Financial Audit: Capitol Preservation Fund for 6 Months Ended 9/30/93 and
Year Ended 3/31/93 (Letter Report, 08/04/94, GAO/AIMD-94-124).

GAO audited the financial statement of the Capitol Preservation Fund for
the six months ended September 30, 1993, and for the year ended March
31, 1993. The Fund was created to handle improvements to and
preservation of the U.S. Capitol building. The Fund consists of
donations, interest on investments, and surcharges from the sale of
commemorative coins.  GAO found that the financial statements were
reliable in all material respects; internal controls reasonably ensured
that losses, noncompliance with laws and regulations, and misstatements
material to the financial statements would be prevented or detected; and
there was no material noncompliance with laws and regulations.

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

 REPORTNUM:  AIMD-94-124
     TITLE:  Financial Audit: Capitol Preservation Fund for 6 Months 
             Ended 9/30/93 and Year Ended 3/31/93
      DATE:  08/04/94
   SUBJECT:  Financial statement audits
             Fund audits
             Funds management
             Financial management
             Accounting procedures
             Auditing standards
             Legislative bodies
             Internal controls
             Compliance
             Financial records
IDENTIFIER:  Capitol Preservation Fund
             
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Cover
================================================================ COVER


Report to the Congress

August 1994

FINANCIAL AUDIT - CAPITOL
PRESERVATION FUND FOR 6 MONTHS
ENDED 9/30/93 AND
YEAR ENDED 3/31/93

GAO/AIMD-94-124

Financial Audit


Abbreviations
=============================================================== ABBREV


Letter
=============================================================== LETTER


B-251505

August 4, 1994

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

In accordance with 40 U.S.C.  188a-3, we audited the accompanying
statements of financial position of the Capitol Preservation Fund for
the 6 months ended September 30, 1993, and for the year ended March
31, 1993, and the related statements of revenues and expenses and
cash flows for the periods then ended.  We found

  the financial statements were reliable in all material respects;

  internal controls in effect on September 30, 1993, and March 31,
     1993, provided reasonable assurance that losses, noncompliance
     with laws and regulations, and misstatements material to the
     financial statements would be prevented or detected; and

  no material noncompliance with laws and regulations we tested. 

The following sections outline each conclusion in more detail and
discuss the scope of our audits. 


   OPINION ON FINANCIAL STATEMENTS
------------------------------------------------------------ Letter :1

The financial statements and accompanying notes of the Capitol
Preservation Fund as of September 30, 1993 and March 30, 1993,
present fairly, in conformity with generally accepted accounting
principles, the Fund's

  assets, liabilities, and government equity;

  revenues and expenses; and

  cash flows. 

As discussed in note 1, the financial statements present the results
of activities financed through the Capitol Preservation Fund and are
not intended to present the financial position and results of
operations of the Capitol Preservation Commission as a whole.  For
example, the financial statements do not include administrative
costs, such as salaries and benefits, which are paid from
appropriated funds and are not readily identifiable. 


   OPINION ON INTERNAL CONTROLS
------------------------------------------------------------ Letter :2

The internal controls we evaluated were those designed to

  safeguard assets against loss from unauthorized use or disposition;

  assure the execution of transactions in accordance with laws and
     regulations; and

  properly record, process, and summarize transactions to permit the
     preparation of financial statements and to maintain
     accountability for assets. 

Those controls in effect on September 30, 1993, and March 31, 1993,
provided reasonable assurance that losses, noncompliance, or
misstatements material to the financial statements would be prevented
or detected. 


   COMPLIANCE WITH LAWS AND
   REGULATIONS
------------------------------------------------------------ Letter :3

Our current year audit tests for compliance with selected provisions
of laws and regulations disclosed no material instances of
noncompliance.  Also, nothing came to our attention in the course of
our other work to indicate that material noncompliance with such
provisions occurred. 


   OBJECTIVES, SCOPE, AND
   METHODOLOGY
------------------------------------------------------------ Letter :4

Management is responsible for

  preparing annual financial statements in conformity with generally
     accepted accounting principles,

  establishing and maintaining internal controls to provide
     reasonable assurance that the internal control objectives
     mentioned above are met, and

  complying with applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether
(1) the financial statements are reliable (free of material
misstatement and presented fairly in conformity with generally
accepted accounting principles) and (2) relevant internal controls
are in place and operating effectively.  We are also responsible for
testing compliance with selected provisions of laws and regulations. 

In order to fulfill these responsibilities, we

  examined, on a test basis, evidence supporting the amounts and
     disclosures in the financial statements;

  assessed the accounting principles used and significant estimates
     made by management;

  evaluated the overall presentation of the financial statements;

  evaluated and tested relevant internal controls which encompassed
     the following areas:  treasury, revenues, expenses, and
     financial reporting; and

  tested compliance with selected provisions of 40 U.S.C.  188a-2,
     which governs expenses of the Fund and requires that surcharges
     on the sale of bicentennial coins, donations, and interest be
     properly accounted for and invested by the Library of Congress. 

We limited our work to accounting and other controls necessary to
achieve the objectives outlined in our opinion on internal controls. 
Because of inherent limitations in any system of internal control,
losses, noncompliance, or misstatements may nevertheless occur and
not be detected.  We also caution that projecting our evaluation to
future periods is subject to the risk that controls may become
inadequate because of changes in conditions or that the degree of
compliance with controls may deteriorate. 

We performed our work in accordance with generally accepted
government auditing standards.  We completed our audit work on May 5,
1994. 

We are sending copies of this report to the Secretary of the Senate
and to the Co-Chairmen, Capitol Preservation Commission.  Copies will
be sent to others upon request.







Charles A.  Bowsher
Comptroller General
of the United States


FINANCIAL STATEMENTS
=========================================================== Appendix 0

   Statements of Financial
   Position

   (See figure in printed
   edition.)

   Statements of Revenues and
   Expenses

   (See figure in printed
   edition.)

   Statements of Cash Flows

   (See figure in printed
   edition.)

   Notes to Financial Statements

   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)

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