Federally Chartered Corporation: Review of the Financial Statement Audit
Report for the Navy Wives Clubs of America for Fiscal Years 1997 and 1998
(Correspondence, 06/30/2000, GAO/AIMD-00-241R).

Pursuant to a congressional request, GAO reviewed the audit report
covering the financial statements of the Navy Wives Clubs of America for
fiscal years ended August 31, 1997, and 1998, focusing on whether the
audit report complied with the financial reporting requirements of the
law.

GAO noted that: (1) GAO's review disclosed no reportable instances of
noncompliance; and (2) the audit report included the auditor's opinion
that the financial statements of the corporation were presented fairly,
in all material respects, on a modified cash basis of accounting.

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

 REPORTNUM:  AIMD-00-241R
     TITLE:  Federally Chartered Corporation: Review of the Financial
	     Statement Audit Report for the Navy Wives Clubs of
	     America for Fiscal Years 1997 and 1998
      DATE:  06/30/2000
   SUBJECT:  Financial statement audits
	     Accounting standards
	     Audit reports
	     Financial statements
	     Financial records
	     Cash basis accounting

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GAO/AIMD-00-241R

MACROBUTTON B-285431 DOCPROPERTY B-number

   *
   * June 30, 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 Navy Wives Clubs of America for Fiscal Years 1997 and 1998

Dear Mr. Chairman:

   * As requested, we reviewed the audit report covering the financial
     statements of the Navy Wives Clubs of America, a federally chartered
     corporation, for the fiscal years ended August 31, 1997 and 1998. The
     corporation's purpose is to promote a friendly relationship between the
     wives of enlisted men who are serving in the active Navy, Marine Corps,
     and Coast Guard or in the Active Reserves of those services.
   * 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, on a modified cash basis of accounting. We are returning the audit
report you sent with your letter.

Sincerely yours,

David L. Clark

Director, Audit Oversight and Liaison

Enclosure

(911980)

  
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