oversight

Financial Audit: Capitol Preservation Fund's Fiscal Year 1996 and 1995 Financial Statements

Published by the Government Accountability Office on 1997-05-30.

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
                 Capitol Preservation
                 Fund’s Fiscal Years
                 1996 and 1995
                 Financial Statements




GAO/AIMD-97-99
      United States
GAO   General Accounting Office
      Washington, D.C. 20548

      Comptroller General
      of the United States

      B-277057

      May 30, 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 Capitol
      Preservation Fund for the fiscal years ended September 30, 1996 and 1995.
      It also discusses our (1) consideration of internal controls in conducting
      our audit and (2) evaluation of compliance with laws and regulations
      during fiscal year 1996. We conducted our audit pursuant to 40 U.S.C.
      188a-3 and in accordance with generally accepted government auditing
      standards.

      We are sending copies of this report to all members of the Capitol
      Preservation Commission, the Architect of the Capitol, and other
      interested parties. Copies will be made available to others upon request.
      This report was prepared under the direction of Robert W. Gramling,
      Director, Corporate Audits and Standards, who may be reached at
      (202) 512-9406 if you or your staffs have any questions.




      James F. Hinchman
      Acting Comptroller General
      of the United States




      Page 1                                 GAO/AIMD-97-99 Capitol Preservation Fund
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




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Page 3   GAO/AIMD-97-99 Capitol Preservation Fund
                           United States
GAO                        General Accounting Office
                           Washington, D.C. 20548

                           Accounting and Information
                           Management Division

                           B-277057

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

                           We have audited the statements of financial position of the Capitol
                           Preservation Fund as of September 30, 1996 and 1995 (as restated for
                           fiscal year 1995—see note 4), and the related statements of activities and
                           statements of cash flows for the fiscal years then ended (as restated for
                           fiscal year 1995). We found

                       •   the financial statements were reliable in all material respects,
                       •   no material weaknesses in the internal controls we tested, and
                       •   no reportable noncompliance with selected provisions of 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 Capitol Preservation Fund’s financial position as of
                           September 30, 1996 and 1995 (as restated for fiscal year 1995), and the
                           results of its activities and its cash flows for the fiscal years then ended (as
                           restated for fiscal year 1995).


                           We gained an understanding of internal controls designed to
Consideration of
Internal Controls      •   safeguard assets against loss from unauthorized acquisition, use, or
                           disposition;
                       •   assure the execution of transactions in accordance with management’s
                           authority and with laws and regulations that could have a direct and
                           material effect on the financial statements; and
                       •   properly record, process, and summarize transactions to permit the
                           preparation of reliable financial statements and to maintain accountability
                           over assets.

                           The objective of our internal control work was to determine procedures
                           for auditing the financial statements, not to express an opinion on internal
                           controls. Accordingly, we do not express such an opinion. However, for
                           the controls we tested, we found no material weaknesses in internal
                           control and its operations for the fiscal year ended September 30, 1996. A




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                           B-277057




                           material weakness is a reportable condition1 in which the design or
                           operation of the internal controls does not reduce to a relatively low level
                           the risk that losses, noncompliance, or misstatements in amounts that
                           would be material in relation to the financial statements may occur and
                           not be detected promptly by employees in the normal course of their
                           assigned duties. Our internal control work would not necessarily disclose
                           all material weaknesses.


                           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 Fund’s management is responsible for
Objectives, Scope,
and Methodology        •   preparing the Fund’s annual financial statements in conformity with
                           generally accepted accounting principles;
                       •   establishing and maintaining the Fund’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 the
                           financial statements are free of material misstatements and presented
                           fairly, in all material respects, in conformity with generally accepted
                           accounting principles. Also, we are responsible for obtaining a sufficient
                           understanding of internal controls to plan the audit and for testing
                           compliance with selected provisions of laws and regulations.

                           In order to fulfill these responsibilities, we

                       •   examined evidence supporting the amounts and disclosures in the
                           financial statements and notes;
                       •   assessed the accounting principles used by management;
                       •   evaluated the overall presentation of the financial statements;

                           1
                            Reportable conditions involve matters coming to the auditor’s attention relating to significant
                           deficiencies in the design or operation of internal controls that, in the auditor’s judgment, could
                           adversely affect an entity’s ability to (1) safeguard assets against loss from unauthorized acquisition,
                           use, or disposition, (2) ensure the execution of transactions in accordance with management’s
                           authority and with laws and regulations, and (3) properly record, process, and summarize transactions
                           to permit the preparation of financial statements and to maintain accountability for assets.



                           Page 5                                                GAO/AIMD-97-99 Capitol Preservation Fund
                          B-277057




                      •   obtained an understanding of the internal control related to safeguarding
                          assets, compliance with laws and regulations, and financial reporting; and
                      •   tested compliance with selected provisions of laws and regulations.

                          We conducted our audit from January 15, 1997, to May 19, 1997, in
                          accordance with generally accepted government auditing standards.


                          We provided a draft of our report to the Director, Financial Services,
Library of Congress       Library of Congress for review and comment. The Library of Congress
Comments                  provides financial management services for the Capitol Preservation Fund
                          including preparing the Fund’s financial statements. The Director agreed
                          with the contents of our report.




                          Jeffrey C. Steinhoff
                          Director of Planning and
                            Reporting

                          May 19, 1997




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Financial Statements


Statements of Financial Position




                                   Page 8   GAO/AIMD-97-99 Capitol Preservation Fund
                           Financial Statements




Statements of Activities




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                           Financial Statements




Statements of Cash Flows




                           Page 10                GAO/AIMD-97-99 Capitol Preservation Fund
                                    Financial Statements




Notes to the Financial Statements




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Financial Statements




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           Financial Statements




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