EXIM Releases Audited 2019 Agency Management Report
Agency makes public FY 2019 Authorizations and Report on Financial Condition
Washington, D.C. – The Export-Import Bank of the United States (EXIM) today publicly released its audited fiscal year (FY) 2019 Agency Management Report, which provides the reporting of the agency’s authorizations during FY 2019 and its financial condition as of the close of the fiscal year on September 30, 2019.
EXIM received an unmodified or “clean” audit opinion on its FY 2019 financial statements from KPMG, an independent, external auditor. KPMG noted no material weaknesses or significant deficiencies in the financial statements or controls over financial reporting. An unmodified opinion is the best opinion that an auditor can provide to a government agency.
EXIM’s audit was also overseen by the Office of Inspector General, which monitors EXIM’s operations for risks of fraud, waste, and abuse, and functions independently of the agency.
“EXIM has continued its practice of strong internal controls over the agency’s operations in FY 2019. This audit confirms our commitment to these controls and to transparency with respect to the agency’s financial condition. I am also pleased to say that EXIM continues to maintain a conservative level of reserves on its credit portfolio,” said EXIM President and Chairman Kimberly A. Reed.
“I want to assure the American taxpayers that I am dedicated to ensuring that EXIM will make even further progress in improving and implementing best practices in risk management and internal controls over the next year,” Chairman Reed added. EXIM began implementing a formal internal controls program over financial reporting in 2017.
The FY 2019 Agency Management Report will be incorporated into EXIM’s full FY 2019 Annual Report, which will contain additional required reporting to Congress and other year-end review for the agency’s stakeholders. The annual report will be posted in early 2020.
Today at EXIM, Chairman Reed also convened the quarterly meeting of the agency’s Risk Management Committee in which senior staff briefed the board of directors on the creditworthiness of EXIM’s portfolio by region and the internal controls put in place to mitigate the risks of doing business in those markets.
Announced at the meeting was EXIM quarterly default rate—0.497 percent as of September 30, 2019—less than half of one percent and well under the “below 2 percent” cap established in EXIM’s charter in 2015.
Highlights of EXIM’s FY 2019 authorizations include the following:
- In FY 2019, EXIM authorized $8.2 billion of loan guarantees, export credit insurance, and direct loans in support of an estimated $9 billion of U.S. export sales.
- U.S. export sales backed by EXIM in FY 2019 supported an estimated 34,000 U.S. jobs.
- In FY 2019, EXIM’s small business authorizations totaled nearly $2.3 million, representing 27.5 percent of total authorizations—exceeding the agency’s charter requirement of 25 percent. Transactions that directly benefited small business exporters were more than 89 percent of total transactions.
- EXIM authorized $440.6 million for minority- and women-owned businesses in FY 2019.