Fannie Mae 2006 Annual Report Download - page 182

Further, during 2007, we continue to enhance the financial statement preparation and reporting by
developing enhanced data sourcing and business processes to enable a sustainable, repeatable financial
close and reporting process. We continue to identify and communicate requirements earlier, while
ensuring that our systems have adequate controls and documentation prior to implementation. We have
also provided detailed training on cash flow statement and disclosure preparation. Additionally, we are
implementing additional analytics to facilitate a more thorough and timely review of the results of
operations.
•Disclosure Controls and Procedures
While we have made progress toward achieving effectiveness at a reasonable assurance level in our
disclosure controls and procedures, as discussed under “Evaluation of Disclosure Controls and
Procedures” above, management believes that this material weakness will not be remediated until we are
able to file required reports with the SEC and the NYSE on a timely basis and have remediated all
material weaknesses.
Access Controls for Information Technology Applications and Infrastructure
Although we have not yet remediated this material weakness, as of the date of this filing, we designed and
implemented procedures and technology to control access to all of the applications that are within all
significant financial reporting processes in August 2006. Such procedures include standard request, review and
approval controls over any addition or deletion to system access. In addition, we perform regular, periodic
monitoring of authorized users designed to ensure that only authorized users have access to systems and that
such access is commensurate with current job responsibilities. We also implemented additional procedures to
monitor our platforms and databases, with corresponding escalation and review of potential incidents.
We are further standardizing and automating the process to add or remove a user’s access to applications that
are material to our financial reporting process. In addition, we are improving automation of the workflow for
requesting, approving, granting, revoking and reviewing access privileges on technology platforms that support
applications that are material to our financial reporting process.
Multifamily Lender Loss Sharing Modifications
Although we have not yet remediated this material weakness, as of the date of this filing, we are
implementing independent validation controls during 2007 to provide verification of recourse data associated
with multifamily loans and deals with product characteristics and lender agreements. Further, we have
redesigned our processes and controls for monitoring changes to contractual arrangements, and updating and
validating such changes in our systems.
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