative costs were $34 million. For the 

fiscal year ended September 30, 2020, the net 

cost of operations was $683 million. These net 

cost amounts reported in the financial 

statements reflect only transactions through 

September 30, 2021 and September 30, 2020, 

and therefore are different than lifetime cost 

estimates made for budgetary purposes.

Over time the cost of TARP programs will 

change. As described later in the OFS audited 

financial statements, these estimates are based 

in part on currently projected economic factors. 

These economic factors will likely change, either 

increasing or decreasing the lifetime cost of 

TARP.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 7

Comparative Summary of TARP 

Equity Investments

As of the end of fiscal years 2021 and 2020, 

TARP had a combined CPP and CDCI 

investment Outstanding Balance of $13 million 

and $18 million, respectively. Comparatively, 

the combined Estimated Value of Investment for 

CPP and CDCI during these fiscal years was $4 

million and $16 million, respectively. Estimated 

Value of Investment represents the present 

value of net cash inflows that OFS estimates it 

will receive from the programs. These estimates 

include market risk assumptions. The total 

difference of $9 million and $2 million as of the 

end of fiscal years 2021 and 2020, respectively, 

is considered the “subsidy cost allowance” under 

the Federal Credit Reform Act methodology OFS 

follows for budget and accounting purposes.

Inception to Date TARP Program 

Summary

Table 1 provides a financial summary for TARP 

programs since its inception on October 3, 2008, 

through September 30, 2021. For each program, 

the table provides utilized TARP authority 

(which includes purchases made, legal 

commitments to make future purchases, and 

offsets for guarantees made), the amount 

actually disbursed, repayments to OFS from 

program participants or from sales of the 

investments, write-offs and losses, net 

outstanding balance as of September 30, 2021, 

and cash inflows on the investments in the form 

of dividends, interest or other fees.

Most TARP funds were used to make 

investments in preferred stock or to make loans. 

OFS has generally received dividends on the 

preferred stock and interest payments on the 

loans from the institutions participating in 

TARP programs. These payments represent 

additional proceeds received on OFS’s TARP 

investments. From inception through 

September 30, 2021, OFS received a total of 

$24.5 billion in dividends and interest.

See Note 6 in the financial statements for 

further discussion.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

8 MANAGEMENT’S DISCUSSION AND ANALYSIS

(Table continued on the following page.)

Table 1: TARP Summary1

From TARP Inception through September 30, 2021

(Dollars in millions)

Purchase 

Price or 

Guarantee 

Amounts

Total $ 

Disbursed

Investment 

Repayments

Write-offs 

and 

Losses6

Outstanding 

Balance7

Received 

from 

Investments

Programs Active in 2021 

Bank Support 

Programs 

Capital Purchase 

Program2

$204,895 $204,895 $(199,672) $(5,211) $12 $27,106

Community 

Development 

Capital Initiative

570 570 (526) (43) 1 67

Subtotal for 

Investment 

Programs 

$205,465 $205,465 $(200,198) $(5,254) $13 $27,172

Treasury Housing 

Programs under 

TARP

$32,557 $31,327 n/a n/a n/a $ - 

Subtotal for Active 

Programs 

$238,022 $236,792 $(200,198) $(5,254) $13 $27,172

Note: Figures may not foot due to rounding.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 9

Purchase 

Price or 

Guarantee 

Amounts

Total $ 

Disbursed

Investment 

Repayments

Write-offs 

and 

Losses6

Outstanding 

Balance7

Received 

from 

Investments

Programs Closed in Fiscal Years 2021 or Prior 

Bank Support 

Programs 

Targeted Investment 

Program

$40,000 $40,000 $(40,000) $ - $ - $4,432

Asset Guarantee 

Program

5,000 - - - - 4,126

Credit Market 

Programs 

Public Private 

Investment Program

$18,625 $18,625 $(18,625) $ - $ - $3,852

Term Asset-Backed 

Securities Loan 

Facility

100 100 (100) - - 685

SBA 7(a) Securities 

Purchase Program

367 367 (363) (4) - 13

Other Programs 

Automotive Industry 

Financing Program

$79,692 $79,692 $(63,037) $(16,656) $ - $7,589

American 

International Group 

Investment 

Program3

67,835 67,835 (54,350) (13,485) - 959

Subtotal for Closed 

Programs 

$211,620 $206,620 $(176,475) $(30,145) $ - $21,654

Total for TARP 

Programs 

$449,642 $443,412 $(376,673) $(35,399) $13 $48,826

Note: Figures may not foot due to rounding.

1 This table shows TARP activity for the period from inception through September 30, 2021, on a cash basis. Received from 

investments includes dividends and interest income reported in the Statement of Net Cost, and Proceeds from 

sale and repurchases of assets in excess of costs.

2 OFS received $31.9 billion in proceeds from sales of Citigroup common stock, of which $25.0 billion is included 

at cost in Investment Repayments, and $6.9 billion of net proceeds in excess of cost is included in Received 

from Investments.

3 The amounts for AIG reflect only the operations of TARP and do not reflect proceeds received from the sale of 

shares of AIG common stock held by Treasury outside of TARP (additional Treasury shares).

4 Individual obligation amounts are $22.9 billion for the Making Home Affordable Program, $9.6 billion for the 

Hardest Hit Fund, and $45 million committed for the FHA Refinance Program.

5 Includes $2.2 billion of Small Business Lending Fund (SBLF) refinancing outside of TARP and CDCI 

exchanges from CPP of $363 million.

6 Losses represent proceeds less than cost on sales of assets, which are reflected under “net proceeds from sales 

and repurchases of assets in excess of (less than) cost” in Note 6 of the financial statements.

7 Total disbursements less repayments, write-offs and losses do not equal the total outstanding balance because 

the disbursements for the Treasury housing programs under TARP do not require (and OFS does not expect) 

repayments.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

10 MANAGEMENT’S DISCUSSION AND ANALYSIS

Comparison of Estimated Lifetime 

TARP Costs over Time

The ultimate cost of TARP is not expected to 

change significantly as only a few investment 

programs remain open with most of the original 

disbursed investments repaid. The cost 

estimates are sensitive to slight changes in 

model assumptions, such as general economic 

conditions, specific stock price volatility of the 

entities in which OFS has an equity interest, 

estimates of expected defaults, and 

prepayments. Wherever possible, OFS uses 

market prices of tradable securities to estimate 

the fair value of TARP investments. Use of 

market prices is possible for TARP investments 

that trade in public markets or are closely 

related to tradable securities. For those TARP 

investments that do not have direct analogs in 

private markets, OFS uses internal marketbased models to estimate the market value of 

these investments. All future cash flows are 

adjusted for market risk. Further details on 

asset valuation can be found in Note 6 of the 

financial statements.

Key Factors Affecting TARP Future 

Activities and Ultimate Cost

Market conditions and the performance of 

specific financial institutions are critical 

determinants of TARP’s estimated lifetime cost. 

The changes in OFS estimates since TARP’s 

inception through September 30, 2021, provide a 

good illustration of this impact. Table 2 provides

information on how OFS’s estimated lifetime 

cost of TARP has changed over time.

The cost estimates for the non-housing programs 

have fluctuated in large part due to changes in 

the market prices of common stock for AIG, GM

and Ally. This table assumes that all expected 

investments and disbursements for Treasury 

housing programs under TARP are completed, 

and adhere to general government budgeting 

guidance. The cost amounts in Table 2 are 

based on assumptions regarding future events, 

which are inherently uncertain. This table will 

not match the financial statements since the 

table includes repayments and disbursements 

expected to be made in the future. Data within 

this table is consistent with the estimated TARP 

lifetime cost disclosures on the OFS website at:

TARP: Estimated Lifetime Costs

TARP investment programs are nearly wound 

down with only $13 million of the total $412.1

billion disbursed still outstanding, representing 

three small banks in the CPP and CDCI 

portfolios. The estimated lifetime income 

associated with investment programs is 

currently $335 million and may fluctuate 

slightly in the future.

Similarly, with the MHA program in wind-down, 

estimated lifetime costs should not significantly 

fluctuate, but will depend on macroeconomic 

factors, including real estate values, financing 

availability, re-default rates, and market 

demand for housing.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 11

20095 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Bank Support 

Programs

Capital Purchase 

Program

($14.6) ($11.2) ($13.0) ($14.9) ($16.1) ($16.1) ($16.3) ($16.3) ($16.3) ($16.3) ($16.3) ($16.3) ($16.3)

Targeted Investment 

Program

(1.9) (3.8) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0)

Asset Guarantee 

Program2

(2.2) (3.7) (3.7) (3.9) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0) (4.0)

Community 

Development Capital 

Initiative

0.4 0.3 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 

Credit Market 

Programs

Public Private 

Investment Program

1.4 (0.7) (2.4) (2.4) (2.7) (2.7) (2.7) (2.7) (2.7) (2.7) (2.7) (2.7) (2.7)

Term Asset-Backed 

Securities Loan Facility

(0.3) (0.4) (0.4) (0.5) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6)

SBA 7(a) Securities 

Purchase Program

N/A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 

Other Programs

Automotive Industry 

Financing Program

34.5 14.7 23.6 24.3 14.7 12.2 12.1 12.2 12.2 12.2 12.1 12.1 12.1 

American International 

Group Investment 

Program3

56.8 36.9 24.3 15.3 15.2 15.2 15.2 15.2 15.2 15.2 15.2 15.2 15.2 

Subtotal 74.1 32.1 24.6 14.1 2.6 0.1 (0.2) (0.2) (0.3) (0.3) (0.3) (0.3) (0.3)

Treasury Housing 

Programs under TARP4 50.0 45.6 45.6 45.6 37.7 37.4 37.4 34.7 32.6 32.5 32.8 32.4 32.3 

Total $124.1 $77.7 $70.2 $59.7 $40.3 $37.5 $37.2 $34.5 $32.3 $32.3 $32.4 $32.1 $32.0 

2

 Prior to the termination of the guarantee agreement, OFS guaranteed up to $5.0 billion of potential losses on a $301.0 billion portfolio of loans.

3

 The amounts for AIG reflect only the operations of TARP and do not reflect proceeds received from the sale of shares of AIG common stock held by 

Treasury outside of TARP (additional Treasury shares).

4

 The estimated lifetime cost for Treasury Housing Programs under TARP consist of the MHA, HHF, and FHA Refinance programs. The estimated 

lifetime cost of the FHA Refinance Program (which is accounted for under credit reform) represents the total estimated subsidy cost associated with 

total obligated amount.

5

 Estimated lifetime cost for 2009 includes funds for projected disbursements and anticipated obligations.

Table 2: Estimated Lifetime TARP Costs (Income) 1

(Dollars in billions)

Program

Estimated Lifetime Cost (Income) as of September 30

Note: Figures may not foot due to rounding.

1

 Estimated program costs (+) or savings (in parentheses) over the life of the program, including interest on reestimates and excluding administrative 

costs.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

12 MANAGEMENT’S DISCUSSION AND ANALYSIS

Analysis of Systems, Controls, and Legal Compliance

 

MANAGEMENT ASSURANCES 

The Office of Financial Stability’s (OFS) management is responsible for establishing and 

maintaining effective internal control and financial management systems that meet the objectives 

of the Federal Managers’ Financial Integrity Act (FMFIA), 31 U.S.C. 3512(c),(d). OFS has evaluated

its management controls, internal controls over financial reporting, and compliance with the federal

financial systems standards. As part of the evaluation process, we considered the results of

extensive documentation, assessment and testing of controls across OFS, as well as the results of

independent audits. We conducted our reviews of internal controls in accordance and based on

criteria with FMFIA and Office of Management and Budget (OMB) Circular A-123.

As a result of our reviews, management concludes that the management control objectives described

below, taken as a whole, were achieved as of September 30, 2021. Specifically, this assurance is

provided relative to Section 2 (internal controls) and 4 (systems controls) of FMFIA. OFS further

assures that the financial management systems relied upon by OFS are in substantial compliance

with the requirements imposed by the Federal Financial Management Improvement Act (FFMIA).

OFS’s internal controls are designed to meet the management objectives established by Treasury 

and listed below:

(a) Alignment of strategic goals with the agency’s mission;

(b) Effective and efficient operations;

(c) Reliable reporting;

(d) Compliance with applicable laws and regulations; and

(e) Financial management systems substantially comply with Federal financial management 

systems requirements.

In addition, OFS management conducted its assessment of the effectiveness of internal control over 

financial reporting which includes the safeguarding of assets and compliance with applicable laws and 

regulations, in accordance and based on criteria with OMB Circular A-123, “Management’s 

Responsibility for Enterprise Risk Management and Internal Control.” Based on the results of this 

evaluation, OFS provides unmodified assurance that internal control over financial reporting is 

appropriately designed and operating effectively as of September 30, 2021, with no related material 

weaknesses noted.

Sincerely,

Noel Poyo

Deputy Assistant Secretary for Community and Economic Development
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 13

Federal Managers’ Financial 

Integrity Act (FMFIA)

The management control objectives under 

FMFIA are to reasonably ensure that:

• Obligations and costs are in 

compliance with applicable law;

• Funds, property, and other assets are 

safeguarded against waste, loss, 

unauthorized use, or 

misappropriation; and

• Revenues and expenditures applicable 

to agency operations are properly 

recorded and accounted for to permit 

the preparation of accounts, reliable 

financial and statistical reports, and 

to maintain accountability over the 

assets.

FMFIA requires agencies to evaluate and 

report on the effectiveness of controls over 

operations and financial reporting, compliance 

with applicable laws and regulations (FMFIA 

Section 2), and conformance with financial 

management systems requirements (FMFIA 

Section 4) and Federal Financial Management 

Improvement Act (FFMIA) that protect the 

integrity of federal programs. Deficiencies 

that seriously affect an agency’s ability to 

meet these objectives are deemed “material 

weaknesses.”

OFS continues to have a high performing 

internal control program in compliance with 

FMFIA. FMFIA and OMB Circular A-123, 

Management’s Responsibility for Enterprise 

Risk Management and Internal Control, 

require agencies to evaluate and report on 

enterprise risk management (ERM) and 

internal controls in place to help ensure 

effectiveness and efficiency of operations, 

compliance with applicable laws and 

regulations, and reliability of reporting.

OFS has completed these rigorous internal 

control assessments since fiscal year 2009.

