oversight

Financial Audit: Capitol Preservation Fund's Fiscal Years 2002 and 2001 Financial Statements

Published by the Government Accountability Office on 2003-06-13.

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

             United States General Accounting Office

GAO          Report to the Congress




June 2003
             FINANCIAL AUDIT
             Capitol Preservation
             Fund’s Fiscal Years
             2002 and 2001
             Financial Statements




GAO-03-822
             a
Contents



Letter                                                                                                            1


Auditor’s Report                                                                                                  2
                       Opinion on Financial Statements                                                            2
                       Consideration of Internal Control                                                          2
                       Compliance with Laws and Regulations                                                       3
                       Objectives, Scope, and Methodology                                                         3
                       Commission Comments                                                                        5


Financial Statements                                                                                              6
                       Statements of Financial Position                                                           6
                       Statements of Activities                                                                   7
                       Statements of Cash Flows                                                                   8
                       Notes to Financial Statements                                                              9




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                       Page i                                              GAO-03-822 Capitol Preservation Fund
A
United States General Accounting Office
Washington, D.C. 20548



                                    June 13, 2003                                                                   Lert




                                    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 (the Fund) for the fiscal years ended September 30,
                                    2002, and 2001. It also discusses our consideration of the Fund’s internal
                                    control and our tests of compliance with laws and regulations during fiscal
                                    year 2002. We conducted our audit pursuant to 2 U.S.C. 2084 and in
                                    accordance with U.S. generally accepted government auditing standards.
                                    We appreciate the cooperation and assistance of the Office of the Secretary
                                    of the Senate, the Office of the Clerk of the House of Representatives, and
                                    the staffs of the Architect of the Capitol and the Library of Congress during
                                    our audit.

                                    We are sending copies of this report to the members of the Capitol
                                    Preservation Commission; the Honorable Emily J. Reynolds, Secretary of
                                    the Senate; the Honorable Jeffrey T. Trandahl, Clerk of the House of
                                    Representatives; the Honorable Alan M. Hantman, Architect of the Capitol;
                                    the Honorable James H. Billington, Librarian of Congress; and other
                                    interested parties. This report will also be available at no charge on the
                                    GAO Web site at http://www.gao.gov.

                                    If you or your staff have any questions concerning this report, please
                                    contact me at (202) 512-9406 or Shirley Abel, Assistant Director, at (202)
                                    512-9516. You can also reach us by e-mail at franzelj@gao.gov or
                                    abels@gao.gov. Key contributors to this report were David Merrill and Joel
                                    Rodriguez.




                                    Jeanette M. Franzel
                                    Director
                                    Financial Management and Assurance




                                    Page 1                                      GAO-03-822 Capitol Preservation Fund
A
United States General Accounting Office
Washington, D.C. 20548



                                    To the Members of the Capitol Preservation Commission                                         AR
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                                    We have audited the statements of financial position of the Capitol
                                    Preservation Fund (the Fund) as of September 30, 2002, and 2001, and the
                                    related statements of activities and statements of cash flows for the fiscal
                                    years then ended. We found

                                    • the financial statements are presented fairly, in all material respects, in
                                      conformity with U.S. generally accepted accounting principles;

                                    • no material weaknesses in internal control over financial reporting
                                      (including safeguarding assets) and compliance with laws and
                                      regulations; and

                                    • no reportable noncompliance with the provisions of laws and
                                      regulations we tested.

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



Opinion on Financial                The financial statements and accompanying notes present fairly, in all
                                    material respects, in conformity with U.S. generally accepted accounting
Statements                          principles, the Capitol Preservation Fund’s financial position as of
                                    September 30, 2002, and 2001, and the results of its activities and its cash
                                    flows for the fiscal years then ended.



Consideration of                    In planning and performing our audit of the Fund’s fiscal year 2002 financial
                                    statements, we considered the Fund’s internal control over financial
Internal Control                    reporting and compliance.1 We did this to determine our procedures for
                                    auditing the financial statements, not to express an opinion on internal
                                    control over financial reporting and compliance. Accordingly, we do not


                                    1
                                      The objectives of financial reporting control are to provide reasonable assurance that
                                    transactions are properly recorded, processed, and summarized to permit the preparation of
                                    the financial statements in conformity with U.S. generally accepted accounting principles,
                                    and assets are safeguarded against loss from unauthorized acquisition, use, or disposition.
                                    The objective of compliance control is to provide reasonable assurance that transactions
                                    are executed in accordance with laws governing the use of budget authority and other laws
                                    and regulations that could have a direct and material effect on the financial statements.




