Section 17 of the Federal Deposit Insurance Act, as amended, requires the Government Accountability Office (“GAO”) to annually audit the financial statements of the Deposit Insurance Fund (“DIF”) and the Federal Savings and Loan Insurance Corporation Resolution Fund (“FRF”).  The GAO concluded that the Federal Deposit Insurance Corporation (“FDIC”) fairly presented, in all material respects, the 2010 and 2009 financial statements for the two funds. The GAO also concluded that the FDIC had effective internal control over financial reporting. Further, GAO did not find any reportable instances of noncompliance with provisions of the laws and regulations it tested.