OFS has a Senior Assessment Team (SAT) to 

guide the organization’s efforts to meet the 

statutory and regulatory requirements 

surrounding ERM and a sound system of 

internal control. OFS’s ERM and internal 

control framework is based on the principles 

of the Committee of Sponsoring Organizations 

of the Treadway Commission (COSO). The 

SAT leverages this framework in 

communicating risks and control objectives 

across OFS and its third-party service 

providers. Furthermore, OFS managers are 

responsible for identifying relevant risks, and 

ensuring that effective internal controls are 

implemented in their areas of responsibility. 

OFS senior management provides subcertification statements annually concerning 

whether there is reasonable assurance that 

the objectives of ERM and internal control are 

met. Senior management also reports on and 

takes steps to correct control weaknesses and 

tracks those weaknesses through resolution.

OFS management believes that maintaining 

integrity and accountability in all programs 

and operations is critical to its mission and 

demonstrates responsible stewardship over 

assets and resources. It also promotes 

responsible leadership and maximizes desired 

program outcomes. OFS has received 

unmodified opinions from the GAO on its 

financial statements and internal control over 

financial reporting for TARP since fiscal year 

2009, its first year of operation. OFS 

continues to execute its ERM and internal 

controls assessment process to ensure that 

management can identify risks and 

deficiencies and take timely corrective actions. 

The OFS fiscal year 2021 self-assessment of 

its ERM activities and system of internal 

controls did not identify any significant 

deficiencies or material weaknesses.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

14 MANAGEMENT’S DISCUSSION AND ANALYSIS

Federal Financial Management 

Improvement Act and Financial 

Management Systems

Federal Financial Management 

Improvement Act (FFMIA)

FFMIA mandates that agencies “...implement 

and maintain financial management systems 

that comply substantially with federal 

financial management systems requirements, 

applicable federal accounting standards, and 

the United States Government Standard 

General Ledger (USSGL) at the transaction 

level.” FFMIA also requires the development 

of remediation plans by any entity unable to 

report substantial compliance with these 

requirements.

During fiscal year 2021, OFS used a riskbased approach to assess its financial 

management systems’ compliance with 

FFMIA, as required by OMB and in 

accordance with Treasury-wide guidance. 

OFS conducted its self-assessment to 

determine its risk levels and determined that 

all OFS financial management systems are in 

compliance with FFMIA.

Financial Management Systems 

Framework

OFS’s financial management systems 

framework consists of two fundamental 

components: 1) core financial and mixed 

systems maintained by OFS and Treasury 

bureaus that cross-service OFS; and 2) 

systems that are financially relevant,

operated, and supported by financial agents. 

Combined, this framework satisfies OFS’s 

diverse financial, operational, and reporting 

needs as well as OFS’s internal and external 

reporting requirements.

In addition, OFS continued to utilize financial 

systems maintained by Treasury 

Departmental Offices and various Treasury 

bureaus. These systems are in compliance 

with federal financial management systems 

requirements and undergo regular 

independent audits.

In fiscal year 2021, OFS continued to devote 

substantial attention to simplifying its 

technology footprint in concert with the 

reduced activity and size of OFS operations. 

The simplification effort helps ensure the 

reliability, maintainability, and controllability 

of OFS technology as TARP programs winddown.

Certain financially relevant systems are 

operated and supported by financial agents, 

which provide services to OFS. The financial 

agency agreements, maintained by the 

Treasury Office of the Fiscal Assistant 

Secretary in support of OFS, require financial 

agents to design and implement suitably 

robust security plans and internal control 

programs. These plans and programs are 

reviewed and approved by OFS on an on-going 

basis.

Legal Compliance

OFS is subject to numerous legislative and 

regulatory requirements that promote and 

support an effective ERM and internal control 

environment. At least on an annual basis, 

OFS conducts a formal process to identify and 

document applicable laws and regulations. 

This process includes the review and 

consideration of Treasury guidance, statutory 

and OMB requirements, as well as 

consultation with OFS program management 

and the Treasury Office of General Counsel. 

OFS program managers are responsible for 

identifying laws and regulations which impact 

their areas, developing policies and 

procedures which ensure compliance with 

those laws and regulations, and disseminating 

information to employees regarding 

compliance responsibilities.

In order to test compliance with laws and 

regulations, OFS maps the requirements of 
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS 15

each applicable law or regulation to controls 

that support the requirements. The majority 

of the laws and regulations applicable to OFS 

are tested in this manner. In instances where 

OFS cannot leverage specific controls, OFS 

either performs alternative evaluation 

procedures or, through adherence to the 

guidance provided by Treasury, checks that 

controls are in place to meet guidance 

concerns and specifications where they apply.

The results of OFS’s evaluation of compliance 

with applicable laws and regulations are 

reflected in OFS’s assurance statement.

Other Management Information, Initiatives, and Issues

Areas for Improvement

Over the next year, OFS management will focus 

on maintaining its internal control environment 

in several key areas as follows:

• As programs continue to wind-down, 

OFS will remain vigilant to maintain 

effective processes and controls. OFS 

management will take steps to sustain 

adequate segregation of duties and the 

right level of institutional knowledge 

among remaining staff as the size of the 

organization decreases.

• Third-party service providers will 

continue to support critical services as 

programs continue to wind-down. OFS 

will oversee and monitor closely these 

third parties to safeguard OFS resources 

and help ensure the operational 

efficiency of programs and processes. 

Where necessary and appropriate to 

ensure fiscal responsibility, OFS will 

look to reduce the number of third-party 

service providers commensurate with the 

wind-down in OFS operations.

• As OFS programs conclude and staff 

continues to decrease, OFS plans to 

streamline the number and depth of 

policies and procedures to make them 

more efficient. OFS will manage this 

process through the SAT to ensure that 

any resulting risk is minimal and 

controlled.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

16 MANAGEMENT’S DISCUSSION AND ANALYSIS

Limitations of the Financial Statements

The principal financial statements have been prepared to report the financial position and results of 

operations of OFS’s TARP programs, consistent with the requirements of 31 U.S.C. 3515(b). While 

the statements have been prepared from the books and records of OFS and the Department of the 

Treasury in accordance with Section 116 of EESA and Generally Accepted Accounting Principles 

(GAAP) for Federal entities and the formats prescribed by OMB, the statements are in addition to 

the financial reports used to monitor and control budgetary resources which are prepared from the 

same books and records.

The statements should be read with the realization that they are for a component of the U.S. 

Government.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

AUDITOR’S REPORT 17
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

18 AUDITOR’S REPORT
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

AUDITOR’S REPORT 19

GOVERNMENT ACCOUNTABILITY OFFICE AUDITOR’S REPORT

Independent Auditor’s Report

To the Deputy Assistant Secretary for Community and Economic Development 

In our audits of the fiscal years 2021 and 2020 financial statements of the Troubled Asset Relief 

Program (TARP), which is implemented by the Office of Financial Stability (OFS),1 we found

• the OFS financial statements for TARP as of and for the fiscal years ended September 30, 

2021, and 2020, are presented fairly, in all material respects, in accordance with U.S. 

generally accepted accounting principles;

• OFS maintained, in all material respects, effective internal control over financial reporting for 

TARP as of September 30, 2021; and

• no reportable noncompliance for fiscal year 2021 with provisions of applicable laws, 

regulations, contracts, and grant agreements we tested.

The following sections discuss in more detail (1) our report on the financial statements and on 

internal control over financial reporting, which includes the required supplementary information 

(RSI)2 and other information included with the financial statements;3(2) our report on 

compliance with laws, regulations, contracts, and grant agreements; and (3) agency comments. 

GAO has the responsibility to audit OFS’s annual financial statements for TARP under the 

Emergency Economic Stabilization Act of 2008 (EESA), as amended.4 

Report on the Financial Statements and on Internal Control over Financial Reporting

In accordance with EESA, we have audited the OFS financial statements for TARP. The OFS 

financial statements for TARP comprise the balance sheets as of September 30, 2021, and 

1Section 101 of the Emergency Economic Stabilization Act of 2008, Pub. L. No. 110-343, div. A, 122 Stat. 3765, 3767 

(Oct. 3, 2008), classified at 12 U.S.C. § 5211, established OFS within the Department of the Treasury to implement 

TARP.

2The RSI consists of Management’s Discussion and Analysis and the Combined Statement of Budgetary Resources, 

which are included with the financial statements.

3Other information consists of information included with the financial statements, other than the RSI and the auditor’s 

report.

4EESA is classified, in part, as amended, at sections 5201 through 5261 of Title 12 of the United States Code. 

Section 116(b) of EESA, 12 U.S.C. § 5226(b), requires that Treasury annually prepare and submit to Congress and 

the public audited fiscal year financial statements for TARP that are prepared in accordance with generally accepted 

accounting principles. Section 116(b) further requires that GAO audit TARP’s financial statements annually in 

accordance with generally accepted auditing standards.

441 G St. N.W.

Washington, DC 20548
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

20 AUDITOR’S REPORT

2020; the related statements of net cost, changes in net position, and budgetary resources for 

the fiscal years then ended; and the related notes to the financial statements. We also have 

audited OFS’s internal control over financial reporting for TARP as of September 30, 2021, 

based on criteria established under 31 U.S.C. § 3512(c), (d), commonly known as the Federal 

Managers’ Financial Integrity Act (FMFIA).

We conducted our audits in accordance with U.S. generally accepted government auditing 

standards. We believe that the audit evidence we obtained is sufficient and appropriate to 

provide a basis for our audit opinions.

Management’s Responsibility

OFS management is responsible for (1) the preparation and fair presentation of these financial 

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, 

measuring, and presenting the RSI in accordance with U.S. generally accepted accounting 

principles; (3) preparing and presenting other information included in documents containing the 

audited financial statements and auditor’s report, and ensuring the consistency of that 

information with the audited financial statements and the RSI; (4) maintaining effective internal 

control over financial reporting, including the design, implementation, and maintenance of 

internal control relevant to the preparation and fair presentation of financial statements that are 

free from material misstatement, whether due to fraud or error; (5) evaluating the effectiveness 

of internal control over financial reporting based on the criteria established under FMFIA; and 

(6) its assessment about the effectiveness of internal control over financial reporting as of 

September 30, 2021, included in the accompanying Management’s Report on Internal Control 

over Financial Reporting in appendix I.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements and an opinion on 

OFS’s internal control over financial reporting for TARP based on our audits. U.S. generally

accepted government auditing standards require that we plan and perform the audits to obtain 

reasonable assurance about whether the financial statements are free from material 

misstatement and whether effective internal control over financial reporting was maintained in all 

material respects. We are also responsible for applying certain limited procedures to the RSI 

and other information included with the financial statements. 

An audit of financial statements involves performing procedures to obtain audit evidence about 

the amounts and disclosures in the financial statements. The procedures selected depend on 

the auditor’s judgment, including the auditor’s assessment of the risks of material misstatement 

of the financial statements, whether due to fraud or error. In making those risk assessments, the 

auditor considers internal control relevant to the entity’s preparation and fair presentation of the 

financial statements in order to design audit procedures that are appropriate in the 

circumstances. An audit of financial statements also involves evaluating the appropriateness of 

the accounting policies used and the reasonableness of significant accounting estimates made 

by management, as well as evaluating the overall presentation of the financial statements. 
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

AUDITOR’S REPORT 21

An audit of internal control over financial reporting involves performing procedures to obtain 

evidence about whether a material weakness exists.5 The procedures selected depend on the 

auditor’s judgment, including the assessment of the risk that a material weakness exists. An 

audit of internal control over financial reporting also includes obtaining an understanding of 

internal control over financial reporting and evaluating and testing the design and operating 

effectiveness of internal control over financial reporting based on the assessed risk. Our audit of 

internal control also considered OFS’s process for evaluating and reporting on internal control 

over financial reporting based on criteria established under FMFIA. Our audits also included 

performing such other procedures as we considered necessary in the circumstances.

We did not evaluate all internal controls relevant to operating objectives as broadly established 

under FMFIA, such as those controls relevant to preparing performance information and 

ensuring efficient operations. We limited our internal control testing to testing controls over 

financial reporting. Our internal control testing was for the purpose of expressing an opinion on 

whether effective internal control over financial reporting was maintained, in all material 

respects. Consequently, our audit may not identify all deficiencies in internal control over 

financial reporting that are less severe than a material weakness.

Definitions and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, the objectives of which are to provide 

reasonable assurance that (1) transactions are properly recorded, processed, and summarized 

to permit the preparation of financial statements in accordance with U.S. generally accepted 

accounting principles, and assets are safeguarded against loss from unauthorized acquisition, 

use, or disposition, and (2) transactions are executed in accordance with provisions of 

applicable laws, including those governing the use of budget authority, regulations, contracts,

and grant agreements, noncompliance with which could have a material effect on the financial 

statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or 

detect and correct, misstatements due to fraud or error. We also caution that projecting any 

evaluation of effectiveness to future periods is subject to the risk that controls may become 

inadequate because of changes in conditions, or that the degree of compliance with the policies 

or procedures may deteriorate.

Opinion on Financial Statements

In our opinion, OFS’s financial statements for TARP present fairly, in all material respects, 

TARP’s financial position as of September 30, 2021, and 2020, and its net cost of operations, 

changes in net position, and budgetary resources for the fiscal years then ended in accordance 

with U.S. generally accepted accounting principles.

5A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such

that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be 

prevented, or detected and corrected, on a timely basis. A deficiency in internal control exists when the design or 

operation of a control does not allow management or employees, in the normal course of performing their assigned 

functions, to prevent, or detect and correct, misstatements on a timely basis.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

22 AUDITOR’S REPORT

Opinion on Internal Control over Financial Reporting

In our opinion, OFS maintained, in all material respects, effective internal control over financial 

reporting for TARP as of September 30, 2021, based on criteria established under FMFIA. 

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles issued by the Federal Accounting Standards 

Advisory Board (FASAB) require that the RSI be presented to supplement the financial 

statements. Although the RSI is not a part of the financial statements, FASAB considers this 

information to be an essential part of financial reporting for placing the financial statements in 

appropriate operational, economic, or historical context. We have applied certain limited 

procedures to the RSI in accordance with U.S. generally accepted government auditing 

standards, which consisted of inquiries of management about the methods of preparing the RSI 

and comparing the information for consistency with management’s responses to the auditor’s 

inquiries, the financial statements, and other knowledge we obtained during the audit of the 

financial statements, in order to report omissions or material departures from FASAB guidelines, 

if any, identified by these limited procedures. We did not audit and we do not express an opinion 

or provide any assurance on the RSI because the limited procedures we applied do not provide 

sufficient evidence to express an opinion or provide any assurance.

