Freddie Mac 2008 Annual Report Download - page 278

formalized structure around assessing and validating the assumptions and conclusions pertaining to impairments and
reserve adjustments due to counterparty weaknesses or downgrades. The increased reviews, oversight and validation
by management were exercised at a sufficient level during the analysis of our December 31, 2008 consolidated
financial statements to mitigate the risk of material misstatement. We will continue our efforts related to review,
oversight and validation to fully remediate this material weakness.
•Securities Impairment Model — Our plan for remediation of this material weakness includes redesigning the data
capture process to appropriately absorb unexpected values and implementing additional monitoring controls over data
validity to ensure the model processes data exceptions appropriately following changes to the model. We have
performed extensive reviews of our non-agency securities in light of this material weakness to mitigate the risk of
material misstatement of our December 31, 2008 consolidated financial statements.
We are continuing to remediate the significant deficiencies in internal control over financial reporting previously
identified in our quarterly report on Form 10-Q for the period ended September 30, 2008. We periodically evaluate the
potential impact of existing and newly identified significant deficiencies on our financial reporting process to assess whether
they, individually or in the aggregate, have increased in severity to a material weakness.
In view of our remediation efforts through December 31, 2008, we believe that our consolidated financial statements for
the year ended December 31, 2008, have been prepared in conformity with GAAP.
ITEM 9B. OTHER INFORMATION
None.
275 Freddie Mac