United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-06-17 monographic deposited born digital 158 p. GA 1.13:GGD-96-128 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-128 P0b002ee180390ecc f:gg96128 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GGD-96-128 machine generated eng fdlp REPORT GAOREPORTS-GGD-96-128 GGD-96-128 Federal reserve banks Financial institutions Administrative costs Cost control Federal agency reorganization Strategic information systems planning Internal controls Bank examination Banking regulation Monetary policies International Monetary Fund Exchange Stabilization Fund Gramm-Rudman Social Security Program Federal Reserve Board Retirement System Civil Service Retirement System Federal Employees Retirement System FEDNET Federal Reserve Financial Examination Program Chapter Report GGD

Pursuant to a congressional request, GAO reviewed the operations of the Federal Reserve System, focusing on: (1) its finances and levels of spending; (2) areas where spending could be reduced; and (3) actions the Federal Reserve could take to meet future challenges in systemwide management.<p/>GAO found that: (1) Federal Reserve operating expenses increased from $1.36 billion in 1988 to $2 billion in 1994; (2) the most significant operating cost increases were for bank supervision and regulation, personnel pay and benefits, and extensive modernization and consolidation of information systems; (3) operating costs vary among reserve banks because the Federal Reserve has not established consistent policies; (4) the Federal Reserve could reduce its personnel benefits and travel-related reimbursements, and realign its contracting and procurement practices; (5) a reduction or elimination of the Federal Reserve surplus account, which increased from $2.1 billion in 1988 to $3.7 billion in 1994, would increase federal budgetary receipts in the year that the reduction or elimination occurs; (6) major developments such as increased competition from private-sector suppliers, use of electronic banking, and consolidation of the banking industry, are likely to affect the Federal Reserve's operations, future role, and management structures; and (7) the Federal Reserve must eliminate the weaknesses in its planning, budgeting, oversight, and audit processes that impede its cost control efforts. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-128/html/GAOREPORTS-GGD-96-128.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-128/pdf/GAOREPORTS-GGD-96-128.pdf GAO/GGD-96-128 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-128 Chapter Report GAO/GGD-96-128; Federal Reserve System: Current and Future Challenges Require Systemwide Attention; Federal reserve banks Financial institutions Administrative costs Cost control Federal agency reorganization Strategic information systems planning Internal controls Bank examination Banking regulation Monetary policies International Monetary Fund Exchange Stabilization Fund Gramm-Rudman Social Security Program Federal Reserve Board Retirement System Civil Service Retirement System Federal Employees Retirement System FEDNET Federal Reserve Financial Examination Program Title 5 Section 5313 Title 5 Section 5314 5 U.S.C. 5313 5 U.S.C. 5314 Title 41 Section 351et seq. 41 U.S.C. 351et seq. Public Law 99-550 Public Law 101-509