Other Information

OFS’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional 

analysis and is not a required part of the financial statements or the RSI. We read the other 

information included with the financial statements in order to identify material inconsistencies, if 

any, with the audited financial statements. Our audit was conducted for the purpose of forming 

an opinion on OFS’s financial statements for TARP. We did not audit and do not express an 

opinion or provide any assurance on the other information.

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

In connection with our audits of OFS’s financial statements for TARP, we tested compliance 

with selected provisions of applicable laws, regulations, contracts, and grant agreements 

consistent with our auditor’s responsibility discussed below. We caution that noncompliance 

may occur and not be detected by these tests. We performed our tests of compliance in 

accordance with U.S. generally accepted government auditing standards.

Management’s Responsibility

OFS management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to OFS.

Auditor’s Responsibility

Our responsibility is to test compliance with selected provisions of laws, regulations, contracts, 

and grant agreements applicable to OFS that have a direct effect on the determination of 

material amounts and disclosures in TARP’s financial statements, and to perform certain other 
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

AUDITOR’S REPORT 23

limited procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, 

and grant agreements applicable to OFS.

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and 

grant agreements disclosed no instances of noncompliance for fiscal year 2021 that would be 

reportable under U.S. generally accepted government auditing standards. However, the 

objective of our tests was not to provide an opinion on compliance with laws, regulations, 

contracts, and grant agreements applicable to OFS. Accordingly, we do not express such an 

opinion.

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant 

Agreements

The purpose of this report is solely to describe the scope of our testing of compliance with 

selected provisions of applicable laws, regulations, contracts, and grant agreements, and the 

results of that testing, and not to provide an opinion on compliance. This report is an integral 

part of an audit performed in accordance with U.S. generally accepted government auditing 

standards in considering compliance. Accordingly, this report on compliance with laws, 

regulations, contracts, and grant agreements is not suitable for any other purpose.

Agency Comments

In commenting on a draft of this report, OFS stated that it is proud to receive an unmodified 

opinion on its financial statements and its internal control over financial reporting. OFS also 

stated that it is committed to maintaining the high standards and transparency reflected in these 

audit results. The complete text of OFS’s response is reproduced in appendix II. 

Cheryl E. Clark

Director

Financial Management and Assurance

November 4, 2021
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

24 AUDITOR’S REPORT

Appendix I: Management’s Report on Internal Control over Financial 

Reporting

DEPARTMENT OF THE TREASURY

 WASHINGTON, D.C. 20220

Management’s Report on Internal Control over Financial Reporting 

 

 

The Office of Financial Stability’s (OFS) internal control over financial reporting (for TARP) is a 

process effected by those charged with governance, management, and other personnel, the objectives 

of which are to provide reasonable assurance that (1) transactions are properly recorded, processed, 

and summarized to permit the preparation of financial statements in accordance with U.S. generally 

accepted accounting principles, and assets are safeguarded against loss from unauthorized 

acquisition, use, or disposition; and (2) transactions are executed in accordance with provisions of 

applicable laws, including those governing the use of budget authority; regulations; contracts; and 

grant agreements, noncompliance with which could have a material effect on the financial 

statements.

OFS management is responsible for maintaining effective internal control over financial reporting, 

including the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error. OFS management evaluated the effectiveness of OFS’s internal 

control over financial reporting as of September 30, 2021, based on the criteria established under 31 

U.S.C. 3512(c), (d) (commonly known as the Federal Managers’ Financial Integrity Act).

Based on that evaluation, we conclude that, as of September 30, 2021, OFS’s internal control over 

financial reporting was effective.

Noel Poyo

Deputy Assistant Secretary for Community and Economic Development

November 4, 2021
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

AUDITOR’S REPORT 25

Appendix II: OFS Response to Auditor’s Report

DEPARTMENT OF THE TREASURY

 WASHINGTON, D.C. 20220

November 4, 2021

Ms. Cheryl E. Clark

Director, Financial Management and Assurance

U.S. Government Accountability Office

441 G Street, N.W.

Washington, DC 20548

Dear Ms. Clark:

We have reviewed the Independent Auditor’s Report concerning your audit of the Office of Financial 

Stability (OFS) fiscal year 2021 financial statements. OFS is proud to receive a 13th consecutive 

unmodified opinion on its financial statements and internal controls over financial reporting.

We appreciate the professionalism and commitment demonstrated by your staff throughout the audit 

process. The process was valuable for us and resulted in concrete improvements in our operations 

and financial management efforts.

OFS is committed to maintaining the high standards and transparency reflected in these audit 

results as we carry out our responsibilities for managing the Troubled Asset Relief Program.

Sincerely,

Noel Poyo

Deputy Assistant Secretary for Community and Economic Development
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

26 FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

Office of Financial Stability (OFS) prepares 

financial statements for the Troubled Asset 

Relief Program (TARP) as a critical aspect of 

ensuring the accountability and stewardship for 

the public resources entrusted to it and as 

required by Section 116 of the Emergency 

Economic Stabilization Act of 2008 (EESA). 

Preparation of these statements is also an 

important part of OFS’s financial management 

goal of providing accurate and reliable 

information that may be used to assess 

performance and allocate resources. OFS 

management is responsible for the accuracy and 

propriety of the information contained in the 

financial statements and the quality of internal 

controls. The statements are, in addition to 

other financial reports, used to monitor and 

control budgetary resources. OFS prepares 

these financial statements from its books and 

records in conformity with the accounting 

principles generally accepted in the United 

States for federal entities and the formats 

prescribed by the Office of Management and 

Budget (OMB).

While these financial statements reflect 

activities of OFS in executing its programs, 

including providing resources to various entities 

to help stabilize the financial markets, they do 

not include, as more fully discussed in Note 1, 

the assets, liabilities, or results of operations of 

commercial entities in which OFS has a 

significant equity interest.

The Balance Sheet summarizes OFS assets, 

liabilities and net position as of September 30, 

2021 and 2020. Intragovernmental assets and 

liabilities resulting from transactions between 

federal agencies are presented separately from 

assets and liabilities resulting from 

transactions with the public.

The Statement of Net Cost presents the net cost 

of operations for the fiscal years ended 

September 30, 2021 and 2020.

The Statement of Changes in Net Position 

presents the change in OFS’s net position for 

two components, Unexpended Appropriations 

and Cumulative Results of Operations, for the 

fiscal years ended September 30, 2021 and 

2020. The ending balances of both components 

of net position are also reported on the Balance 

Sheet.

The Statement of Budgetary Resources provides 

information about funding and availability of 

budgetary resources and the status of those 

resources for the fiscal years ended September 

30, 2021 and 2020.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

FINANCIAL STATEMENTS 27

BALANCE SHEET 

Dollars in Millions

ASSETS

Intragovernmental Assets:

 Fund Balance with Treasury (Note 3) $ 14,580 $ 14,963

Total Intragovernmental Assets 14,580 14,963

Cash on Deposit for Housing Program (Note 4) 10 10

Equity Investments, Net (Note 6) 4 16

Total Assets $ 14,594 $ 14,989

LIABILITIES

Intragovernmental Liabilities:

 Accounts Payable and Other Liabilities $ - $ 1

 Principal Payable to the Bureau of the Fiscal Service (Note 8) 17 22

 Due to the General Fund (Note 7) 4 4

Total Intragovernmental Liabilities 21 27

Accounts Payable and Other Liabilities 10 6

Liabilities for Treasury Housing Programs Under TARP:

 Making Home Affordable Program (Note 5) 29 49

Total Liabilities $ 60 $ 82

Commitments and Contingencies (Note 9)

NET POSITION 

 Unexpended Appropriations $ 14,537 $ 14,902

 Cumulative Results of Operations (3) 5

Total Net Position $ 14,534 $ 14,907

Total Liabilities and Net Position $ 14,594 $ 14,989

The accompanying notes are an integral part of these financial statements.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

28 FINANCIAL STATEMENTS

Dollars in Millions

Gross Cost of Operations:

 Program Subsidy Cost (Notes 6 and 10) $ 9 $ 2

 Interest Expense on Borrowings from the Bureau of the Fiscal Service (Note 10) 1 -

 Treasury Housing Programs Under TARP, Net (Note 5) 345 644

 Administrative Cost 34 37

Total Gross Cost of Operations 389 683

Total Earned Revenue (1) -

Total Net Cost of Operations $ 388 $ 683

The accompanying notes are an integral part of these financial statements.

STATEMENT OF NET COST

STRATEGIC GOAL: TRANSFORM GOVERNMENT-WIDE FINANCIAL STEWARDSHIP
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

FINANCIAL STATEMENTS 29

Dollars in Millions

Beginning Balances $ 14,902 $ 5 $ 15,569 $ 3

Budgetary Financing Sources

 Appropriations Received 46 - 58 -

 Appropriations Used (384) 384 (688) 688

 Other Adjustments - Canceled Authority (27) - (37) -

Other Financing Sources - (4) - (3)

Total Financing Sources (365) 380 (667) 685

Net Cost of Operations - (388) - (683)

Net Change (365) (8) (667) 2

Ending Balances $ 14,537 $ (3) $ 14,902 $ 5

The accompanying notes are an integral part of these financial statements.

STATEMENT OF CHANGES IN NET POSITION
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

30 FINANCIAL STATEMENTS

Dollars in Millions

 Unobligated Balances Brought Forward, October 1 166 5 94 80

 Recoveries of Prior-Year Unpaid Obligations 16 - 576 -

 Actual Repayments of Debt, Prior-Year Balances - (3) - (2)

 Cancelled Authority (27) - (37) -

 Other Changes in Unobligated Balances - - (468) -

Unobligated Balance from Prior-Year Budget Authority, Net 155 2 165 78

Appropriations 46 - 58 -

Borrowing Authority - 3 - -

Spending Authority from Offsetting Collections - 4 - 2

TOTAL BUDGETARY RESOURCES (Note 11) $ 201 $ 9 $ 223 $ 80

STATUS OF BUDGETARY RESOURCES

New Obligations and Upward Adjustments (Total) $ 41 $ 5 $ 57 $ 75

Unobligated Balance, End of Year:

 Apportioned, Unexpired Accounts 4 - 8 1

 Unapportioned, Unexpired Accounts 91 4 91 4

 Unexpired Unobligated Balance, End of Year 95 4 99 5

 Expired Unobligated Balance, End of Year 65 - 67 -

Unobligated Balance, End of Year (Total) 160 4 166 5

TOTAL STATUS OF BUDGETARY RESOURCES $ 201 $ 9 $ 223 $ 80

OUTLAYS, NET AND DISBURSEMENTS, NET

Outlays, Net (Total) 401 720

Distributed Offsetting Receipts (4) (74)

Agency Outlays, Net $ 397 $ 646

Disbursements, Net (Total) $ (5) $ 63

The accompanying notes are an integral part of these financial statements.

STATEMENT OF BUDGETARY RESOURCES
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 31

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. REPORTING ENTITY

The Troubled Asset Relief Program (TARP) was 

authorized by the Emergency Economic 

Stabilization Act of 2008, as amended (EESA). 

EESA gave the Secretary of the Treasury (the 

Secretary) broad and flexible authority to 

establish the TARP to purchase and insure 

mortgages and other troubled assets, which

permitted the Secretary to inject capital into 

banks and other commercial companies by taking 

equity positions in those entities to help stabilize 

the financial markets.

The EESA established certain criteria under which 

the TARP would operate, including provisions that 

impact the budgeting, accounting, and reporting of 

troubled assets acquired. Section 115 of the EESA 

limited the authority of the Secretary to purchase 

troubled assets up to $700.0 billion outstanding at 

any one time, calculated as the aggregate purchase 

prices of all troubled assets held. In July 2010, the 

Dodd-Frank Wall Street Reform and Consumer 

Protection Act amended Section 115 of the EESA, 

limiting the TARP’s authority to a total of $475.0 

billion cumulative obligations (i.e., purchases and 

guarantees) and prohibiting any new obligations for 

programs or initiatives that had not been publicly 

announced prior to June 25, 2010.

The Consolidated Appropriations Act, 2016 (the 

Act), gave the Secretary of the Treasury the ability

to commit an additional $2.0 billion in TARP funds 

to current Hardest Hit Fund (HHF) participants. 

The additional $2.0 billion was obligated by 

Treasury as of June 2016. OFS currently does not 

have the authority to commit new program funds. 

OFS had utilized (including purchases made, legal 

commitments to make purchases and offsets for 

guarantees made) $449.6 billion as of September 

30, 2021 and as of September 30, 2020.

During fiscal years 2021 and 2020, OFS

administered the Capital Purchase Program (CPP),

the Community Development Capital Initiative

(CDCI), and the Treasury Housing Programs under 

TARP. See Notes 5 and 6 for details regarding 

these programs.

Through the purchase of troubled assets, OFS 

entered into several different types of direct loan, 

equity investment, and other credit programs 

(consisting of the Federal Housing Administration 

(FHA) Refinance Program) (collectively, OFS 

programs) with private entities. OFS programs 

were entered into with the intent of helping to 

stabilize the financial markets and mitigating, as 

best as possible, any adverse impact on the 

economy; they were not entered into to engage in 

the business activities of the respective private 

entities nor to be permanent in nature.

These private entities are not included in the 

federal budget, and OFS does not hold a majority 

ownership interest in them (except for two 

investments) nor controls them with risk of loss or 

expectation of benefit.

OFS’s intent is to liquidate its ownership in these 

entities as soon as practicable. Following the 

criteria in Statement of Federal Financial 

Accounting Standards (SFFAS) 47, Reporting 

Entity, OFS has not consolidated into its financial 

statements the assets, liabilities, or results of 

operations of these entities in which OFS has a 

significant equity interest. Instead, these 

financial statements reflect the activities of OFS 

in executing its programs, including providing 

resources to various entities to help stabilize the 

financial markets. The value of such investments 

was recorded in OFS financial statements. 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

32 NOTES TO THE FINANCIAL STATEMENTS

Using SFFAS 47 criteria, there were no 

investments for fiscal year 2021 in which OFS

held a majority ownership interest. For fiscal 

year 2020, the one investment in which OFS held 

a majority ownership interest, was considered to 

be a disclosure entity and is further discussed in 

Note 6.

