Financial Audit: Capitol Preservation Fund's Fiscal Years 1999 and 1998
Financial Statements (Letter Report, 03/14/2000, GAO/AIMD-00-95).

Pursuant to a legislative requirement, GAO audited the financial
statements of the Capitol Preservation Fund for the fiscal years ended
September 30, 1999 and 1998, and the related statements of activities
and statements of cash flows for the fiscal years then ended.

GAO noted that: (1) the financial statements were fairly presented in
conformity with generally accepted accounting principles; (2) there were
no material weaknesses in the internal controls GAO tested; and (3)
there was no reportable noncompliance with selected provisions of laws
and regulations GAO tested for the fiscal year ended September 30, 1999.

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

 REPORTNUM:  AIMD-00-95
     TITLE:  Financial Audit: Capitol Preservation Fund's Fiscal Years
	     1999 and 1998 Financial Statements
      DATE:  03/14/2000
   SUBJECT:  Funds management
	     Financial statement audits
	     Historic preservation
	     Auditing standards
	     Internal controls
	     Accounting standards
	     Reporting requirements
IDENTIFIER:  Capitol Preservation Fund

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GAO/AIMD-00-95

10

Statements of Financial Position 10

Statements of Activities 11

Statements of Cash Flows 12

Notes to the Financial Statements 13

16

Schedules of Financial Position - Coin Sales Surcharge Fund 16

Schedules of Financial Position - Gifts and Sales of Art, Property and
Money Fund 17

Schedules of Activities - Coin Sales Surcharge Fund 18

Schedules of Activities - Gifts and Sales of Art, Property and Money
Fund 19

Schedules of Cash Flows - Coin Sales Surcharge Fund 20

Schedules of Cash Flows - Gifts and Sales of Art, Property and Money
Fund 21

Accounting and Information
Management Division

B-284560

March 14, 2000

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 for the fiscal years ended September 30, 1999 and 1998. It
also discusses our consideration of internal controls in conducting the
audit and our evaluation of compliance with laws and regulations during
fiscal year 1999. We conducted our audit pursuant to 40 U.S.C. 188a-3 and in
accordance with generally accepted government auditing standards.

We are sending copies of this report to the members of the Capitol
Preservation Commission; the Honorable Alan M. Hantman, Architect of the
Capitol; the Honorable James H. Billington, Librarian of Congress, and other
interested parties.

Robert W. Gramling
Director, Corporate Audits
and Standards

Accounting and Information
Management Division

B-284560

To the President of the Senate and the
Speaker of the House of Representatives

We have audited the statements of financial position of the Capitol
Preservation Fund as of September 30, 1999 and 1998, and the related
statements of activities and statements of cash flows for the fiscal years
then ended. We found

ï¿½ the financial statements were fairly presented in conformity with
generally accepted accounting principles,

ï¿½ no material weaknesses in the internal controls we tested, and

ï¿½ no reportable noncompliance with selected provisions of laws and
regulations we tested for the fiscal year ended September 30, 1999.

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

The financial statements and accompanying notes present fairly, in all
material respects, in conformity with generally accepted accounting
principles, the Capitol Preservation Fund's financial position as of
September 30, 1999 and 1998, and the results of its activities and its cash
flows for the fiscal years then ended.

Our audit was conducted for the purpose of forming an opinion on the
financial statements taken as a whole. The supplemental schedules presented
by source of funds as of and for the periods ended September 30, 1999 and
1998 are presented for the purpose of additional analysis and are not a
required part of the financial statements. This information has been
subjected to the audit procedures applied to the audit of the consolidated
financial statements. In our opinion, the information in the supplemental
schedules is fairly stated in all material respects in relation to the
consolidated financial statements taken as a whole.

We gained an understanding of internal controls designed to

ï¿½ safeguard assets against loss from unauthorized acquisition, use, or
disposition;

ï¿½ assure the execution of transactions in accordance with management's
authority and with laws and regulations that could have a direct and
material effect on the financial statements; and

ï¿½ properly record, process, and summarize transactions to permit the
preparation of reliable financial statements and to maintain accountability
over assets.

The objective of our internal control work was to determine procedures for
auditing the financial statements, not to express an opinion on internal
controls. Accordingly, we do not express such an opinion. However, for the
controls we tested, we found no material weaknesses in the system of
internal control and its operations for the fiscal year ended September 30,
1999. A material weakness is a reportable condition1 in which the design or
operation of the internal controls does not reduce to a relatively low level
the risk that losses, noncompliance, or misstatements 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 their assigned
duties. Our internal control work would not necessarily disclose all
material weaknesses.

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

The management of the Capitol Preservation Commission is responsible for

ï¿½ preparing the Fund's annual financial statements in conformity with
generally accepted accounting principles,

ï¿½ establishing and maintaining the Fund's internal controls to provide
reasonable assurance that the internal control objectives mentioned above
are met, and

ï¿½ complying with applicable laws and regulations.

We are responsible for obtaining reasonable assurance about whether the
financial statements are free of material misstatements and presented
fairly, in all material respects, in conformity with generally accepted
accounting principles. Also, we are responsible for obtaining a sufficient
understanding of internal controls to plan the audit and for testing
compliance with selected provisions of laws and regulations that have a
direct and material effect on the financial statements.

To fulfill these responsibilities, we

ï¿½ examined evidence supporting the amounts and disclosures in the financial
statements and notes;

ï¿½ assessed the accounting principles used by management;

ï¿½ evaluated the overall presentation of the financial statements;

ï¿½ obtained an understanding of the internal controls related to safeguarding
assets, compliance with laws and regulations, and financial reporting; and

ï¿½ tested compliance with selected provisions of laws and regulations.

We conducted our audit in accordance with generally accepted government
auditing standards.

We provided a draft of our report to the Architect of the Capitol and to the
Director of Financial Services for the Library of Congress for review and
comment. As needed, the Office of the Architect of the Capitol has provided
project support and assistance to the Capitol Preservation Commission. The
Library of Congress provides financial management services for the Capitol
Preservation Fund, including preparing the Fund's financial statements. The
Architect and the Director agreed with the contents of our report.

We appreciate the cooperation and assistance the Architect of the Capitol
and the Library of Congress management and staff provided during our audit
of the Capitol Preservation Fund's fiscal years 1999 and 1998 financial
statements. If you have any questions regarding this report, please contact
me or John J. Reilly at (202) 512-9406. Key contributors to this assignment
were Patricia Summers and Greg Ziombra.

Robert W. Gramling
Director, Corporate Audits
and Standards

January 14, 2000

Financial Statements

Statements of Financial Position
Statements of Activities
Statements of Cash Flows
Notes to the Financial Statements
Supplemental Schedules

Schedules of Financial Position - Coin Sales Surcharge Fund
Schedules of Financial Position - Gifts and Sales of Art, Property and Money
Fund
Schedules of Activities - Coin Sales Surcharge Fund
Schedules of Activities - Gifts and Sales of Art, Property and Money Fund
Schedules of Cash Flows - Coin Sales Surcharge Fund
Schedules of Cash Flows - Gifts and Sales of Art, Property and Money Fund
(917745)
  

1. Reportable conditions involve matters coming to the auditor's attention
relating to significant deficiencies in the design or operation of internal
controls that, in the auditor's judgment, could adversely affect an entity's
ability to (1) safeguard assets against loss from unauthorized acquisition,
use, or disposition, (2) ensure the execution of transactions in accordance
with management's authority and with laws and regulations, and (3) properly
record, process, and summarize transactions to permit the preparation of
financial statements and to maintain accountability for assets.
*** End of document. ***