oversight

Financial Audit: Congressional Award Foundation's 1996 and 1995 Financial Statements

Published by the Government Accountability Office on 1997-05-15.

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

                 United States General Accounting Office

GAO              Report to the Congress




May 1997
                 FINANCIAL AUDIT
                 Congressional Award
                 Foundation’s 1996 and
                 1995 Financial
                 Statements




GAO/AIMD-97-87
      United States
GAO   General Accounting Office
      Washington, D.C. 20548

      Comptroller General
      of the United States

      B-275453

      May 15, 1997

      To the President of the Senate and the
      Speaker of the House of Representatives

      This report presents our opinion on the financial statements of the
      Congressional Award Foundation for the fiscal years ended September 30,
      1996 and 1995. These financial statements are the responsibility of the
      Congressional Award Foundation. This report also presents (1) our
      opinion on the Foundation management’s assertions regarding the
      effectiveness of its internal controls as of September 30, 1996, and (2) our
      evaluation of the Foundation’s compliance with laws and regulations
      during fiscal year 1996.

      We conducted our audits pursuant to section 8 of the Congressional
      Award Act, as amended (2 U.S.C. 807), and in accordance with generally
      accepted government auditing standards.

      We are sending copies of this report to the Chairman of the National Board
      of Directors, Congressional Award Program; the National Director,
      Congressional Award Foundation; the Chairmen and Ranking Minority
      Members of the Senate Committee on Governmental Affairs and the House
      Committee on Education and the Workforce; and other interested parties.

      This report was prepared under the direction of Robert W. Gramling,
      Director, Corporate Audits and Standards.




      James F. Hinchman
      Acting Comptroller General
      of the United States




      Page 1                            GAO/AIMD-97-87 Congressional Award Foundation
Contents



Letter                                                                                            1


Opinion Letter                                                                                    4


Financial Statements                                                                              8
                       Statements of Financial Position                                           8
                       Statements of Activities                                                   9
                       Statements of Cash Flows                                                  10
                       Notes to the Financial Statements                                         11




                       Page 2                          GAO/AIMD-97-87 Congressional Award Foundation
Page 3   GAO/AIMD-97-87 Congressional Award Foundation
                           United States
GAO                        General Accounting Office
                           Washington, D.C. 20548

                           Accounting and Information
                           Management Division

                           B-275453

                           To the President of the Senate and the
                           Speaker of the House of Representatives

                           We have audited the statements of financial position of the Congressional
                           Award Foundation as of September 30, 1996 and 1995, and the related
                           statements of activities and statements of cash flows for the fiscal years
                           then ended. We found

                       •   the financial statements were reliable in all material respects;
                       •   the Congressional Award Foundation’s management fairly stated that
                           internal controls in place on September 30, 1996, were effective in
                           safeguarding assets from material loss, assuring material compliance with
                           relevant laws and regulations, and assuring that there were no material
                           misstatements in the financial statements; and
                       •   no reportable noncompliance with laws and regulations we tested for the
                           fiscal year ended September 30, 1996.

                           The following sections provide additional detail concerning our
                           conclusions and the scope of our audit.


                           The financial statements and accompanying notes present fairly, in all
Opinion on Financial       material respects, in conformity with generally accepted accounting
Statements                 principles, the Congressional Award Foundation’s financial position as of
                           September 30, 1996 and 1995, and the results of its activities and its cash
                           flows for the fiscal years then ended.


                           We evaluated the Foundation management’s assertions about the
Opinion on                 effectiveness of its internal controls designed to
Management’s
Assertions About the   •   safeguard assets against loss from unauthorized acquisition, use, or
                           disposition;
Effectiveness of       •   assure the execution of transactions in accordance with management’s
Internal Controls          authority and with selected provisions of those laws and regulations that
                           have a direct and material effect on the financial statements of the
                           Foundation; and
                       •   properly record, process, and summarize transactions to permit the
                           preparation of reliable financial statements and to maintain accountability
                           for assets.




                           Page 4                            GAO/AIMD-97-87 Congressional Award Foundation
                           B-275453




                           Management of the Congressional Award Foundation fairly stated that
                           those controls in place on September 30, 1996, provided reasonable
                           assurance that losses, noncompliance, or misstatements material in
                           relation to the financial statements would be prevented or detected on a
                           timely basis. Management made this assertion based upon criteria
                           established under the Federal Managers’ Financial Integrity Act of 1982
                           and the Office of Management and Budget Circular A-123, Management
                           Accountability and Control.