The EESA established OFS within the Office of 

Domestic Finance of the U.S. Department of the 

Treasury (Treasury) to administer the TARP and 

required its separate audited financial 

statements. OFS prepares stand-alone financial 

statements for TARP to satisfy EESA Section 

116(b) (1) and as an office of the Treasury, its 

financial statements are consolidated into 

Treasury’s Agency Financial Report.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Presentation

The accompanying financial statements include 

the results of operations of the TARP and have 

been prepared from the accounting records of OFS 

in conformity with accounting principles generally 

accepted in the United States for federal entities 

(Federal GAAP), and the Office of Management 

and Budget (OMB) Circular A-136, Financial 

Reporting Requirements, as revised. Federal 

GAAP includes the standards issued by the 

Federal Accounting Standards Advisory Board 

(FASAB). The FASAB is recognized by the 

American Institute of Certified Public 

Accountants (AICPA) as the official accounting 

standards-setting body for the U.S. Government. 

Accounting standards require all reporting

entities to disclose that accounting standards

allow certain presentations and disclosures to be

modified, if needed, to prevent the disclosure of

classified information.

Section 123(a) of the EESA requires that the 

budgetary cost of purchases of troubled assets and 

guarantees of troubled assets, and any cash flows 

associated with authorized activities, be 

determined in accordance with the Federal Credit 

Reform Act of 1990 (FCRA). Section 123(b) (1) of 

the EESA requires that the budgetary costs of 

troubled assets and guarantees of troubled assets 

be calculated by adjusting the discount rate for 

market risks. As a result of this requirement, 

OFS considered market risk in its calculation and 

determination of the estimated net present value 

of its equity investment and FHA Refinance

programs for budgetary purposes. Similarly, 

market risk is considered in the valuations for 

financial reporting purposes (see Note 5 for 

further discussion).

Consistent with its accounting policy for equity 

investments in private entities, OFS accounts for 

its equity investments at fair value. Since fair 

value is not defined in federal accounting 

standards, as established in SFFAS No. 34, The 

Hierarchy of Generally Accepted Accounting 

Principles, Including the Application of Standards 

Issued by the Financial Accounting Standards 

Board, OFS conforms to fair value definitions 

contained in the private sector Financial 

Accounting Standards Codification (ASC) 820, 

Fair Value Measurement. OFS defines fair value 

of its equity investments as the estimated amount 

of proceeds that would be received if the equity 

investments were sold to a market participant in 

an orderly transaction. Note 6 presents Equity 

Investments tabulated by the Level of 

Observation of the inputs used in the valuation 

process. Level 1 assets are measured using 

quoted market prices for identical assets. Level 2 

assets are measured using observable market 

inputs other than direct market quotes. Level 3 

assets are measured using unobservable inputs.

OFS uses the present value accounting concepts 

embedded in SFFAS No. 2, Accounting for Direct 

Loans and Loan Guarantees, as amended (SFFAS 

No. 2), to derive fair value measurements for its 

equity investments in Levels 2 and 3. OFS 
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 33

concluded that some of the equity investments, 

such as preferred stock, were similar to direct 

loans since there was a stated rate and a 

redemption feature which, if elected, required 

repayment of the amount invested. Furthermore, 

consideration of market risk provided a basis to 

arrive at a fair value measurement. Therefore, 

OFS concluded that SFFAS No. 2 (as more fully 

discussed below) should be followed for reporting 

and disclosure requirements of its equity 

investments.

OFS applies the provisions of FCRA for budgetary 

accounting and the associated FASAB accounting 

standard SFFAS No. 2 for financial reporting for 

loan guarantee programs. Liabilities under the 

FHA Refinance Program are recognized at the net 

present value of their estimated future cash flows 

when the FHA guarantees loans. For equity 

investments, the subsidy allowance account 

represents the difference between the face value 

of the outstanding equity investment balance and 

the net present value of the expected future cash 

flows or fair value, and is reported as an 

adjustment to the face value of the equity 

investment.

OFS recognizes dividend income associated with 

equity investments when declared by the entity in 

which OFS has invested and when received in

relation to any repurchases, exchanges, and 

restructurings. Annually, OFS reflects changes, 

referred to as reestimates, in its determination of 

the value of equity investment and FHA

Refinance programs in the subsidy cost on the 

Statement of Net Cost.

In certain programs, OFS has received common 

stock warrants, additional preferred stock 

(referred to as warrant preferred stock) or 

additional notes as additional consideration. OFS 

accounts for any proceeds received from the sale of 

these investments as fees under SFFAS No. 2; as 

such, they are credited to the subsidy allowance 

rather than to income.

Use of Estimates

OFS has made certain estimates and assumptions 

relating to the reporting of assets, liabilities, 

revenues, and cost to prepare these financial 

statements. Actual results could significantly 

differ from these estimates. Major financial 

statement lines that include estimates are Equity 

Investments, Net, and the Liabilities for Treasury 

Housing Programs under TARP on the Balance 

Sheet, and related Program Subsidy Cost 

(Income) on the Statement of Net Cost (see Notes 

5 and 6).

The most significant differences between actual 

results and estimates may occur in the valuation 

of OFS’s programs. These valuation estimates are 

sensitive to slight changes in model assumptions, 

such as general economic conditions, specific stock 

price volatility of the entities in which OFS has an 

equity interest, estimates of expected default, and 

prepayment rates. Forecasts of future financial 

results have inherent uncertainty, and Equity 

Investments, Net, as of fiscal year-ends include 

relatively illiquid assets with values that are 

sensitive to future economic conditions and other 

assumptions. Estimates are also prepared for the 

FHA Refinance Program to determine the liability 

for losses.

Credit Reform Accounting

OFS accounts for the cost of equity investment 

and FHA Refinance programs in accordance with 

Section 123(a) of the EESA and the FCRA for 

budgetary accounting, and fair value and SFFAS 

No. 2, respectively, for financial reporting. The 

FCRA calls for the establishment of program, 

financing and general fund receipt accounts to 

segregate and report receipts and disbursements. 

These accounts are classified as either budgetary 

or non-budgetary in the Statement of Budgetary 

Resources. OFS maintains budgetary program 

accounts which receive appropriations and 

obligate funds to cover the subsidy cost of equity 

investment and FHA Refinance programs and
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

34 NOTES TO THE FINANCIAL STATEMENTS

disburse the subsidy cost to OFS’s financing 

accounts. The financing accounts are nonbudgetary accounts that are used to record all of 

the cash flows resulting from the OFS equity 

investment and FHA Refinance programs. Cash 

flows include disbursements, borrower 

repayments, repurchases, fees, recoveries, 

interest, dividends, proceeds from the sale of stock 

and warrants, borrowings from and repayments to 

Treasury, negative subsidy and the subsidy cost 

received from the program accounts, as well as 

subsidy reestimates and modifications.

Financing arrangements specifically for the TARP 

activities are provided for in EESA as follows: (1) 

borrowing for program funds under Section 118, 

reported as “appropriations” in these financial 

statements, and (2) borrowing by financing 

accounts for amounts not covered by subsidy cost, 

under the FCRA and Section 123. OFS uses 

budgetary general fund receipt accounts to record 

the receipt of amounts paid from the financing 

accounts when there is a negative subsidy or 

negative modification (a reduction in subsidy cost 

due to changes in program policy or terms that 

change estimated future cash flows) from the 

original estimate or a downward reestimate. Any 

assets in these accounts are non-entity assets, not 

available to OFS, and are offset by 

intragovernmental liabilities. Fund balance 

transferred to the U.S. Treasury through the 

general fund receipt accounts is not included in 

OFS’s reported Fund Balance with Treasury

(FBWT).

SFFAS No. 2 requires that the actual and 

expected costs of federal credit programs be fully 

recognized in financial reporting. OFS calculated 

and recorded initial estimates of the future 

performance of equity investment and FHA

Refinance programs. The data used for these 

estimates were reestimated annually, at fiscal 

year-end, to reflect adjustments for market risk, 

asset performance, and other key variables and 

economic factors. The reestimate data were then 

used to estimate and report the Program Subsidy 

Cost (Income) in the Statement of Net Cost. A 

detailed discussion of OFS’s subsidy calculation 

and reestimate assumptions, process, and results 

is provided in Note 6.

Fund Balance with Treasury

The FBWT includes funds available to pay current 

liabilities and finance authorized purchases. 

Cash receipts and disbursements are processed by 

the Treasury, and OFS’s records are reconciled 

with those of the Treasury on a regular basis.

Available unobligated balances represent amounts 

that are apportioned for obligation in the current 

fiscal year. Unavailable unobligated balances 

represent unanticipated collections in excess of 

the amounts apportioned. Obligated balances not 

yet disbursed include undelivered orders and 

unpaid expended authority. Non-Budgetary 

FBWT represents unavailable funds from 

appropriations fulfilled. See Note 3.

Equity Investments, Net

Equity Investments, Net represents the estimated 

net outstanding amount of the OFS equity 

investments. The equity investment balances 

have been determined in accordance with the

provisions of SFFAS No. 2 and are recorded at fair 

value (see Note 6). Write-offs of equity 

investment balances (presented in Note 6 table) 

are recorded when a legal event occurs, such as a 

bankruptcy or liquidation with suspension or 

termination of collection action, or extinguishment 

of a debt instrument by agreement and there is 

currently no expectation of further collection. 

Under SFFAS No. 2, write-offs do not affect the 

Statement of Net Cost because the written-off 

asset is fully reserved. Therefore, the write-off 

removes the asset balance and the associated 

subsidy allowance.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 35

General Property and Equipment

Equipment with a cost of $50,000 or more per unit 

and a useful life of two years or more is 

capitalized at full cost and depreciated using the 

straight-line method over the equipment’s useful 

life. Other equipment not meeting the 

capitalization criteria is expensed when 

purchased. Software developed for internal use is 

capitalized and amortized over the estimated 

useful life of the software if the cost per project is 

greater than $250,000. However, OFS may 

expense such software if management concludes 

that total period costs would not be materially 

distorted and the cost of capitalization is not 

economically prudent. Based upon these criteria, 

OFS reports no capitalized property, equipment or 

software on its Balance Sheet as of September 30, 

2021 and 2020.

Accounts Payable and Other Liabilities

Accounts Payable and Other Liabilities are 

amounts due to intragovernmental or public 

entities that are anticipated to be liquidated 

during the next operating cycle (within one year 

from the balance sheet date).

Due to the General Fund

Due to the General Fund represents the amount 

of accrued downward reestimates not yet funded, 

related to direct loan, equity investment, and FHA

Refinance programs as of September 30, 2021 and 

2020. See Notes 5, 6 and 7.

Principal Payable to the Bureau of the 

Fiscal Service

Principal Payable to the Bureau of the Fiscal 

Service (Fiscal Service) is the amount due for 

equity investments funded by borrowings from the 

Fiscal Service as of the end of the fiscal year. 

Additionally, OFS borrows from the Fiscal Service 

for payment of intragovernmental interest and 

payment of downward reestimates to the general 

fund, as necessary. See Note 8.

Liabilities for Treasury Housing 

Programs under TARP

There are three initiatives in the Treasury 

Housing Programs: the Making Home Affordable 

Program, the Hardest Hit Fund and the FHA

Refinance Program. OFS has determined that 

credit reform accounting is not applicable to the 

Treasury Housing Programs under TARP except 

for the FHA Refinance Program. Therefore, 

liabilities for the Making Home Affordable 

Program and Hardest Hit Fund are accounted for 

in accordance with SFFAS No. 5, Accounting for 

Liabilities of the Federal Government. In 

accordance with this standard, a liability is 

recognized for any unpaid amounts due and 

payable as of the reporting date. The liability 

estimate, as of September 30, 2021 and 2020, is 

based on information about loan modifications 

reported by participating servicers for the Making 

Home Affordable Program. See Note 5.

At the end of fiscal year 2010, OFS entered into a 

loss-sharing agreement with the FHA to support a 

program in which FHA would guarantee 

refinancing for borrowers whose homes are worth 

less than the remaining amounts owed under 

their mortgage loans, i.e., “underwater.” The 

liability for OFS’s share of losses was determined 

under credit reform accounting and shown as 

FHA Refinance Program, one of the Liabilities for 

Treasury Housing Programs under TARP, on the 

Balance Sheet. See Notes 4 and 5.

Unexpended Appropriations

Unexpended Appropriations represents OFS’s

undelivered orders and unobligated balances 

reduced by cancelled authority in budgetary 

appropriated funds as of September 30, 2021 and 

2020.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

36 NOTES TO THE FINANCIAL STATEMENTS

Cumulative Results of Operations

Cumulative Results of Operations, presented on 

the Balance Sheet and on the Statement of 

Changes in Net Position, represents the net 

results of OFS’s operations not funded by 

appropriations or some other source, such as 

borrowing authority, from inception through fiscal 

year-end. Cumulative Results of Operations in 

2021 and 2020 included $10 million, reported as 

Cash on Deposit for Housing Program on the 

Balance Sheet, see Note 4.

Other Financing Sources

The Other Financing Sources line in the 

Statement of Changes in Net Position for each 

year consists primarily of downward reestimates. 

Each program’s reestimates, upward and

downward, are recorded separately, not netted 

together.

Leave

A liability for OFS employees’ annual leave is 

accrued as it is earned and reduced as leave is 

taken. Each year the balance of accrued annual 

leave is adjusted to reflect current pay rates as 

well as forfeited “use or lose” leave. Amounts are 

unfunded to the extent current or prior year 

appropriations are not available to fund annual 

leave earned but not taken. Sick leave and other 

types of non-vested leave are expensed as taken. 

The liability is included in the Balance Sheet 

amount for Accounts Payable and Other 

Liabilities.

Employee Health and Life Insurance 

and Workers’ Compensation Benefits

OFS employees may choose to participate in the 

contributory Federal Employees Health Benefit 

and the Federal Employees Group Life Insurance 

Programs. OFS matches a portion of the 

employee contributions to each program.

Matching contributions are recognized as current 

operating expenses.

The Federal Employees’ Compensation Act 

(FECA) provides income and medical cost 

protection to covered federal civilian employees 

injured on the job, and employees who have 

incurred a work-related injury or occupational 

disease. Future workers’ compensation estimates 

are generated from an application of actuarial 

procedures developed to estimate the liability for 

FECA benefits. The actuarial liability estimates 

for FECA benefits include the expected liability 

for death, disability, medical, and miscellaneous 

costs for approved compensation cases. Any 

FECA amounts relating to OFS employees are 

expensed as incurred.

Employee Pension Benefits

OFS employees participate in either the Civil 

Service Retirement System (CSRS) or the Federal 

Employees’ Retirement System (FERS) and Social 

Security. These systems provide benefits upon 

retirement and in the event of death, disability or 

other termination of employment and may also 

provide pre-retirement benefits. They may also 

include benefits to survivors and their 

dependents, and may contain early retirement or 

other special features. OFS contributions to 

retirement plans and Social Security, as well as 

imputed costs for pension and other retirement 

benefit costs administered by the Office of 

Personnel Management, are recognized on the 

Statement of Net Cost as Administrative Cost. 

