Federally Chartered Corporation: Review of the Financial Statement Audit
Report for the National Society Daughters of the American Colonists for
Fiscal Year 1999 (Correspondence, 06/16/2000, GAO/AIMD-00-222R).

Pursuant to a congressional request, GAO reviewed the audit report
covering the financial statements of the National Society Daughters of
the American Colonists for the fiscal year ended February 28, 1999,
focusing on whether the audit report complied with the financial
reporting requirements of the law.

GAO noted that: (1) nothing came to GAO's attention that would cause it
to believe that the financial reporting requirements of the law have not
been met; and (2) the audit report included the auditor's opinion that
the financial statements of the corporation were presented fairly in
accordance with generally accepted accounting principles.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-00-222R
     TITLE:  Federally Chartered Corporation: Review of the Financial
	     Statement Audit Report for the National Society
	     Daughters of the American Colonists for Fiscal Year 1999
      DATE:  06/16/2000
   SUBJECT:  Charitable organizations
	     Federal corporations
	     Reporting requirements
	     Financial statement audits
	     Audit reports
	     Accounting standards
	     Financial records
	     Scholarship programs

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GAO/AIMD-00-222R

MACROBUTTON B-285348 DOCPROPERTY B-number

   *
   * June 16, 2000

The Honorable Henry J. Hyde

Chairman, Committee on the Judiciary

House of Representatives

Subject: Federally Chartered Corporation: Review of the Financial Statement
Audit

Report for the National Society Daughters of the American Colonists for
Fiscal Year 1999

Dear Mr. Chairman:

   * As requested, we reviewed the audit report covering the financial
     statements of the National Society Daughters of the American Colonists,
     a federally chartered corporation, for the fiscal year ended February
     28, 1999. The corporation provides scholarships and awards, publishes a
     yearbook, and participates in a variety of patriotic projects.
   * Federally chartered corporations are required under 36 U.S.C. 10101 to

   * present the corporation's assets and liabilities and reasonable detail
     on the corporation's income and expenses in annual financial
     statements,
   * obtain an annual financial audit by an independent public accountant,
     and
   * submit the auditor's report and the corporation's financial statements
     to the Congress.

The objective of our review was to determine whether the audit report
complied with the financial reporting requirements of the law. In carrying
out our work, we reviewed the corporation's financial statements and the
accompanying notes, performed certain analytical procedures related to
information presented in the financial statements, reviewed the auditor's
report, and made inquiries to corporation officials or the auditor as we
deemed necessary. We did not review the auditor's working papers. Our review
disclosed no reportable instances of noncompliance.

The audit report included the auditor's opinion that the financial
statements of the corporation were presented fairly, in all material
respects, in accordance with generally accepted accounting principles. We
are returning the audit report you sent with your letter.

Sincerely yours,

David L. Clark

Director, Audit Oversight and Liaison

w/o Enclosure

(911977)

  
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