Fannie Mae 2004 Annual Report Download - page 245

by our independent registered public accounting firm and establish policies and procedures for the engagement
of the outside auditor to provide audit and permissible non-audit services. Our independent registered public
accounting firm may not be retained to perform non-audit services specified in Section 10A(g) of the
Exchange Act.
The Audit Committee appointed Deloitte & Touche LLP as our independent registered public accounting firm
in January 2005. The Audit Committee dismissed KPMG LLP as our independent registered public accounting
firm in December 2004, after concluding that Fannie Mae’s previously filed interim and audited financial
statements and the independent auditor’s reports thereon for the periods from January 2001 through the second
quarter of 2004 should no longer be relied upon because such financial statements were prepared applying
accounting practices that did not comply with generally accepted accounting principles. Accordingly, we were
required to restate our previously reported audited consolidated financial statements for the years ended
December 31, 2003 and 2002. We also restated our previously reported December 31, 2001 consolidated
balance sheet to reflect corrected items that relate to prior periods. Deloitte & Touche audited these restated
consolidated financial statements, as well as our consolidated financial statements for the year ended
December 31, 2004.
The following table sets forth the fees paid or accrued for services provided by our independent registered
public accounting firm Deloitte & Touche for 2004 and the fees paid or accrued for services provided by our
independent registered public accounting firm KPMG LLP for 2003. During 2004, KPMG LLP reviewed our
interim financial statements for the quarters ended March 31, 2004 and June 30, 2004. KPMG LLP did not
report on our financial statements for the year ended December 31, 2004, but was in the process of auditing
the 2004 information. The fees for services provided by KPMG LLP in 2004 are not reflected in the table
below.
Description of Fees 2004 2003
For the Year Ended
December 31,
Audit fees
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $201,560,000 $ 2,721,300
Audit-related fees
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,557,850
Tax fees
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,696,957
Total fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $201,560,000 $10,976,107
(1)
For 2004, excludes fees paid or accrued for services provided by KPMG LLP totaling $6,010,604 for preliminary 2004
audit work. For 2004, amount includes fees paid to Deloitte & Touche LLP for the audit of our consolidated financial
statements for the years 2002 to 2004 as the audits occurred contemporaneously.
(2)
For 2004, excludes fees paid or accrued for services provided by KPMG LLP totaling $4,721,399 related to the
OFHEO special examination, $3,113,725 for REMIC pricing and closing letter fees, and $317,503 for REMIC payment
data validation fees. For 2003, includes fees paid or accrued for services provided by KPMG LLP totaling $4,249,600
for REMIC pricing and closing letter fees and $308,250 for REMIC payment data validation fees.
(3)
For 2004, excludes fees paid or accrued for services provided by KPMG LLP totaling $735,000 for review of tax
accounts, $3,862,254 for REMIC tax return services, and $23,500 for reimbursable financial advisory fees paid directly
to KPMG LLP by Fannie Mae on behalf of certain of our officers. For 2003, includes fees paid or accrued for services
provided by KPMG LLP totaling $3,666,957 for REMIC tax preparation and $30,000 for buy-up pool processing, and
excludes $20,900 for reimbursable financial advisory fees paid directly to KPMG LLP by Fannie Mae on behalf of cer-
tain of our officers.
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