                           Although management’s assertion regarding the effectiveness of internal
                           controls is fairly stated in all material respects based on the control
                           criteria cited above, we noted certain matters involving the Foundation’s
                           internal accounting controls and its operations. These matters, while not
                           significant, will be reported to management separately, and copies will be
                           provided to the appropriate congressional committees.



                           Our tests for compliance with selected provisions of laws and regulations
Compliance With            disclosed no instances of noncompliance that would be reportable under
Laws and Regulations       generally accepted government auditing standards. However, the objective
                           of our audit was not to provide an opinion on overall compliance with
                           laws and regulations. Accordingly, we do not express such an opinion.


                           The Foundation’s management is responsible for
Objectives, Scope,
and Methodology        •   preparing the Foundation’s annual financial statements in conformity with
                           generally accepted accounting principles;
                       •   establishing, maintaining, and assessing the Foundation’s internal control
                           to provide reasonable assurance that the internal control objectives
                           mentioned above are met; and
                       •   complying with applicable laws and regulations.

                           We are responsible for obtaining reasonable assurance about whether
                           (1) the financial statements are free of material misstatement and
                           presented fairly, in all material respects, in conformity with generally
                           accepted accounting principles and (2) management’s assertion about the
                           effectiveness of internal controls is fairly stated, in all material respects,
                           based upon the internal control criteria used by the Foundation’s
                           management in making this assertion. We are also responsible for testing
                           compliance with selected provisions of laws and regulations.



                           Page 5                             GAO/AIMD-97-87 Congressional Award Foundation
    B-275453




    In order to fulfill these responsibilities, we

•   examined, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements;
•   assessed the accounting principles used and significant estimates made by
    the Foundation’s management;
•   evaluated the overall presentation of the financial statements;
•   obtained an understanding of the Foundation’s internal controls related to
    safeguarding assets, compliance with laws and regulations, and financial
    reporting;
•   tested relevant internal controls over safeguarding, compliance, and
    financial reporting and evaluated management’s assertion about the
    effectiveness of internal controls; and
•   tested compliance with selected provisions of the Congressional Award
    Act, as amended.

    We did not evaluate all internal controls relevant to operating objectives,
    such as controls relevant to ensuring efficient operations. We limited our
    internal control testing to those controls necessary to achieve the
    objectives outlined in our opinion on management’s assertion about the
    effectiveness of internal controls. Because of inherent limitations in any
    internal control, losses, noncompliance, or misstatements may
    nevertheless occur and not be detected. We also caution that projecting
    our evaluation to future periods is subject to the risk that controls may
    become inadequate because of changes in conditions or that the degree of
    compliance with controls may deteriorate.

    We conducted our audits from November 5, 1996, to April 11, 1997. Our
    audits were conducted in accordance with generally accepted government
    auditing standards.




    Page 6                              GAO/AIMD-97-87 Congressional Award Foundation
                   B-275453




                   We provided a draft of our report to Congressional Award Foundation
Foundation         officials for their review and comment. The Foundation officials agreed
Comments and Our   with the contents of our report.
Evaluation




                   Jeffrey C. Steinhoff
                   Director of Planning and
                     Reporting

                   April 11, 1997




                   Page 7                           GAO/AIMD-97-87 Congressional Award Foundation
Financial Statements


Statements of Financial Position




                                   Page 8   GAO/AIMD-97-87 Congressional Award Foundation
                           Financial Statements




Statements of Activities




                           Page 9                 GAO/AIMD-97-87 Congressional Award Foundation
                           Financial Statements




Statements of Cash Flows




                           Page 10                GAO/AIMD-97-87 Congressional Award Foundation
                                    Financial Statements




Notes to the Financial Statements




                                    Page 11                GAO/AIMD-97-87 Congressional Award Foundation
Financial Statements




Page 12                GAO/AIMD-97-87 Congressional Award Foundation
Financial Statements




Page 13                GAO/AIMD-97-87 Congressional Award Foundation
           Financial Statements




(917771)   Page 14                GAO/AIMD-97-87 Congressional Award Foundation
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