Federally Chartered Corporation: Review of the Financial Statement Audit
Reports for the National Academy of Sciences for Fiscal Year 1998 and the
6 Months Ended December 31, 1998 (Correspondence, 08/25/2000,
GAO/AIMD-00-302R).

Pursuant to a congressional request, GAO reviewed the audit reports
covering the financial statements of the National Academy of Sciences,
focusing on whether the audit reports 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 auditors' opinions
that the financial statements of the corporation were presented fairly
in accordance with generally accepted accounting principles.

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

 REPORTNUM:  AIMD-00-302R
     TITLE:  Federally Chartered Corporation: Review of the Financial
	     Statement Audit Reports for the National Academy of
	     Sciences for Fiscal Year 1998 and the 6 Months Ended
	     December 31, 1998
      DATE:  08/25/2000
   SUBJECT:  Corporate audits
	     Financial statement audits
	     Audit reports
	     Financial records
	     Reporting requirements
	     Federal corporations
	     Auditing standards

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GAO/AIMD-00-302R

National Academy of Sciences

United States General Accounting Office Washington, DC 20548

Accounting and Information Management Division

B- 285950 August 25, 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 National Academy of Sciences for Fiscal Year 1998 and
the 6 Months Ended December 31, 1998

Dear Mr. Chairman: As requested, we reviewed the audit reports covering the
financial statements of the National Academy of Sciences, a federally
chartered corporation, for the fiscal year ended June 30, 1998 and the 6
months ended December 31, 1998. The corporation changed the end of its
accounting period from June 30 to December 31 during 1998. The corporation
operates as a private cooperative society of distinguished scholars engaged
in scientific or engineering research, dedicated to the furtherance of
science and its use for the general welfare.

Federally chartered corporations are required under 36 U. S. C. 10101 to

ï¿½ present the corporation's assets and liabilities and reasonable detail on
the corporation's income and expenses in annual financial statements,

ï¿½ obtain an annual financial audit by an independent public accountant, and

ï¿½ 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. Our review
disclosed no reportable instances of noncompliance.

B-285950 GAO/AIMD-00- 302R National Academy of Sciences Page 2 The
audit reports included the auditors' opinions that the financial statements
of the

corporation were presented fairly in accordance with generally accepted
accounting principles. We are returning the audit reports you sent with your
letter.

Sincerely yours, David L. Clark Director, Audit Oversight and Liaison

Enclosure (912002)
*** End of document. ***