Opinion on FY 1977 Financial Statements of the Overseas Private Investment Corporation
ID-78-12: Published: Jan 16, 1978. Publicly Released: Dec 3, 1982.
- Full Report:
The balance sheet of the Overseas Private Investment Corporation (OPIC) as of September 30, 1977, and related statements of income, changes in capital and reserves, and changes in financial position for the year then ended and the 3 months ended September 30, 1976, were examined pursuant to the Government Corporation Control Act and in accordance with generally accepted auditing standards.
The Corporation insures and guarantees U.S. investors against loss of their overseas investments due to expropriation, currency inconvertibility, and war, revolution, or insurrection. As of September 30, 1977, the Corporation's insurance reserve for such losses amounted to $229.9 million. However, potential charges against this reserve for claims filed totaled $302.3 million: direct liabilities related to claim settlements (3.1 million), claim settlement guarantees ($206.2 million), pending claims ($13.0 million), and unresolved disputed claims ($80.0 million). During fiscal year 1977, the Corporation paid $36 million on its direct liabilities related to claim settlements without reducing its insurance reserve; the payment was made from the proceeds of Chilean notes sold with recourse to the Federal Financing Bank. Except for the adequacy of the amount reserved for losses, the financial statements present fairly the financial position of OPIC at June 30, 1976, and September 30, 1977, and results of operations, changes in capital and reserves, and changes in financial position in conformity with generally accepted accounting principles.