Federally Chartered Corporation: Review of the Financial Statement Audit
Reports for the Pearl Harbor Survivors Association for Fiscal Years 1998
and 1999 (Correspondence, 06/30/2000, GAO/AIMD-00-243R).

Pursuant to a congressional request, GAO reviewed the audit report
covering the financial statements of the Pearl Harbor Survivors
Association for fiscal years ended September 30, 1998 and 1999, focusing
on whether the audit report complied with the financial reporting
requirements of the law.

GAO noted that: (1) GAO did not review the auditors' working papers; (2)
the audit reports included the auditors' opinions that with one
exception, the financial statements of the corporation were presented
fairly, in all material respects, on a modified cash basis of
accounting; and (3) the exception related to the fact the auditors did
not give an opinion on the inventory amounts.

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

 REPORTNUM:  AIMD-00-243R
     TITLE:  Federally Chartered Corporation: Review of the Financial
	     Statement Audit Reports for the Pearl Harbor
	     Survivors Association for Fiscal Years 1998 and 1999
      DATE:  06/30/2000
   SUBJECT:  Accounting standards
	     Financial statement audits
	     Audit reports
	     Federal corporations
	     Reporting requirements
	     Financial records
	     Historic preservation

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Testimony.                                               **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************

GAO/AIMD-00-243R

MACROBUTTON B-285439 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

Reports for the Pearl Harbor Survivors Association for Fiscal Years 1998 and
1999

Dear Mr. Chairman:

   * As requested, we reviewed the audit reports covering the financial
     statements of the Pearl Harbor Survivors Association, a federally
     chartered corporation, for the fiscal years ended September 30, 1998
     and 1999. The corporation's purpose is to collate, preserve, and
     encourage the study of historical episodes, chronicles, mementos, and
     events pertaining to "The Day of Infamy, 7 December 1941", and in
     particular those memories and records of patriotic service performed by
     the heroic Pearl Harbor survivors and nonsurvivors.
   * 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 reports
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 auditors'
reports, and made inquiries to corporation officials or the auditors as we
deemed necessary. We did not review the auditors' working papers.

The audit reports included the auditors' opinions that with one exception,
the financial statements of the corporation were presented fairly, in all
material respects, on a modified cash basis of accounting. The exception
related to the fact the auditors did not observe the taking of the physical
inventory and accordingly, were unable to give an opinion on the inventory
amounts.

We are returning the audit reports you sent with your letter.

Sincerely yours,

David L. Clark

Director, Audit Oversight and Liaison

Enclosure

(911982)

  
*** End of document. ***