Opinion on Fiscal Year 1976 Financial Statements of Overseas Private Investment Corporation
ID-76-89: Published: Oct 1, 1976. Publicly Released: Oct 1, 1976.
- Full Report:
An examination was performed of the balance sheet and related statements of the Overseas Private Investment Corporation as of June 30, 1976.
The Corporations's insurance reserve amounted to $204.7 million to cover specified losses by United States overseas investors. Potential charges against this reserve for claims filed totaled $395.5 million. The United States Government is obligated by legislation to guaranty obligations of the Overseas Private Investment Corporation. If claim settlements exceed reserves, the Corporation is required to borrow from the Treasury or request supplementary funds from Congress. During fiscal year 1976, the Corporation transferred $10 million from retained earnings to the Direct Investment Fund, thus diminishing the amount available for the insurance and guaranty reserves. Because of uncertainties affecting claims and liabilities, no opinion was expressed on the adequacy of reserves. Except for reserves, the statements were found to be fair and in conformity with accepted accounting principles.