TABLE OF CONTENTS

EXECUTIVE SUMMARY page I-5


BACKGROUND page I-6


RESULTS OF AUDIT page I-11
Control Activities for Qualifying PCIs Were Evolving page I-11
Evidence of Approvals and Documentation Supporting Reviews and Approvals Were Present, But Varied Among the Applications page I-11
Recommendation I-13
Observation: The FDIC Has Taken Steps to Address the SOP's Six-Month Review Requirement, But a More Thorough Review Presented to the Board May Be Warranted page I-14


APPENDIX I - OBJECTIVE, SCOPE, AND METHODOLOGY page I-15


APPENDIX II - GLOSSARY OF TERMS page I-18


APPENDIX III - ACRONYMS USED IN THE REPORT page I-20


TABLES
Table 1: Deposit Insurance Applications Processed by RMS -- January 2005 to March 2011 page I-6
Table 2: Status of Qualification Activities for PCIs as of April 21, 2011 page I-8
Table 3: Applications Presented at the January 7, 2010 Meeting and Results page I-10
Table 4: Summary of PCI Samples for Full Testing page I-17
Table 5: Summary of PCI Samples for Limited Testing page I-17








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