oversight

World Cup USA 1994 Commemorative Coin Program

Published by the Government Accountability Office on 1997-07-18.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

       United States
GA!0   General Accounting Office
       Wa&iIlgton, D.C. 20548

       Accounting and Information
       Management Division

       B-276274


       July 18, 1997

       The Honorable Alfonse M. D’Amato
       Chairman
       The Honorable Paul S. Sarbanes
       Ranking Minority Member
       Committee on Banking, Housing, and Urban Affairs
       United States Senate

       The Honorable James A. Leach
       Chairman
       The Honorable Henry B. Gonzalez
       Ranking Minority Member
       Committee on Banking and Financial Services
       House of Representatives


       Subject:   World Cup USA 1994 Commemorative Coin Program

       Section 303 of Public Law 103-186required us to audit the use of
       commemorative coin surcharge proceeds received by World Cup USA 1994, Inc.,
       the sponsor of the 1994 World Cup soccer games. Public Law 102-281,the
       World Cup USA 1994 Commemorative Coin Act, required that World Cup USA
       transfer 10 percent of the surcharge proceeds it received to the U.S. Soccer
       Federation Foundation, Inc., to be distributed to organizations for their use in
       awarding college scholarships to qualified students, and to use the remaining 90
       percent of the surcharge proceeds to organize and stage the World Cup soccer
       games.

       World Cup USA’s financial statements were audited through December 1994 by
       an independent public accounting fkm. Those statements showed total
       revenues from all sources of about $386 million and total expenses of about
       $347 million related to organizing and staging the World Cup soccer games. A
       World Cup USA official informed us that the intention is for all remaining funds
       to be transferred to the Foundation after World Cup USA pays any additional
       expenses and is dissolved.



                                                   GAO/AND-97-116R World Cup USA
  B-276274
  We determined that World Cup USA received about $9.3 million in final
  surcharge proceeds and that it transferred about $930,000,10 percent, of the
  surcharge proceeds to the Foundation. We further determined that the
  Foundation provided those funds to three separate organizations which either
  plan to establish scholarship endowments, or have awarded the scholarships
  directly to qualified students.

  World Cup USA established a variety of accounts to record its expenses, but
  was not required to, and did not, separately account for its use of surcharge
  proceeds, except for the about $930,000in scholarship funds and about $340,000
  in administrative expenses related to marketing and selling commemorative
  coins. Instead, World Cup USA combined surcharge proceeds with other
  revenue and charged expenses against the combined revenue account.
  Accordingly, neither World Cup USA nor we could determine specifically how
  World Cup USA applied the remainder of about $8 million in surcharge
  proceeds ($9.3 million less about $930,000in scholarships and about $340,000in
  administrative expenses) in organizing and staging the World Cup soccer games.
  Section 5134 of Title 31, United States Code, as amended by Public Law 104-208,
  addressed this issue with provisions that now require future coin surcharge
  recipients to (1) separately account for the expenditure of coin surcharge    .
  proceeds and (2) obtain annual f7nancia.laudits by an independent public
  accountig iirm until all surcharge proceeds are expended or placed in trust.’

  In conducting our work, we obtained direct confh-mations from the U.S. Mint of
. the amount of surcharge proceeds transferred to World Cup USA We also
  reviewed World Cup USA’s accounting for the surcharge proceeds, traced to
  source documents certain transactions related to administrative expenses for
  marketing and selling commemorative coins, and verified that such expenses
  related to organizing and staging the World Cup games. Further, we traced the
  scholarship transfers to source documents and verified that such transfers were
  planned to be used to establish scholarship endowments, or were used to award
  scholarships directly to qualified students. At the conclusion of our work, we
  provided a draft of this letter to the Chairman and Chief Executive Officer of
  World Cup USA 1994 for comment and he had no comments. Our audit was
  performed from December 1996 to March 1997 in accordance with generally
  accepted government auditing standards.




   ‘Section 529 of the Treasury, Postal Service, and General Government
   Appropriations Act, 1997, as enacted by Section 1OlQ of Public Law 104208,
   the Omnibus Consolidated Appropriations Act, 1997, repealed section 303 of
   Public Law 103-186,effective September 30, 1996.

   2                                         GAO/AIMD-97-116R World Cup USA
E!-276274
Copies of this letter are being sent to interested parties and w-ill be made
available to others on request. Please contact me at (202) 512-9489if you or
your staffs have any questions about this letter.


+JwY@
 David L. Clark
 Director, Audit Oversight
  and Liaison




 (911736)

3                                          GAO/AIMD-97-116R World Cup USA
.‘ .
.. .




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