Financial Audit:

Export-Import Bank's 1986 and 1985 Financial Statements

AFMD-87-61, Aug 31, 1987

Contact:

Robert W. Gramling
(202) 275-9406
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

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.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendation for Executive Action

    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

    Status: Closed - Implemented

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