Observations on Financial Statement Disclosure and Internal Accounting Control
ID-83-39: Published: Apr 15, 1983. Publicly Released: Apr 15, 1983.
- Full Report:
GAO issued a second report on the Overseas Private Investment Corporation's fiscal year 1982 financial statements.
GAO found that the OPIC financial statements and notes should have provided greater disclosure. OPIC did not disclose the composition of the finance receivables and maturities of the Direct Investment Fund program, and GAO encouraged greater disclosure in this area, consistent with the risks which OPIC deems acceptable. GAO also found that interest received from investments in Treasury securities was not separately identified and pension plan information was not disclosed as required. In addition, GAO found that the internal accounting control system needs improvement because: (1) the OPIC administrative policies and procedures were not adequately defined or documented; (2) adjustment data entering the accounting system should have been better supported; and (3) administrative practices lacked sufficient oversight. However, GAO did not regard the shortcomings in disclosure and internal control as materially affecting the fairness of the fiscal year 1982 financial statements. GAO determined that OPIC did comply with existing laws and regulations, including provisions of the Overseas Private Investment Corporation Amendments Act and congressionally established spending limits for certain purposes.