In accordance with the Government Corporation Control Act as amended (31 U.S.C. 9105), the Office of Inspector General engaged the independent certified public accounting firm of Clifton Gunderson LLP (CG) to audit the fiscal years 2011 financial statements of the Government National Mortgage Association (Ginnie Mae). The contract required that the audit be performed according to Generally Accepted Government Auditing Standards (GAGAS). Ginnie Mae fiscal year 2010 financial statements were audited by other auditors; whose report dated November 5, 2010 expressed an unqualified opinion on those financial statements.

CG is responsible for the attached auditors’ report dated November 2, 2011 and the conclusions expressed in the report. Accordingly, we do not express an opinion on Ginnie Mae’s financial statements or conclusions on Ginnie Mae’s internal controls or compliance with laws and regulations and government-wide policies.

This report includes both the Independent Auditors’ Report and Ginnie Mae’s principal financial statements. Under Federal Accounting Standards Advisory Board (FASAB) standards, a general-purpose federal financial report should include as required supplementary information (RSI) a section devoted to Management’s Discussion and Analysis (MD&A) of the financial statements and related information. The MD&A is not included with this report. Ginnie Mae plans to separately publish an annual report for fiscal year 2011 that conforms to FASAB standards.

CG report on internal control identified certain deficiencies in internal control over financial reporting that they consider to be significant deficiencies. In addition, within 60 days of this report, CG expects to issue a separate letter to management dated November 2, 2011 regarding other matters that came to its attention during the audit.