                                    Page 2                                              GAO-03-822 Capitol Preservation Fund
                         express an opinion on internal control. However, for the controls we
                         tested, we found no material weaknesses in internal controls over financial
                         reporting (including safeguarding assets) and compliance. A material
                         weakness is a condition in which the design or operation of internal control
                         does not reduce to a relatively low level the risk that errors, fraud, or
                         noncompliance 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 performing their duties. Our consideration of
                         internal control would not necessarily disclose all material weaknesses.



Compliance with Laws     Our tests for compliance with selected provisions of laws and regulations
                         disclosed no instances of noncompliance that would be reportable under
and Regulations          U.S. 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.



Objectives, Scope, and   The management of the Capitol Preservation Commission is responsible
                         for
Methodology
                         • preparing the Fund’s financial statements in conformity with U.S.
                           generally accepted accounting principles;

                         • establishing, maintaining, and assessing internal control to provide
                           reasonable assurance that the objectives of internal control are met; and

                         • complying with applicable laws and regulations.

                         We are responsible for

                         • obtaining reasonable assurance about whether the financial statements
                           are presented fairly, in all material respects, in conformity with U.S.
                           generally accepted accounting principles;

                         • obtaining a sufficient understanding of internal control over financial
                           reporting and compliance with laws and regulations to plan the audit;
                           and




                         Page 3                                      GAO-03-822 Capitol Preservation Fund
• testing compliance with selected provisions of laws and regulations that
  have a direct and material effect on the financial statements.

In order to fulfill these responsibilities, we (1) examined, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements and notes, (2) assessed the accounting principles used and
significant estimates made by management, (3) evaluated the overall
presentation of the financial statements and notes, (4) obtained an
understanding of the design and operation of internal control related to
financial reporting (including safeguarding assets) and compliance with
laws and regulations and tested selected internal controls, and (5) tested
compliance with selected provisions of the following laws:

• Capitol Preservation Commission and Capitol Preservation Fund
  enabling legislation, 2 U.S.C. 2081-2086, and

• United States Capitol Visitor Center Commemorative Coin Act of 1999,
  Title II, Public Law 106-126.

We did not test all internal controls relevant to the operations of the Capitol
Preservation Fund. We limited our consideration to internal control over
financial reporting and compliance with laws and regulations for the
purpose of planning our audit. Because of inherent limitations in internal
control, misstatements due to error or fraud, losses, or noncompliance may
nevertheless occur and not be detected. We also caution that projecting
our consideration of internal control 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. In addition,
we caution that our internal control testing may not be sufficient for other
purposes.

We did not test compliance with all laws and regulations applicable to the
Capitol Preservation Fund. We limited our tests of compliance to selected
provisions of laws and regulations that we deemed applicable to the Fund’s
financial statements for the fiscal year ended September 30, 2002. We
caution that noncompliance may occur and not be detected by our tests
and that such testing may not be sufficient for other purposes.

We performed our work in accordance with U.S. generally accepted
government auditing standards.




Page 4                                        GAO-03-822 Capitol Preservation Fund
Commission   We provided a draft of our report to representatives of the Capitol
             Preservation Commission for their review and comment. The
Comments     Commission’s representatives agreed with the contents of our report.




             Jeanette M. Franzel
             Director
             Financial Management and Assurance

             May 2, 2003




             Page 5                                    GAO-03-822 Capitol Preservation Fund
Financial Statements


Statements of Financial Position




                                   Page 6   GAO-03-822 Capitol Preservation Fund
                           Financial Statements




Statements of Activities




                           Page 7                 GAO-03-822 Capitol Preservation Fund
                           Financial Statements




Statements of Cash Flows




                           Page 8                 GAO-03-822 Capitol Preservation Fund
                                Financial Statements




Notes to Financial Statements




                                Page 9                 GAO-03-822 Capitol Preservation Fund
Financial Statements




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Financial Statements




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Financial Statements




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           Financial Statements




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