Federal employee benefits also include the Thrift 

Savings Plan (TSP). For FERS employees, a TSP 

account is automatically established and OFS 

matches employee contributions to the plan, 

subject to limitations. The matching 

contributions are recognized as Administrative 

Costs on the Statement of Net Cost.

Related Parties

There are no related parties for OFS.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 37

NOTE 3. FUND BALANCE WITH TREASURY

Fund Balance with Treasury (FBWT), by status, as of September 30, 2021 and 2020, is presented in the 

following table.

(Dollars in Millions) 2021 2020

Status of Fund Balance with Treasury

 Unobligated Balance

 Available $ 4 $ 9

 Unavailable 160 71

 Obligated Balance Not Yet Disbursed 1,233 1,723

 Non-Budgetary FBWT 1

 13,183 13,160

Total $ 14,580 $ 14,963

As of September 30,

1

Non-Budgetary FBWT represents Housing Program amounts no longer available for obligation, since the purpose for 

which the appropriation was enacted has been fulfilled. 

NOTE 4. CASH ON DEPOSIT FOR HOUSING PROGRAM

As of September 30, 2021 and 2020, OFS had $10

million, on deposit with a commercial bank to 

facilitate its payments of claims under the FHA 

Refinance Program as OFS’s agent.

See Note 5 for further details regarding the FHA 

Refinance Program. Under terms of the agreement 

with the commercial bank, unused funds will be 

returned to OFS upon the termination of the

program.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

38 NOTES TO THE FINANCIAL STATEMENTS

NOTE 5. TREASURY HOUSING PROGRAMS UNDER TARP

Fiscal years 2021 and 2020 continued the winddown of housing programs under TARP. The largest 

program, Making Home Affordable (MHA) required 

that all participating servicers complete financial 

assistance actions on or before December 1, 2017. 

These programs were designed to prevent avoidable 

foreclosure and provide stability for the housing 

market, and primarily provide assistance to

homeowners who are experiencing financial

hardships. The programs fall into three initiatives: 

1) Making Home Affordable Program (MHA); 

2) Hardest Hit Fund (HHF); and 

3) FHA Refinance Program.

Features of these initiatives follow:

Housing Program Features

MHA

 Home Affordable Modification Program (HAMP)

 First Lien Modification Program (Tier 1, Tier 2, and

 Streamline)

Provides for upfront, monthly and annual incentives to servicers, borrowers and 

investors who participate, whereby the investor and the OFS share the costs of 

modifying qualified first liens, conditional on borrower performance.

 Principal Reduction Alternative Program (PRA) Pays financial incentives to investors for principal reduction in conjunction with 

a first lien HAMP modification.

 Home Affordable Foreclosure Alternatives (HAFA) Designed to assist eligible borrowers unable to retain their homes through a 

HAMP modification, by simplifying and streamlining the short sale and deed-inlieu of foreclosure processes and providing financial incentives to servicers and 

investors as well as relocation assistance to borrowers who pursue short sales 

and deeds-in-lieu.

 Unemployment Forebearance Program (UP) Offers assistance to unemployed homeowners through temporary forebearance of 

a portion of their mortgage payments. This program does not require any 

payments from the OFS. 

 Treasury FHA-HAMP Provides mortgage modifications similar to HAMP, but for FHA-insured or 

guaranteed loans offered by the FHA.

 Second Lien Modification Program (2MP) Offers financial incentives to participating servicers who modify second liens in 

conjunction with a HAMP modification.

 Rural Development HAMP (RD-HAMP) Provides for lower monthly payments on USDA guaranteed loans.

HHF Provides locally tailored assistance to states hardest hit by the housing market 

downturn, to assist struggling homeowners and help stabilize housing markets.

FHA Refinance Program Joint initiative with HUD to encourage refinancing of existing underwater 

mortgage loans not currently insured by FHA into FHA insured mortgages.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 39

Making Home Affordable 

In early 2009, Treasury launched MHA to help 

struggling homeowners avoid foreclosure. Since 

its inception, MHA has helped homeowners avoid 

foreclosure by providing a variety of solutions to 

modify their mortgages, get temporary 

forbearance if they are unemployed, or transition 

out of homeownership via a short sale or deed-inlieu of foreclosure. The cornerstone of MHA is the 

Home Affordable Modification Program (HAMP), 

which provides eligible homeowners the 

opportunity to reduce their monthly mortgage 

payments to more affordable levels. Treasury also 

launched programs under MHA to help 

homeowners who are unemployed, “underwater” 

on their loans (those who owe more on their home 

than it is currently worth) or struggling with 

second liens. MHA also includes programs to help 

homeowners with loans insured or guaranteed by 

FHA and the U.S. Department of Agriculture 

(USDA).

All MHA disbursements are made to servicers 

either for themselves or for the benefit of 

borrowers and investors, and all payments are 

contingent on borrowers remaining in good 

standing.

Fannie Mae, as the MHA Program Administrator, 

provides direct programmatic support as a

financial agent on behalf of OFS. Freddie Mac 

provides compliance oversight of servicers as 

financial agent on behalf of OFS, and the servicers 

work directly with the borrowers to modify and 

service the borrowers’ loans. Fees paid to Fannie 

Mae and Freddie Mac are included in 

Administrative Costs reported on the Statement 

of Net Cost.

The MHA program terminated on December 31, 

2016, except with respect to certain loan 

modification applications made before such date, 

per December 2015, Section 709(b) of the 

Consolidated Appropriations Act, 2016 (the Act).

In fiscal year 2020, Treasury de-obligated an 

additional $559 million from MHA, lowering 

Treasury’s obligation to $22.9 billion.

Hardest Hit Fund

The HHF was implemented in fiscal year 2010 

and provides locally tailored assistance to states 

hit hardest by the housing market downturn, to 

assist struggling homeowners and help stabilize 

housing markets through each state’s Housing 

Finance Agency (HFA). States that meet the 

criteria for this program, consisting of Alabama, 

Arizona, California, Florida, Georgia, Illinois, 

Indiana, Kentucky, Michigan, Mississippi, 

Nevada, New Jersey, North Carolina, Ohio, 

Oregon, Rhode Island, South Carolina, Tennessee, 

as well as the District of Columbia, receive 

funding from OFS. States have until December 

31, 2021 to expend all HHF program funding and 

March 31, 2022 to expend all HHF administrative

funding.

Starting in fiscal year 2020 and continuing 

thereafter, states that have reached their end-ofterm are required to return any remaining drawn 

but unspent funds to Treasury. During fiscal year 

2021, six states returned $114 million. During 

fiscal year 2020, two states returned $91 million.

FHA Refinance Program

The FHA Refinance Program is intended to 

encourage refinancing of existing underwater 

mortgage loans not currently insured by FHA into 

FHA-insured mortgages. OFS established a letter 

of credit that obligated OFS’s portion of any 

claims associated with the FHA-guaranteed 

mortgages. OMB determined that for budgetary 

purposes, the FHA Refinance Program cost is 

calculated under the FCRA, and accordingly OFS 

determined that it was appropriate to follow 

SFFAS No. 2 for financial reporting. Therefore, 

the liability is calculated at the net present value 

of estimated future cash flows. Homeowners were 

able to refinance into FHA guaranteed mortgages 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

40 NOTES TO THE FINANCIAL STATEMENTS

through December 31, 2016, and OFS will honor 

its share of claims against the letter of credit 

through December 31, 2022. Cumulatively, as of 

September 30, 2021 and September 30, 2020, 

4,200 loans that required potential Treasury 

contribution, with a total value of $620 million, 

had been refinanced through the program for both 

years, of which 410 and 466, respectively, could 

still require a Treasury contribution.

OFS originally deposited $50 million with a 

commercial bank as its agent to administer 

payment of claims under the program; that 

amount was reduced to $10 million in 2015.

OFS’s maximum exposure for all active loans for 

FHA’s guarantee totaled $3 and $4 million at 

September 30, 2021 and 2020, respectively. The 

reduced maximum exposure at September 30, 

2021 was the result of expired guarantees under 

the program during fiscal year 2021. OFS’s 

guarantee resulted in a liability of $0.1 million

and $0.2 million at September 30, 2021 and 2020, 

respectively. The liability was calculated, using 

credit reform accounting, as the present value of 

the estimated future cash outflows for OFS’s

share of losses incurred on any defaults of the 

FHA guaranteed loans. Cumulatively, $0.4 

million in claim payments were made as of 

September 30, 2021 and 2020, respectively. OFS 

paid $0.2 million in fiscal years 2021 and 2020 to 

maintain the letter of credit.

At September 30, 2021 and 2020, OFS’s 

remaining obligation under the FHA program was 

$23 million.

Budget subsidy rates for the program, entirely for 

defaults, were set at 0.8 percent for loans 

guaranteed in fiscal year 2017 (loans endorsed by 

FHA from October 1, 2016 to December 31, 2016).

The table below recaps housing program 

commitments as of September 30, 2021, and 

payments and accruals as of September 30, 2021

and 2020.

Commitments as 

of September 30,

Fiscal Year Payments through 

September 30, Accruals as of September 30, 

(Dollars in Millions) 20211

2021 2020 2021 2020

MHA $ 22,910 $ 479 $ 658 $ 29 $ 49

HHF Hardest Hit Fund 9,600 - 102 - -

FHA Short Refinance2

 45 - - - -

Totals $ 32,555 $ 479 $ 760 $ 29 $ 49

1

Total commitments represent amounts obligated to support all of OFS's Housing programs. As of September 30, 2021, 

$1,181 million remains available to be spent. FHA-Refinance commitments include a maximum of $18 million of 

administrative fees that can be charged over the life of the program for the Letter of Credit facility.

2

Payments do not include $10 million of reserve funds transferred, shown on Balance Sheet as Cash on Deposit for Housing 

Program, nor the subsidy cost to fund OFS's estimated share of defaults, which establishes the liability for losses, see Note 

4. Payments are the FHA-Refinance Letter of Credit administrative expense only.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 41

NOTE 6. EQUITY INVESTMENTS, NET AND FHA REFINANCE PROGRAM

OFS administers programs designed to help 

stabilize the financial system and restore the flow of 

credit to consumers and businesses. OFS made 

direct loans and equity investments under TARP. 

OFS also entered into other credit programs, which 

currently consist of a loss-sharing program under TARP. 

The table below recaps OFS’s remaining programs by 

title and type:

Program Program Type

Direct Loans and Equity Investments

 Capital Purchase Program Equity Investment/Subordinated Debentures

 Community Development Capital Initiative Equity Investment/Subordinated Debentures

 Automotive Industry Financing Program Equity Investment and Direct Loan

Other Credit Program

 FHA Refinance Program Loss-sharing Program with FHA

Equity Investment Programs

Capital Purchase Program

In October 2008, OFS began implementation of the 

TARP with the CPP, designed to help stabilize the 

financial system by assisting in building the capital 

base of certain viable U.S. financial institutions to 

increase the capacity of those institutions to lend to 

businesses and consumers and support the economy.

OFS invested a total of $204.9 billion in 707 

institutions under the CPP program between 

October 2008 and December 2009.

Under this program, OFS purchased senior 

perpetual preferred stock from qualifying U.S. 

controlled banks, savings associations, and certain 

bank and savings and loan holding companies 

(Qualified Financial Institution or QFI). The senior 

preferred stock had a stated dividend rate of 5.0 

percent through year five, which increased to 9.0 

percent in subsequent years. In addition to the 

senior preferred stock, OFS received warrants, with 

a 10-year term, as required by Section 113(d) of 

EESA, from public QFIs to purchase a number of 

shares of common stock. QFIs that are Subchapter 

S corporations issued subordinated debentures 

instead of preferred stock (to comply with tax code

regulations) with interest rates of 7.7 percent for the 

first five years and 13.8 percent thereafter. OFS 

received warrants from non-public QFIs for the 

purchase of additional senior preferred stock (or

subordinated debentures if appropriate) with a 

stated dividend rate of 9.0 percent (13.8 percent 

interest rate for subordinate debentures) and a 

liquidation preference equal to 5.0 percent of the 

total senior preferred stock (additional subordinate 

debenture) investment. These warrants were 

immediately exercised and resulted in OFS holding 

additional senior preferred stock (subordinated 

debentures) (collectively referred to as “warrant 

preferred stock”) of non-public QFIs.

In addition to the above transactions, OFS entered 

into other transactions with various financial 

institutions including exchanging existing preferred 

shares for a like amount of non-tax-deductible Trust 

Preferred Securities, exchanging preferred shares 

for shares of mandatorily convertible preferred 

securities and selling preferred shares to financial 

institutions that were acquiring the QFIs that have 

issued the preferred shares.

Generally, these transactions are entered into with 

financial institutions in poor financial condition with 

a high likelihood of failure. As such, in accordance

with SFFAS No. 2, these transactions are considered 

workouts and not modifications. The changes in cost 

associated with these transactions are captured in 

the year-end reestimates.

During fiscal years 2021 and 2020 there were no 

institutions closed by their regulators or declaring 

bankruptcy.

There were no CPP institutions written off during 

fiscal year 2021 and 2020. As of September 30, 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

42 NOTES TO THE FINANCIAL STATEMENTS

2021, there was one institution with an outstanding 

OFS investment.

In fiscal year 2021, OFS received $1 million in 

repayments for a CPP investment with, as of 

September 30, 2021, an outstanding balance of $12

million and value of $3 million.

In fiscal year 2020, OFS did not receive any

repayments from its CPP investments with, as of

September 30, 2020, an outstanding balance of $17

million and value of $15 million.

Community Development Capital Initiative

In February 2010, OFS announced the CDCI to 

invest lower cost capital in Community Development 

Financial Institutions (CDFIs). Under the terms of 

the program, OFS purchased senior preferred stock 

(or subordinated debt) from eligible CDFIs. The 

senior preferred stock had an initial dividend rate of 

2 percent. CDFI banks and thrifts could apply to 

receive capital up to 5 percent of risk-weighted 

assets while CDFI credit unions could apply for up 

to 3.5 percent of total assets. To encourage 

repayment while recognizing the unique 

circumstances facing CDFIs, the dividend rate 

increases to 9 percent after eight years.

CDFIs participating in the CPP, subject to certain 

criteria, were eligible to exchange, through 

September 30, 2010, their CPP preferred shares 

(subordinated debt) then held by OFS for CDCI 

preferred shares (subordinated debt). These 

exchanges were treated as disbursements from 

CDCI and repayments to CPP. OFS invested a total 

of $570 million ($363 million as a result of 

exchanges from CPP) in 84 institutions under the 

CDCI. As of September 30, 2021 and 2020 there 

were two institutions with outstanding OFS 

investments.

