Examination of Financial Statements of the Export-Import Bank of the United States for Fiscal Year Ended September 30, 1977
ID-78-34: Published: May 3, 1978. Publicly Released: May 3, 1978.
- Full Report:
The statement of financial condition of the Export-Import Bank of the United States (Eximbank) as of September 30, 1977, and the statements of income and analysis of reserve for contingencies and defaults and changes in financial position for the year then ended and for the 3-month period ending September 30, 1976, were examined. The examination was conducted in accordance with generally accepted auditing standards and included such tests of the accounting records and other auditing procedures as considered necessary.
Eximbank normally deducts payments on guaranty and insurance claims when computing net income. This practice was modified in 1977 when unusually large guaranty payments were required on defaulted commercial loans to Zaire. Eximbank necessarily states its net income before providing for losses, but it retains accumulated net income after dividends as a reserve for such losses. The reserve is increasing while the total amount at risk is decreasing. However, the amount at risk on delinquent and rescheduled loans, including commercial loans purchased and subject to purchase under guarantee contracts in Zaire, has been increasing. Except for the amount reserved for contingencies and defaults, the statements present fairly the financial position of the Eximbank at September 30, 1977, and June 30, 1976, and results of operations and changes in financial position in conformity with generally accepted accounting principles applied on a consistent basis.