Examination of Financial Statements of the Government National Mortgage Association for Fiscal Year 1979

The Government National Mortgage Association (GNMA), a Government corporation within the Department of Housing and Urban Development, operates in the mortgage financing market. Its mortgage activities are handled primarily through servicing agreements with the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. GAO examined the statements of financial condition of GNMA as of September 30, 1979, and the related statements of income, expenses, and retained earnings and changes in financial position for the year then ended. The examination included such tests of accounting records and other such auditing procedures as considered necessary in the circumstances. The financial statements presented fairly the financial position of GNMA at September 30, 1979, and the results of its operations and changes in its financial position in conformity with generally accepted accounting principles applied on a consistent basis.