Examination of Financial Statements of the Overseas Private Investment Corporation, Fiscal Years 1975 and 1974

GAO examined the accompanying balance sheets of the Overseas Private Investment Corporation (OPIC) for fiscal years 1974 and 1975, in accordance with generally accepted auditing standards. OPIC insures and guarantees U.S. investors against the possible risks of having their overseas investments expropriated; suffering currency losses; and the dislocations accompanying war, revolution, or insurrection. An insurance reserve of $176.5 million is held by OPIC against these eventualities. If claims exceed available reserves, OPIC will have to obtain additional funds from outside sources. Because of the many uncertainties affecting investors' claims, GAO cannot judge the adequacy of the reserve account to cover possible losses, but, otherwise, the financial statements are a fair presentation of OPIC's fiscal position.