Audit of Eximbank's Fiscal Year 1975 Financial Statements

ID-76-50: Published: Mar 11, 1976. Publicly Released: Mar 11, 1976.

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An audit was made of the Export-Import Bank's (Eximbank) fiscal year 1975 statements. The following areas were covered: long-range automatic data processing (ADP) plan, need for offsite storage facilities and disaster recovery plan, potential for reducing interest expense, and need for internal audit staff.

A steering committee with the active participation of top management and user management is a necessary prerequisite to preparing a long-range ADP plan to include: objectives; manpower requirements, personnel responsible for system development, programming, testing, and data conversion; and estimated completion dates for segments of development. Eximbank does not maintain offsite storage facilities for backup computer data files and computer programs, and all source documents and computer files are at the Bank's headquarters. A fire or other disaster could present problems for the continued day-to-day operation of Eximbank. Eximbank is incurring unnecessary interest expense due to the time lapse between the deposit of obligor loan payments in commercial banks and the time Eximbank becomes aware the funds are available and can use them to meet loan commitments or to reduce borrowings.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: An ADP steering committee should be established to initiate, guide, and review Eximbank's data processing needs. A recovery plan should be developed and responsibilities should be assigned for maintaining the recovery procedures. It is essential that the necessary materials, such as data files, programs, supporting software, and operating instructions, be identified and stored in an offsite location physically removed from the Bank itself. Eximbank should take appropriate followup action to insure that commercial banks are complying with existing instructions for the timely transfer of funds and explore other methods of reducing the time lapse, such as direct deposit. Eximbank should establish an internal audit staff to give management a useful means of gathering timely information needed for decisionmaking, especially if there is an audit of external Bank operations by the Foreign Credit Insurance Association.

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