Review of the Federal Crop Insurance Corporation's Financial Statements for the Year Ended September 30, 1981

GAO reviewed the Federal Crop Insurance Corporation's (FCIC) statement of financial position as of September 30, 1981, and the related statements of income and expense and changes in financial position for the year then ended.

GAO found that significant accounting and financial reporting policy changes were made as a result of its review. In prior years' financial statements, GAO found that: (1) insurance premium revenue inappropriately included amounts earned in more than one fiscal year (FY) and excluded other amounts that should have been included; (2) losses on claims inappropriately included claims resulting from insurance coverage for more than one FY and excluded other claims that should have been included; and (3) expended and unexpended appropriations were both reported in the statement of financial position. In the FY 1981 financial statements, GAO found that the following accounting and financial reporting changes had occurred: (1) insurance premium revenue included amounts earned in FY 1981 and excluded in any other FY; (2) losses on claims included claims resulting from FY 1981 insurance coverage only; and (3) expended appropriations were reported in the statement of income and expense, and obligated but unexpended appropriations were reported in the statement of financial position.