During fiscal years 2021 and 2020, there were no 

CDCI institutions written off.

In fiscal year 2021 OFS did not receive any

repayments. In fiscal year 2020, OFS received $5

million in repayments from its CDCI investments. 

As of September 30, 2021 and 2020 the outstanding

and valuation balance is $1 million.

Automotive Industry Financing Program

General Motors Company and General Motors 

Corporation

In the period ended September 30, 2009, the OFS 

provided $51.0 billion to General Motors 

Corporation (Old GM) through various loan 

agreements including the initial loan for general and 

working capital purposes, auto supplier and 

warranty programs, and the final loan for debtor in 

possession (DIP) financing while Old GM was in 

bankruptcy. Since 2014, OFS retained no ownership 

of GM. OFS received a cumulative total of $39.7 

billion in stock sale proceeds, loan repayments, 

dividends and interest on the GM program.

In fiscal year 2011, $986 million of OFS’s loan to Old 

GM was converted to an administrative claim. OFS 

retains the right to recover additional proceeds but 

recoveries are dependent on actual liquidation 

proceeds and pending litigation. Because OFS did 

not expect to recover any significant additional 

proceeds from this claim, OFS recognized a write-off 

of the remaining $826 million in fiscal year 2014 

resulting in no outstanding balance since September 

30, 2014. During fiscal year 2018, OFS recovered 

$13 million on this administrative claim.

In August 2016, Treasury along with Export 

Development Canada (EDC), which jointly financed 

the administration of the General Motors 

bankruptcy, entered into a settlement with the 

Unsecured Creditors Committee of General Motors 

Corporation (UCC) to split any proceeds of the 

Avoidance Action Trust (AAT) litigation, with 

Treasury and EDC receiving 30 percent and the 

unsecured creditors receiving 70 percent. As a 

condition of the settlement, OFS provided an 

advance of $13 million to the AAT to fund the 

ongoing operating and legal costs associated with 

the litigation. This settlement yields the most 

favorable attainable economic outcome for OFS to 

recover funds related to this claim. During fiscal 

year 2021 OFS received $3 million in AAT 

distributions from the settlement. During fiscal 

year 2019 OFS received $73 million in AAT 

distributions from the settlement.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 43

Valuation Methodology 

OFS applies fair value and the provisions of SFFAS 

No. 2 to account for equity investments and the FHA

Refinance Program. This standard requires 

measurement of the asset or liability at the net 

present value of the estimated future cash flows. 

The cash flow estimates for each transaction reflect 

the actual structure of the instruments. For each of 

these instruments, analytical cash flow models 

generate estimated cash flows to and from OFS over 

the estimated term of the instrument. Further, each

cash flow model reflects the specific terms and 

conditions of the program, technical assumptions 

regarding the underlying assets, risk of default or 

other losses, and other factors as appropriate. The 

models also incorporate an adjustment for market 

risk to reflect the additional return required by the 

market to compensate for variability around the 

expected losses reflected in the cash flows (the 

“unexpected loss”).

The adjustment for market risk requires the OFS to 

determine the return that would be required by 

market participants to enter into similar 

transactions or to purchase the assets held by OFS. 

Accordingly, the measurement of the assets 

attempts to represent the proceeds expected to be 

received if the assets were sold to a market 

participant in an orderly transaction. The 

methodology employed for determining market risk 

for equity investments generally involves using 

market prices of similar securities to estimate an 

appropriate market-adjusted discount rate that 

results in measuring equity investments at fair 

value. The adjustment for market risk for loans is 

intended to capture the risk of unexpected losses, 

but not intended to represent fair value, i.e., the 

proceeds that would be expected to be received if the 

loans were sold to a market participant. OFS uses 

market observable inputs, when available, in 

developing cash flows and incorporating the 

adjustment required for market risk. For purposes 

of this disclosure, OFS has classified its programs’ 

asset valuations as follows, based on the 

observability of inputs that are significant to the 

measurement of the asset:

• Quoted prices for Identical Assets (Level 1): The 

measurement of assets in this classification is 

based on direct market quotes for the specific 

asset, e.g., quoted prices of common stock.

• Significant Observable Inputs (Level 2): The 

measurement of assets in this classification is

primarily derived from market observable data, 

other than a direct market quote, for the asset. 

This data could be market quotes for similar 

assets for the same entity.

• Significant Unobservable Inputs (Level 3): The 

measurement of assets in this classification is 

primarily derived from inputs which generally 

represent management’s best estimate of how a 

market participant would assess the risk 

inherent in the asset. These unobservable 

inputs are used because there is little to no 

direct market activity.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

44 NOTES TO THE FINANCIAL STATEMENTS

The following table displays the assets held by the observability of inputs significant to the measurement of 

each value.

(Dollars in Millions)

Quoted 

Prices for 

Identical 

Assets 

(Level 1)1

Significant 

Observable 

Inputs 

(Level 2)

Significant 

Unobservable 

Inputs 

(Level 3) Total

Program

 CPP $ - $ - $ 3 $ 3

 CDCI - - 1 1

Total TARP Programs $ - $ - $ 4 $ 4

(Dollars in Millions)

Quoted 

Prices for 

Identical 

Assets 

(Level 1)1

Significant 

Observable 

Inputs 

(Level 2)

Significant 

Unobservable 

Inputs 

(Level 3) Total

Program

 CPP $ 4 $ - $ 11 $ 15

 CDCI - - 1 $ 1

Total TARP Programs $ 4 $ - $ 12 $ 16

1

For CPP, Level 1 included Harbor Bankshares Corporation, valued at $4.1 million (Original disbursement of $6.8 million, restructured into 

4,287,024 common shares (or 65.8% of Shares Outstanding)). While Treasury held majority ownership in Harbor Bankshares Corporation, the 

holdings did not meet the criteria for consolidation into these financial statements.

As of September 30, 2020

As of September 30, 2021

1

 For CPP in fiscal year 2021, Treasury sold all common shares of its investment in Harbor Bankshares Corporation and has no investment 

remaining in this financial institution as of September 30, 2021. This investment was classified as a Level 1 asset as of September 30, 2020.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 45

The following provides a description of the 

methodology used to develop the cash flows and 

incorporate the market risk into the measurement of 

OFS assets.

Financial Institution Equity 

Investments6

The estimated values of preferred equity 

investments are the net present values of the 

expected dividend payments and proceeds from 

repurchases and sales.

In fiscal year 2018, OFS implemented a new 

estimation methodology in its model for its 

remaining equity investments to better capture the 

expected performance of remaining securities. The 

model estimates the probability of default, preferred 

share calls and preferred dividends based on the 

institution’s historical dividend payment 

performance and on the historical behavior of the 

equity investments for similar TARP and non-TARP 

Treasury programs. Inputs to the model include 

institution-specific dividend payments, preferred 

share calls, failures for TARP and non-TARP 

Treasury programs, as well as a financial market 

stress index published by the Federal Reserve Bank 

of St. Louis. The market risk adjustment is 

estimated by applying credit spreads from similar 

securities.

For both of its fiscal year 2021 and 2020 models,

OFS estimates the values and projects the cash 

flows of warrants using an option-pricing approach 

based on the current stock price and its volatility. 

Investments in common stock that are exchange 

traded are valued at the quoted market price as of 

year-end.

6 This consists of equity investments made under CPP and CDCI.

Subsidy Cost and Reestimates

The recorded subsidy cost of equity investments or 

the FHA Refinance program is based upon the 

calculated net present value of expected future cash 

flows. OFS’s actions, as well as changes in 

legislation may change estimated future cash flows 

resulting in changes to subsidy cost. These changes 

in subsidy cost are recorded as modifications. The 

cost or reduction in cost of a modification is 

recognized when it occurs.

During fiscal year 2021 and 2020, there were no 

modifications to any of the remaining programs.

The purpose of reestimates is to update original 

program subsidy cost estimates to reflect actual cash 

flow experience as well as changes in equity 

investment valuations or forecasts of future cash 

flows. Forecasts of future cash flows are updated 

based on actual program performance to date, 

additional information about the portfolio, 

additional publicly available relevant historical 

market data on securities performance, revised 

expectations for future economic conditions, and 

enhancements to cash flow projection methods.

For fiscal years 2021 and 2020, financial statement 

reestimates for all programs, except the FHA

Refinance program, were performed using actual 

financial transaction data through September 30.

For fiscal years 2021 and 2020 market and security 

specific data publicly available as of September 30 

were used. FHA Refinance reestimates used actual 

financial transaction data through August 31.

Net upward reestimates for fiscal year 2021 totaled 

$9 million. Net upward reestimates for fiscal year 

2020 totaled $2 million. Descriptions of the 

reestimates, by OFS’s Program, are as follows:
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

46 NOTES TO THE FINANCIAL STATEMENTS

Capital Purchase Program

The $12 million upward reestimate for CPP for fiscal 

year ended September 30, 2021 was the result of 

sales and updated performance assumptions.

The $3 million downward reestimate for CPP for 

fiscal year ended September 30, 2020 the result of 

collections and improved market values.

Community Development Capital Initiative

The $0.1 million downward reestimate for CDCI for 

fiscal year ended September 30, 2021 was the result

of collections and improved market values.

The $5 million upward reestimate for CDCI for fiscal 

year ended September 30, 2020 was the result of

sales and reduced market values.

Automotive Industry Financing Program

For fiscal year ended September 30, 2021 a $3

million downward reestimate was due to collections 

related to the AAT distributions.

Summary Table

The following table recaps gross equity investments, 

subsidy allowance, net equity investments, 

reconciliation of subsidy cost allowance and subsidy 

cost, by TARP program, as of and for the fiscal years 

ended September 30, 2021 and 2020. OFS’s 

authority expired October 3, 2010 and all 

investments were disbursed and no commitments 

were made thereafter, so there were no investment 

program budget execution subsidy rates for fiscal 

years 2021 and 2020.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 47

Troubled Asset Relief Program Equity Investments

(Dollars in Millions) TOTAL CPP AIFP CDCI

As of September 30, 2021

Equity Investment Programs:

Equity Investments Outstanding, Gross $ 13 $ 12 $ - $ 1

Subsidy Cost Allowance (9) (9) - -

Equity Investments Outstanding, Net $ 4 $ 3 $ - $ 1

Reconciliation of Subsidy Cost Allowance:

Balance, Beginning of Period $ 2 $ 2 $ - $ -

 Net Proceeds from Sales and Repurchases of Assets

 in Excess of (Less than) Cost (2) (5) 3 -

Balance, End of Period, Before Reestimates - (3) 3 -

 Subsidy Reestimates Upward (Downward), Net 9 12 (3) -

Balance, End of Period $ 9 $ 9 $ - $ -

Reconciliation of Subsidy Cost (Income):

 Subsidy Reestimates Upward (Downward), Net 9 12 (3) -

Total Equity Investment Programs

 Subsidy Cost (Income) $ 9 $ 12 $ (3) $ -

(Dollars in Millions) TOTAL CPP AIFP CDCI

As of September 30, 2020

Equity Investment Programs:

Equity Investments Outstanding, Gross $ 18 $ 17 $ - $ 1

Subsidy Cost Allowance (2) (2) - -

Equity Investments Outstanding, Net $ 16 $ 15 $ - $ 1

Reconciliation of Subsidy Cost Allowance:

Balance, Beginning of Period $ 17 $ 5 $ - $ 12

 Net Proceeds from Sales and Repurchases of Assets

 in Excess of (Less than) Cost (17) - - (17)

Balance, End of Period, Before Reestimates - 5 - (5)

 Subsidy Reestimates Upward (Downward), Net 2 (3) - 5

Balance, End of Period $ 2 $ 2 $ - $ -

Reconciliation of Subsidy Cost (Income):

 Subsidy Reestimates Upward (Downward), Net 2 (3) - 5

Total Equity Investment Programs

 Subsidy Cost (Income) $ 2 $ (3) $ - $ 5
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

48 NOTES TO THE FINANCIAL STATEMENTS

NOTE 7. DUE TO THE GENERAL FUND

As of September 30, 2021 and 2020, OFS accrued $4 

million of downward reestimates payable to the 

General Fund. Due to the General Fund is a nonentity liability on the Balance Sheet.

NOTE 8. PRINCIPAL PAYABLE TO THE BUREAU OF THE FISCAL SERVICE (Fiscal 

Service) 

The equity investment and the FHA Refinance 

Programs, accounted for under federal credit reform,

are funded by subsidy appropriations and 

borrowings from the Fiscal Service. OFS also 

borrows funds to pay the Treasury General Fund for 

downward reestimates (these reduce program 

subsidy cost) in advance of receiving the expected 

cash flows that cause the downward reestimate. 

OFS makes periodic principal repayments to the 

Fiscal Service based on the analysis of its cash 

balances and future disbursement needs. All debt is 

intragovernmental and covered by budgetary 

resources. See additional details on borrowing 

authority in Note 11, Statement of Budgetary 

Resources.

Debt transactions for the fiscal years ended 

September 30, 2021 and 2020 were as follows: 

(Dollars in Millions) 2021 2020

Beginning Balance, Principal Payable to the Fiscal Service $ 22 $ 35

 New Borrowings 3 -

 Repayments (8) (13)

Ending Balance, Principal Payable to the Fiscal Service $ 17 $ 22

As of September 30,

Borrowings from the Fiscal Service by the OFS, outstanding as of September 30, 2021 and 2020 were as 

follows:

(Dollars in Millions) 2021 2020

CPP $ 16 $ 14

CDCI 1 8

Total Borrowings Outstanding $ 17 $ 22

As of September 30,

As of September 30, 2021, borrowings carried 

remaining terms ranging from 17 to 20 years, with 

interest rates from 2.96 percent to 3.80 percent. As 

of September 30, 2020, borrowings carried 

remaining terms ranging from 18 to 21 years, with

interest rates from 2.96 percent to 3.80 percent.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 49

NOTE 9. COMMITMENTS AND CONTINGENCIES

OFS is party to various legal actions and claims 

brought by or against it. In the opinion of 

management and the Office of General Counsel, the 

ultimate resolution of these legal actions and claims 

will not have a materially adverse effect on OFS’s

financial statements. Contingent liabilities related 

to litigation are recorded in the financial statements 

if and when losses are determined to be probable 

and measurable. Contingent liabilities are disclosed 

where the conditions for liability recognition have 

not been met and the likelihood of unfavorable 

outcome is more than remote. If litigation losses are 

to be paid by the Treasury Judgment Fund, the 

related cost is allocated to the appropriate federal 

entity, which records the cost and an offsetting 

financing source in its financial statements.

