Fannie Mae 2013 Annual Report Download - page 166

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Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Information about market risk is set forth in “MD&A—Risk Management—Market Risk Management, Including Interest
Rate Risk Management.”
Item 8. Financial Statements and Supplementary Data
Our consolidated financial statements and notes thereto are included elsewhere in this annual report on Form 10-K as
described below in “Exhibits and Financial Statement Schedules.”
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
OVERVIEW
We are required under applicable laws and regulations to maintain controls and procedures, which include disclosure controls
and procedures as well as internal control over financial reporting, as further described below.
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Disclosure controls and procedures refer to controls and other procedures designed to provide reasonable assurance that
information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the rules and forms of the SEC. Disclosure controls and
procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information
required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated
to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding our required disclosure. In designing and evaluating our disclosure controls and procedures, management
recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives, and management was required to apply its judgment in evaluating and
implementing possible controls and procedures.
Evaluation of Disclosure Controls and Procedures
As required by Rule 13a-15 under the Exchange Act, management has evaluated, with the participation of our Chief
Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as in effect as of
December 31, 2013, the end of the period covered by this report. As a result of management’s evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective at a
reasonable assurance level as of December 31, 2013 or as of the date of filing this report.
Our disclosure controls and procedures were not effective as of December 31, 2013 or as of the date of filing this report
because they did not adequately ensure the accumulation and communication to management of information known to FHFA
that is needed to meet our disclosure obligations under the federal securities laws. As a result, we were not able to rely upon
the disclosure controls and procedures that were in place as of December 31, 2013 or as of the date of this filing, and we
continue to have a material weakness in our internal control over financial reporting. This material weakness is described in
more detail below under “Management’s Report on Internal Control Over Financial Reporting—Description of Material
Weakness.” Based on discussions with FHFA and the structural nature of this material weakness, we do not expect to
remediate this material weakness while we are under conservatorship.