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 .‘ . .. . Orderinn Information The first copy of each GAO report and testimony is free. Additional copies are $2 each. Orders should be sent to the following address, accompanied by a check or money order made out to the Superintendent of Documents, when necessary. VISA and MasterCard credit cards are accepted, also. Orders for 100 or more copies to be mailed to a single address are discounted 25 percent. Orders by maik U.S. General Accounting Oftice P.O. Box 6016 Gaithersbnrg, MD 20884-6015 or visit: Room 1100 700 4th St. NW (corner of 4th and G Sts. NW) U.S. General Accounting Oflice Washington, DC Orders may also be placed by cal&tg (202) 612-6000 or by nsing fax number (301) 258-4066, or TDD (301) 413-0006. Each $ay, GAO issues a list of newly available reports and testimony. 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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)