Refer to Note 5 for additional commitments relating 

to the Treasury Housing Programs under TARP and 

FHA Refinance Programs and Note 6 relating to 

Equity Investments, Net.

NOTE 10. STATEMENT OF NET COST

The Statement of Net Cost (SNC) presents the net 

cost of operations for OFS under the strategic goal to 

transform government-wide financial stewardship. 

OFS has determined that all initiatives and 

programs under the TARP fall within this strategic 

goal.

OFS’s SNC reports the annual accumulated full cost 

of the TARP’s output, including both direct and 

indirect costs of the program services and output 

identifiable to TARP, in accordance with SFFAS No. 

4, Managerial Cost Accounting Concepts and 

Standards.

OFS’s SNC for fiscal year 2021 includes $1 million of 

intragovernmental costs relating to interest expense 

on borrowings from the Fiscal Service.

Subsidy allowance amortization on the SNC is the 

difference between interest income on financing 

fund account balances, dividends and interest 

income on equity investments and FHA Refinance 

programs from TARP participants, and interest 

expense on borrowings from the Fiscal Service. The 

subsidy allowance account is used to present the 

equity investments at the estimated net present 

value of future cash flows. OFS’s SNC includes $9

million of subsidy allowance amortization for fiscal 

year 2021.
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

50 NOTES TO THE FINANCIAL STATEMENTS

NOTE 11. STATEMENT OF BUDGETARY RESOURCES

The Statement of Budgetary Resources (SBR) 

presents information about total budgetary 

resources available to OFS and the status of those 

resources. For the fiscal year ended September 

30, 2021, OFS’s total resources in budgetary 

accounts were $201 million and resources in nonbudgetary financing accounts, including spending 

authority from collections of equity investment 

liquidations, dividends, interest and fees, were $9

million. For the fiscal year ended September 30, 

2020, OFS’s total resources in budgetary accounts 

were $223 million and resources in non-budgetary 

financing accounts were $80 million. 

Due to a change in reporting guidance, the final 

repayments of $114 million received for the 

Hardest Hit Fund for fiscal year 2021 is not 

reported on the SBR because it is no longer 

available for obligation since the purpose for 

which the appropriation was enacted has been 

fulfilled. The $91 million return of funds from 

fiscal year 2020 is included in the status of 

budgetary resources section as unapportioned, 

unexpired. 

Permanent Indefinite Appropriations

OFS receives permanent indefinite appropriations 

annually, if necessary, to fund increases in the 

projected subsidy costs of equity investments and 

FHA Refinance programs as determined by the 

reestimation process required by the FCRA.

Additionally, Section 118 of the EESA states that 

the Secretary may issue public debt securities and 

use the resulting funds to carry out EESA and 

that any such funds expended or obligated by the 

Secretary for actions authorized by EESA, 

including the payment of administrative expenses, 

shall be deemed appropriated at the time of such 

expenditure or obligation.

Borrowing Authority 

OFS is authorized to borrow from the Fiscal 

Service to pay interest costs in excess of interest 

income and to fund downward reestimates 

transfers to the General Fund. As of September 

30, 2021, OFS had no borrowing authority 

available of the $3 million authorized.

As of September 30, 2020, OFS had no borrowing 

authority available and no remaining funds. OFS 

uses dividends and interest received as well as 

recoveries on direct loans and liquidation of equity 

investments to repay debt in the non-budgetary 

direct loan and equity investment program 

financing accounts. These receipts are not 

available for any other use per credit reform 

accounting guidance.

Apportionment Categories of 

Obligations Incurred: Direct versus 

Reimbursable Obligations

All of OFS’s apportionments are Direct and are 

Category B. Category B apportionments 

typically distribute budgetary resources on a 

basis other than calendar quarters, such as by 

activities, projects, objects or a combination of 

these categories. OFS obligations incurred are 

direct obligations (obligations not financed from 

intragovernmental reimbursable agreements).

Undelivered Orders

Undelivered orders as of September 30, 2021

were $1.2 billion in budgetary accounts, all NonFederal and no funds remained in nonbudgetary financing accounts. Undelivered 

orders as of September 30, 2020 were $1.7

billion in budgetary accounts and no funds 

remained in non-budgetary financing accounts.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

NOTES TO THE FINANCIAL STATEMENTS 51

Explanation of Differences Between 

the Statement of Budgetary Resources 

and the Budget of the United States 

Government

Federal agencies and entities are required to 

explain material differences between amounts 

reported in the SBR and the actual amounts 

reported in the Budget of the U.S. Government 

(the President’s Budget).

The 2022 President’s Budget, with the “Actual” 

column completed for the fiscal year ended 

September 30, 2020, was published in June 2021,

and reconciled to the SBR. The only differences 

between the two documents were due to:

• Rounding; and

• Expired funds that are not shown in the 

“Actual” column of the President’s Budget.

NOTE 12. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGETARY 

AGENCY OUTLAYS, NET

The Reconciliation of Net Cost of Operations to 

Budgetary Agency Outlays, Net explains the 

difference between proprietary financial 

accounting information and budgetary accounting 

information. Financial accounting is intended to 

provide a picture of the government’s financial 

operations and financial position and is presented 

on an accrual basis. The accrual basis includes 

information about costs arising from the 

consumption of assets and the incurrence of 

liabilities. Budgetary accounting is used for 

planning and control purposes and relates to both 

the receipt and use of cash, as well as reporting 

the federal deficit. The reconciliation of net cost, 

presented on an accrual basis, and the net 

outlays, presented on a budgetary basis, provides 

an explanation of the relationship between 

financial accounting and budgetary information. 

The reconciliation serves not only to identify costs 

paid for in the past and those that will be paid in 

the future, but also to assure integrity between 

financial and budgetary financial accounting. For 

the fiscal years ended September 30, 2021 and 

2020 the Reconciliation of Net Cost of Operations 

to Budgetary Agency Outlays, Net consisted of the 

following:
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

52 NOTES TO THE FINANCIAL STATEMENTS

Dollars in Millions

Federal Non-Federal Total Fiscal 

Year 2021

Net Cost of Operations $ 6 $ 382 $ 388

Components of Net Cost That Are Not Part of Budgetary Outlays:

Year-end credit reform subsidy re-estimates - 5 5

(Increase) / Decrease in Liabilities Not Affecting Budgetary Outlays:

Accounts Payable and Other Liabilities (8) (4) (12)

Making Home Affordable Program - 20 20

Total Components of Net Operating Cost Not Part of Budgetary Outlays (8) 21 13

Components of Budgetary Outlays That Are Not Part of Net Cost:

Distributed Offsetting Receipts (4) - (4)

Total Components of Budgetary Outlays That Are Not Part of Net Cost (4) - (4)

Budgetary Agency Outlays, net (SBR) $ 397

Dollars in Millions

Federal Non-Federal Total Fiscal 

Year 2020

Net Cost of Operations $ 7 $ 676 $ 683

Components of Net Cost That Are Not Part of Budgetary Outlays:

Year-end credit reform subsidy re-estimates - 5 5

(Increase) / Decrease in Liabilities Not Affecting Budgetary Outlays:

Accounts Payable and Other Liabilities - 6 6

Making Home Affordable Program - 25 25

Total Components of Net Operating Cost Not Part of Budgetary Outlays - 36 36

Components of Budgetary Outlays That Are Not Part of Net Cost:

Effect of prior year agencies credit reform subsidy re-estimates - 1 1

Distributed Offsetting Receipts (74) - (74)

Total Components of Budgetary Outlays That Are Not Part of Net Cost (74) 1 (73)

Budgetary Agency Outlays, net (SBR) $ 646
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

REQUIRED SUPPLEMENTARY INFORMATION 53

REQUIRED SUPPLEMENTARY INFORMATION

Dollars in Millions

BUDGETARY RESOURCES

 Unobligated Balance Brought Forward, October 1 $ 166 $ 5 $ 91 $ 5 $ 75

 Recoveries of Prior-Year Unpaid Obligations 16 - - - 16

 Actual Repayments of Debt, Prior-Year Balances - (3) - (3) -

 Cancelled Authority (27) - - - (27)

Unobligated Balance from Prior-Year Budget Authority, Net 155 2 91 2 64

Appropriations 46 - 5 - 41

Borrowing Authority - 3 - 3 -

Spending Authority from Offsetting Collections - 4 - 4 -

TOTAL BUDGETARY RESOURCES (Note 11) $ 201 $ 9 $ 96 $ 9 $ 105

STATUS OF BUDGETARY RESOURCES

New Obligations and Upward Adjustments (Total) $ 41 $ 5 $ 5 $ 5 $ 36

Unobligated Balance, End of Year:

 Apportioned, Unexpired Accounts 4 - - - 4

 Unapportioned, Unexpired Accounts 91 4 91 4 -

 Unexpired Unobligated Balance, End of Year 95 4 91 4 4

 Expired Unobligated Balance, End of Year 65 - - - 65

Unobligated Balance, End of Year (Total) 160 4 91 4 69

TOTAL STATUS OF BUDGETARY RESOURCES $ 201 $ 9 $ 96 $ 9 $ 105

OUTLAYS, NET AND DISBURSEMENTS, NET

Outlays, Net (Total) 401 370 31

Distributed Offsetting Receipts (4) (4) -

Agency Outlays, Net $ 397 $ 366 $ 31

Disbursements, Net (Total) $ (5) $ (5)

REQUIRED SUPPLEMENTARY INFORMATION

COMBINED STATEMENT OF BUDGETARY RESOURCES
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

54 REQUIRED SUPPLEMENTARY INFORMATION

Dollars in Millions

BUDGETARY RESOURCES

 Unobligated Balance Brought Forward, October 1 $ 94 $ 80 $ - $ 80 $ 94

 Recoveries of Prior-Year Unpaid Obligations 576 - 559 - 17

 Actual Repayments of Debt, Prior-Year Balances - (2) - (2) -

 Cancelled Authority (37) - - - (37)

 Other Changes in Unobligated Balances (468) - (468) - -

Unobligated Balance from Prior-Year Budget Authority, Net 165 78 91 78 74

Appropriations 58 - 7 - 51

Borrowing Authority - - - - -

Spending Authority from Offsetting Collections - 2 - 2 -

TOTAL BUDGETARY RESOURCES (Note 11) $ 223 $ 80 $ 98 $ 80 $ 125

STATUS OF BUDGETARY RESOURCES

New Obligations and Upward Adjustments (Total) $ 57 $ 75 $ 7 $ 75 $ 50

Unobligated Balance, End of Year:

 Apportioned, Unexpired Accounts 8 1 - 1 8

 Unapportioned, Unexpired Accounts 91 4 91 4 -

 Unexpired Unobligated Balance, End of Year 99 5 91 5 8

 Expired Unobligated Balance, End of Year 67 - - - 67

Unobligated Balance, End of Year (Total) 166 5 91 5 75

TOTAL STATUS OF BUDGETARY RESOURCES $ 223 $ 80 $ 98 $ 80 $ 125

OUTLAYS, NET AND DISBURSEMENTS, NET

Outlays, Net (Total) 720 677 43

Distributed Offsetting Receipts (74) (74) -

Agency Outlays, Net $ 646 $ 603 $ 43

Disbursements, Net (Total) $ 63 $ 63

REQUIRED SUPPLEMENTARY INFORMATION

COMBINED STATEMENT OF BUDGETARY RESOURCES
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

OTHER INFORMATION 55
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

56 OTHER INFORMATION
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

OTHER INFORMATION 57

Additional TARP Historical Information

Bank Support Programs

CPP

CPP was launched in October 2008 to help 

stabilize the financial system by providing 

capital to viable financial institutions of all sizes 

throughout the nation. OFS continues to winddown the remaining CPP investments through 

repayments by those institutions that are able to 

repay, restructurings and sales of common stock, 

where OFS’s investment shares were converted 

to common stock holdings.

OFS received preferred stock or debt in each 

bank in which it made an investment, as well as 

warrants. Under the terms of the CPP, 

participating financial institutions were to repay 

the funds they received, with the approval of 

their regulators.

Targeted Investment Program

OFS established the Targeted Investment 

Program (TIP) in December 2008. OFS invested 

a total of $40.0 billion in two institutions – Bank 

of America (BofA) and Citigroup – under the 

TIP. OFS completed the wind-down of the TIP 

in December 2009 when both BofA and 

Citigroup repaid their TIP investments in full. 

OFS received net proceeds of $4.4 billion in 

excess of disbursements.

Asset Guarantee Program

Under the Asset Guarantee Program (AGP), 

TARP commitments were used to support two 

institutions – BofA and Citigroup. BofA, 

however, ultimately decided not to participate in 

this program and paid OFS a termination fee of 

$276 million. In January 2009, OFS, the 

Federal Reserve, and the Federal Deposit 

Insurance Corporation (FDIC) agreed to share 

potential losses on a $301.0 billion pool of 

Citigroup’s covered assets. As a premium for the 

guarantee to Citigroup, OFS received $4.0 

billion of Citigroup preferred stock, which was 

reduced by $1.8 billion upon early termination of 

the agreement. OFS completed the wind-down 

of the AGP in February 2013, and received more 

than $4.1 billion in proceeds from the AGP 

without disbursing any claim payments.

Supervisory Capital Assessment Program

In 2009, Treasury worked with federal banking 

regulators to develop a comprehensive “stress 

test” known as the Supervisory Capital 

Assessment Program (SCAP). The SCAP closed 

on November 9, 2009, without making any 

investments.

CDCI

On February 3, 2010, OFS created the 

Community Development Capital Initiative 

(CDCI) to help viable certified Community 

Development Financial Institutions (CDFIs) and 

the communities they serve cope with effects of 

the financial crisis. Under this program, CDFI 

banks, thrifts, and credit unions received 

investments aggregating $570 million in capital 

with an initial dividend or interest rate of two 

percent. To encourage repayment while 

recognizing the unique circumstances facing 

CDFIs, the dividend rate increased to nine 

percent after eight years.

For additional information on the bank support 

programs please visit the OFS website at: TARP: 

Bank Investment Programs
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

58 OTHER INFORMATION

Credit Market Programs

Public-Private Investment Program

On March 23, 2009, OFS launched the Legacy 

Securities Public-Private Investment Program 

(PPIP) to help restart the market for non-agency 

residential mortgage-backed securities (RMBS) 

and commercial mortgage-backed securities 

(CMBS). OFS completed the wind-down of the 

PPIP during fiscal year 2015, with no debt or 

equity investments outstanding after the final 

equity repayment was made in June 2013.

