Policymakers and program managers are continually seeking ways to improve accountability in achieving an entity's mission. A key factor in improving accountability in achieving an entity's mission is to implement an effective internal control system. An effective internal control system helps an entity adapt to shifting environments, evolving demands, changing risks, and new priorities. As programs change and entities strive to improve operational processes and implement new technology, management continually evaluates its internal control system so that it is effective and updated when necessary. Section 3512 (c) and (d) of Title 31 of the United States Code (commonly known as the Federal Managers' Financial Integrity Act (FMFIA)) requires the Comptroller General to issue standards for internal control in the federal government.

A hearing to discuss the General Accounting Office (GAO) audit of the Federal Housing Finance Board, which is the safety & soundness & mission regulator of the Federal Home Loan Bank. Witnesses: Richard S. Carnell, Assist. Sec. of the Treasury for Financial Institutions; Nancy R. Kingsbury, Acting Assistant Comptroller General, General Government Programs, GAO, accompanied by Thomas J. McCool, Dir., Financial Institutions & Markets; & Bruce A. Morrison, Chairman, Federal Housing Finance Board. Also includes a prepared statement submitted by Federal Housing Finance Board Director J. Timothy O'Neill.