Unmodified Audit Shows Sound Risk and Financial Management in Past Fiscal Year, Report Reflects Total Authorizations, Steady U.S. Small Business Support During COVID-19 Pandemic
FOR IMMEDIATE RELEASE November 25, 2020
Office of Communications (202) 565-3204
WASHINGTON – The Export-Import Bank of the United States (EXIM) has publicly released its audited fiscal year (FY) 2020 Agency Management Report, which provides the reporting of the agency’s authorizations during FY 2020 and its financial condition as of the close of the fiscal year on September 30, 2020.
EXIM received an unmodified or “clean” audit opinion on its FY 2020 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’s FY 2020 Agency Management Report underscores EXIM’s continued focus on strong internal controls over the agency’s financial operations over the past year. This clean audit shows that EXIM has been successful in maintaining these controls and our agency committed to providing transparency with respect to the agency’s financial condition and protecting the U.S. taxpayer. It also is important to note that, again in FY 2020, EXIM maintained a conservative level of reserves on its credit portfolio,” said EXIM President and Chairman Kimberly A. Reed.
EXIM began implementing a formal internal controls program over financial reporting in 2017.
The FY 2020 Agency Management Report will be incorporated into EXIM’s forthcoming full FY 2020 Annual Report, which will contain additional required reporting to Congress and other year-end review for the agency’s stakeholders.
As of the FY 2020 year-end on September 30, 2020, EXIM’s quarterly default rate was 0.819 percent, well under the “below 2 percent” cap established in EXIM’s Charter in 2015.
The Agency Management Report provides EXIM’s FY 2020 total authorizations and detailed breakdowns of support. The report shows that the agency’s total authorizations were somewhat lower in FY 2020 due to the effects of the COVID-19 pandemic and the global economic slowdown that affected approximately two-thirds of the fiscal year. However, EXIM’s small business support remained relatively steady in FY 2020.
The report also provided information on EXIM’s fulfillment of its Congressional mandates to support U.S. small businesses, U.S. exports to sub-Saharan Africa, and U.S. export of environmentally beneficial goods and services, as well as an update on the new Program on China and Transformational Exports that was mandated by Congress in the agency’s historic 2019 reauthorization.
Highlights of EXIM FY 2020 authorizations include the following:
- EXIM authorized $5.4 billion of loan guarantees, export credit insurance, and direct loans in support of an estimated $10.8 billion of U.S. export sales.
- EXIM’s small business authorizations totaled more than $2.0 billion, representing 38.6 percent of total authorizations—exceeding the agency’s charter requirement of 25 percent. Transactions that directly benefited small business exporters were nearly 89 percent of total transactions.
- EXIM authorized $335.4 million for minority- and women-owned businesses.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.