Term Asset-Backed Securities Loan Facility

The Term Asset-Backed Securities Loan Facility 

(TALF) was a joint OFS-Federal Reserve 

program that was designed to restart the 

markets for asset-backed securities (ABS) and 

CMBS, which had ground to a virtual standstill 

during the early months of the financial crisis. 

As of September 30, 2015, all TALF loans 

provided by Federal Reserve Bank of New York 

(FRBNY) had been repaid in full and the 

program closed. Since inception, accumulated 

income earned from investments in TALF, LLC 

totaled $685 million.

Small Business Administration 7(a) 

Securities Purchase Program

OFS launched the Small Business 

Administration (SBA) 7(a) Securities Purchase 

Program to help facilitate the recovery of the 

secondary market for small business loans, and 

thus help free up credit for small businesses.

Under this program, OFS purchased securities 

comprised of the guaranteed portion of SBA 7(a) 

loans, which finance a wide range of small 

business needs. OFS invested approximately 

$367 million in 31 SBA 7(a) securities between 

March and September 2010. Investments under 

the SBA 7(a) program were fully liquidated by 

January 2012, resulting in proceeds in excess of 

cost of $9 million.

For additional information on the credit market 

programs, please visit the OFS website at: 

TARP: Credit Market Programs

Automotive Industry Financing Program

AIFP was launched in December 2008 to help 

prevent the disorderly liquidations of General 

Motors (GM) and Chrysler, which would have 

resulted in a significant disruption of the U.S. 

auto industry. Recognizing that both GM and 

Chrysler were on the verge of collapse, OFS 

disbursed $79.7 billion in loans and equity 

investments to GM, Chrysler, and General 

Motors Acceptance Corporation (now known as 

Ally Financial).

To further maximize the recovery of TARP funds 

for taxpayers, OFS, along with Export 

Development Canada (EDC), which jointly 

financed administration of the General Motors 

bankruptcy (Old GM), entered into a settlement 

with the Unsecured Creditors Committee of 

General Motors Corporation to split any 

proceeds of the AAT litigation, with OFS and 

EDC receiving 30 percent and the unsecured 

creditors receiving 70 percent. As a condition of 

the settlement, OFS and EDC provided an

advance of $15 million ($13 million provided by 

OFS) in September 2016 to the AAT to fund the 

ongoing litigation against certain lenders to Old 

GM. This settlement yields the most favorable 

attainable economic outcome to ensure OFS is 

repaid some portion of any assets recovered 

through the pending lawsuit.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

OTHER INFORMATION 59

Recoveries from the bankruptcy liquidation of 

Old GM remains possible.

For additional information on the AIFP, please 

visit the OFS website at: TARP: Automotive 

Programs

American International Group, Inc. Investment Program

In 2008, AIG facing potentially fatal liquidity 

problems and with the crisis threatening to 

intensify and spread more broadly throughout 

the economy, Treasury and FRBNY provided 

assistance to AIG. In December 2012, Treasury 

exited all remaining holdings in AIG through 

the sale of common stock and AIG’s repurchase 

of warrants. During the financial crisis, the 

Treasury’s and the FRBNY’s peak support for 

AIG totaled $182.3 billion. That included $69.8 

billion in TARP funds that OFS committed and 

$112.5 billion committed by the FRBNY, 

including $22.1 billion in commitments which 

were later cancelled. As a result of the combined 

efforts of AIG, Treasury, and the FRBNY, $22.7 

billion in excess of the total of funds disbursed 

were recovered through sales and other income.

OFS’s cumulative net proceeds from 

repayments, sales, dividends, interest, and other 

income related to AIG assets totaled $55.3 

billion. While TARP recovered less than its 

$67.8 billion total investment, this was offset by 

the proceeds from the additional Treasury 

shares of AIG, resulting in overall proceeds in 

excess of disbursements of $5.0 billion for 

Treasury as a whole.

For additional information on the AIG 

Investment Program, please visit the Office of 

Financial Stability website at: TARP: AIG 

Investment Program

Housing Programs

MHA

In early 2009, OFS launched MHA to help 

struggling homeowners avoid foreclosure and 

stabilize the housing market.

MHA is aimed at helping homeowners 

experiencing financial hardships to remain in 

their homes until their financial position 

improves or they relocate to a more sustainable 

living situation. At the same time, MHA 

protects the interests of taxpayers by disbursing 

funds only when transactions are completed and 

only as long as contracts remain in place.

The cornerstone of MHA is HAMP which 

provides eligible homeowners the opportunity to 

reduce their monthly mortgage payments to 

more affordable and sustainable levels to avoid 

foreclosure. In addition to HAMP, OFS 

introduced programs under MHA to help 

homeowners who are unemployed, “underwater” 

on their loan (i.e., those who owe more on their 

home than it is currently worth), or are 

struggling with a second lien. MHA also 

includes options for homeowners who would like 

to transition to a more affordable living situation 

through a short sale or deed-in-lieu of 

foreclosure.

The Act provided that MHA would terminate on 

December 31, 2016, except with respect to 

certain loan modification applications made 

before such date. As set forth in program 

guidelines, MHA servicers were required to 

evaluate applications submitted before the 

deadline and offer trial modifications to eligible 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

60 OTHER INFORMATION

applicants. All MHA transactions, including 

first and second lien permanent modifications, 

short sales or deeds-in-lieu of foreclosure, and 

unemployment forbearance plans, were required 

to be completed per program guidelines by 

December 1, 2017. At this point, MHA is in a 

steady state until final incentives on existing 

modifications are paid per program 

requirements. MHA has set new standards for 

mortgage assistance and consumer protection, 

which have contributed to millions of 

homeowners receiving assistance to avoid 

foreclosure through other government programs 

and proprietary mortgage modifications.

In addition to HAMP, MHA includes programs 

to help homeowners address specific types of 

mortgages, in conjunction with FHA and the 

United States Department of Agriculture 

(USDA).

HHF

HHF was established in February 2010 to 

provide targeted aid to homeowners in states hit 

hardest by the economic and housing market 

downturn. In an effort to restore stability to 

housing markets, HHF provides funding for 

state Housing Finance Agencies (together with 

the eligible entities, collectively “HFAs”) to 

develop locally-tailored foreclosure prevention 

solutions in areas that have been hardest hit by 

home price declines and high unemployment. In 

total, $9.6 billion in HHF funds has been 

allocated among 18 states and the District of 

Columbia.

HHF programs vary state to state, but may 

include such programs as mortgage payment 

assistance for unemployed or underemployed 

homeowners, reinstatement to bring 

homeowners current on their mortgage or 

property taxes, principal reduction to help 

homeowners modify or refinance into more 

affordable mortgages, funding to eliminate 

homeowners’ second lien loans, funding for 

blight elimination activities, funding for down 

payment assistance to homebuyers, and help for 

homeowners who are transitioning out of their 

homes into more affordable living situations.

Support for FHA Refinance Program

In March 2010, enhancements were made to an 

existing FHA program that permitted lenders to 

provide additional refinancing options to 

homeowners who owe more than their homes are 

worth because of large declines in home prices in 

their local markets. This program, known as the 

FHA Refinance Program, was intended to 

provide more opportunities for qualifying 

mortgage loans to be restructured and 

refinanced into FHA-insured loans. On 

December 31, 2016, the application period for 

the FHA Refinance Program ended.

For additional information on the housing 

programs, please visit the OFS website at: 

TARP: Housing Programs
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

OTHER INFORMATION 61

TARP Glossary

 

 

Asset-Backed Security (ABS): A financial 

instrument representing an interest in a pool 

of other assets, typically consumer loans. 

Most ABS are backed by credit card 

receivables, auto loans, student loans, or other 

loan and lease obligations.

 

Agency Financial Report (AFR): This report

provides an overview of the programs, 

accomplishments, challenges, and 

management’s accountability for the resources 

entrusted to the agency. The report is 

prepared in accordance with the requirements 

of the OMB Circular A-136, Financial 

Reporting Requirements.

Asset Guarantee Program (AGP): A TARP 

program under which OFS, together with the 

Federal Reserve and the FDIC, agreed to 

share losses on certain pools of assets held by 

systemically significant financial institutions 

that faced a high risk of losing market 

confidence due in large part to a portfolio of 

distressed or illiquid assets.

Automotive Industry Financing Program 

(AIFP): A TARP program under which OFS 

provided loans or equity investments in order 

to avoid a disorderly bankruptcy of one or 

more auto companies that would have posed a 

systemic risk to the country’s financial 

system.

Capital Purchase Program (CPP): A TARP 

program pursuant to which OFS invested in 

preferred equity securities and other 

securities issued by financial institutions.

Commercial Mortgage-Backed Securities 

(CMBS): A financial instrument representing 

an interest in a commercial real estate 

mortgage or a group of commercial real estate 

mortgages.

Community Development Capital Initiative 

(CDCI): A TARP program that provides lowcost capital to Community Development 

Financial Institutions to encourage lending to 

small businesses and help facilitate the flow of 

credit to individuals in underserved 

communities.

 

Community Development Financial 

Institution (CDFI): A financial institution 

that focuses on providing financial services to 

low- and moderate- income, minority and 

other underserved communities, and is 

certified by the CDFI Fund, an office within 

OFS that promotes economic revitalization 

and community development.

 

Consolidated Appropriations Act, 2016: The 

law which included provisions that (i) the 

MHA program will terminate on December 31, 

2016, except with respect to certain loan 

modification applications made before such 

date and (ii) provided Treasury authority to 

commit an additional $2.0 billion in TARP 

funds to the HHF program.

 

Debtor-In-Possession (DIP): A debtor-inpossession in U.S. bankruptcy law has filed a 

bankruptcy petition but still remains in 

possession of its property. DIP financing 

usually has priority over existing debt, equity 

and other claims.

 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act): 

The law that limited Treasury’s authority to 

purchase or guarantee troubled assets to a

maximum of $475.0 billion.

Emergency Economic Stabilization Act

(EESA): The law that created the Troubled 

Asset Relief Program (TARP).

Government Sponsored Enterprises (GSEs): 

Private corporations created by the U.S. 

Government. Fannie Mae and Freddie Mac 

are GSEs.

Hardest Hit Fund (HHF): A TARP program 

to help 18 hardest hit states, plus the District 

of Columbia, to develop locally-tailored 

programs to assist struggling homeowners in 

their communities.

 
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

62 OTHER INFORMATION

Home Affordable Modification Program 

(HAMP): A TARP program OFS established 

to help struggling, homeowners reduce their 

mortgage payments to affordable and 

sustainable levels and avoid foreclosure. 

 

Housing Finance Agencies (HFAs): Statecharted authorities established to help meet 

the affordable housing needs of the residents 

of their states. 

 

Legacy Securities: CMBS and non-agency 

RMBS issued prior to 2009 that were 

originally rated AAA or an equivalent rating 

by two or more nationally recognized 

statistical rating organizations without 

ratings enhancement and that are secured 

directly by actual mortgage loans, leases or 

other assets and not other securities.

Making Home Affordable (MHA): A 

comprehensive plan to stabilize the U.S. 

housing market and help struggling 

homeowners reduce their monthly mortgage 

payments to more affordable levels and avoid 

foreclosure. HAMP is part of MHA. 

 

Non-Agency Residential Mortgage-Backed 

Securities: RMBS that are not guaranteed or 

issued by Freddie Mac, Fannie Mae, any other 

GSE, Ginnie Mae, or a U.S. federal 

government agency.

Preferred Stock: Equity ownership that 

usually pays a fixed dividend and gives the 

holder a claim on corporate earnings superior 

to common stock owners. Preferred stock also 

has priority in the distribution of assets in the 

case of liquidation of a bankrupt company.

Public-Private Investment Program (PPIP): A 

TARP program designed to support the 

secondary market in mortgage-backed 

securities. The program is designed to 

increase the flow of credit throughout the 

economy by partnering with private investors 

to purchase Legacy Securities from financial 

institutions.

Qualifying Financial Institution (QFI): 

Private and public U.S.-controlled banks, 

savings associations, bank holding companies, 

certain savings and loan holding companies, 

and mutual organizations.

Residential Mortgage-Backed Securities 

(RMBS): A financial instrument representing 

an interest in a group of residential real estate 

mortgages.

 

Small Business Administration (SBA) 7(a) 

Securities Purchase Program: A TARP 

program under which OFS purchased 

securities backed by the guaranteed portions 

of the SBA 7(a) loans.

 

Servicer: An administrative third party that 

collects mortgage payments, handles tax and 

insurance escrows, and may even bring 

foreclosure proceedings on past due mortgages 

for institutional loan owners or originators. 

The loan servicer also generates reports for 

borrowers and mortgage owners on the 

collections. 

 

Targeted Investment Program (TIP): A TARP 

program created to stabilize the financial 

system by making investments in institutions 

that are critical to the functioning of the 

financial system.

Term Asset-Backed Securities Loan Facility 

(TALF): A program under which the Federal 

Reserve Bank of New York made term nonrecourse loans to buyers of AAA-rated AssetBacked Securities in order to stimulate 

consumer and business lending.

 

Troubled Asset Relief Program (TARP): The 

Troubled Asset Relief Program, which was 

established under EESA to stabilize the 

financial system and help prevent a systemic 

collapse.

Warrant: A financial instrument that 

represents the right, but not the obligation, to 

purchase a certain number of shares of 

common stock of a company at a fixed price.
AGENCY FINANCIAL REPORT | FISCAL YEAR 2021

OTHER INFORMATION 63

Contact Information

Department of the Treasury – Office of Financial Stability

1500 Pennsylvania Avenue NW

Washington, DC 20220

Telephone 202-622-2000 | Treasury Press Office 202-622-2960

Website Information

Treasury...........................................................................................................................home.treasury.gov

Office of Financial Stability...............................home.treasury.gov/data/troubled-assets-relief-program

Making Home Affordable Program ................................................................. makinghomeaffordable.gov

Additional References

TARP Programs...................................................home.treasury.gov/data/troubled-assets-relief-program

TARP Reports .........................................home.treasury.gov/data/troubled-assets-relief-program/reports

Financial Reports ............................................................................................................................................

home.treasury.gov/data/troubled-assets-relief-program/reports/annual-agency-financial-reports
THE DEPARTMENT OF THE TREASURY | OFFICE OF FINANCIAL STABILITY

64 OTHER INFORMATION