Financial Audit:

Export-Import Bank's 1986 and 1985 Financial Statements

AFMD-87-61: Published: Aug 31, 1987. Publicly Released: Aug 31, 1987.

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Pursuant to a legislative requirement, GAO examined the financial records and internal accounting controls of the Export-Import Bank of the United States (Eximbank) for the years ended September 30, 1986, and 1985.

GAO found that: (1) Eximbank's records did not show any provision for anticipated losses due to defaults in loan payments; (2) such provision would have decreased its total deficit by about $5 billion; (3) Eximbank plans to generate about $5.2 billion in loan sales through fiscal year (FY) 1992, and has received an estimated $848 million of its projected $1.5 billion loan sales for 1987; (4) Eximbank's reliance on the Foreign Credit Insurance Association (FCIA) resulted in weak internal control procedures because FCIA recordkeeping and data control systems were inaccurate; and (5) the statements did not present fairly the financial position of Eximbank as of September 30, 1986, and 1985, or the results of its operations and changes in its financial position for the years then ended, in conformity with generally accepted accounting principles.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: The internal accounting control system weaknesses noted in the GAO FY 1986 report were corrected during FY 1987.

    Recommendation: The Chairman should direct Eximbank's controller to monitor and report on FCIA progress toward resolving its internal accounting control system weaknesses, including completing and implementing its new computer systems, to ensure financial information is accurately processed by FCIA and correctly reported to Eximbank for inclusion in its financial statements.

    Agency Affected: Export-Import Bank of the United States

 

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