Summary: Pursuant to a congressional request, GAO reviewed the management and operation of the U.S. Export-Import Bank's (Eximbank) Claims and Recovery Division (CRD), focusing on CRD: (1) strategy and management guidelines for its claims and recovery efforts; (2) internal control problems; and (3) operations improvements. GAO found that: (1) CRD lacks a strategy and guidelines for its recovery efforts; (2) CRD does not have a formal system for determining which claims would provide it with the greatest return; (3) CRD randomly assigns recovery claims to its staff; (4) although CRD has developed an approach for prioritizing claims and recovery efforts, it has not implemented it; (5) Eximbank could use federal claims collection standards to develop CRD management; (6) CRD internal control weaknesses include inaccurate recordkeeping and databases, and an inadequate management response mechanism for staff concerns about waste, fraud, abuse, and mismanagement, and untranslated foreign language documents that hinder the claims recovery process; (7) CRD is addressing systemic problems by developing a portfolio approach to claims case assignment and management, revising its policy and procedures manual, closing out old uncollectible claims, developing a formal employee training program, and developing cost data on its recovery efforts; and (8) CRD corrective actions are not sufficient to resolve all problems and weaknesses.
