Fannie Mae 2009 Annual Report Download - page 199

requirements definition, and systems and user-acceptance testing were not adequate to prevent or identify
errors that affected (a) the identification of loan populations and (b) the estimation of cash flows. As a
result, incorrect data and assumptions were initially used in accounting for the provision for credit losses
and for other-than-temporary impairment on private-label mortgage-related securities.
These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied
in our audit of the consolidated financial statements as of and for the year ended December 31, 2009, of the
Company and this report does not affect our report on such financial statements.
In our opinion, because of the effect of the material weaknesses identified above on the achievement of the
objectives of the control criteria, the Company has not maintained effective internal control over financial
reporting as of December 31, 2009, based on the criteria established in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the consolidated financial statements as of and for the year ended December 31, 2009, of the
Company and our report dated February 26, 2010 expressed an unqualified opinion on those financial
statements and included explanatory paragraphs regarding the Company’s adoption of new accounting
standards and the Company’s dependence upon the continued support of the United States Government,
various United States Government agencies and the Company’s conservator and regulator, the Federal Housing
Finance Agency.
/s/ DELOITTE &TOUCHE LLP
Washington, DC
February 26, 2010
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