Executive Life Insurance was in far worse shape at the end of 1990 than it first reported, an auditor hired by California regulators has determined.

An impartial auditor examines the books of a corporate pension plan and determines that it is overfunded.

The auditor then can determine if any claims were inappropriately paid.

The auditors of the administration eventually determined that the debts amounted to €14.3bn, which was almost eight times the sum originally stated.

General Urias said his auditors had determined that there was no justification for paying about $230 million originally committed to the thousands of contracts.

This helps the auditor understand the recipient and determine whether it is likely that it does or doesn't comply with federal laws and regulations.

The auditors must determine whether the results of their tests affect their assessment.

It declared bankruptcy in 2004, three months after federal auditors determined that the institute had improperly sought grant money to cover unrelated expenses.

Yesterday's announcement comes just months after auditors determined that the Johnson Center was responsible for $1 billion in cost overruns on the initial space station work.

The auditor should also determine whether previous recommendations have been carried out.