Federally Chartered Corporation: Review of the Financial Statement Audit
Reports for the National Federation of Music Clubs for Fiscal Years 1999
and 1998 (Correspondence, 10/27/2000, GAO/GAO-01-139R).

GAO reviewed the financial statement audit reports for the National
Federation of Music Clubs for fiscal years 1999 and 1998. GAO found no
reportable instances of noncompliance with the requirements of the law,
and the audit report included the auditor's opinion that the financial
statements of the corporation were presented fairly in accordance with
generally accepted accounting principles.

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

 REPORTNUM:  GAO-01-139R
     TITLE:  Federally Chartered Corporation: Review of the Financial
	     Statement Audit Reports for the National Federation
	     of Music Clubs for Fiscal Years 1999 and 1998
      DATE:  10/27/2000
   SUBJECT:  Financial statement audits
	     Audit reports
	     Federal corporations
	     Accounting standards
	     Reporting requirements
	     Corporate audits
	     Financial records

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GAO-01-139R

National Federation of Music Clubs

United States General Accounting Office Washington, DC 20548

October 27, 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 Federation of Music Clubs for Fiscal Years
1999 and 1998

Dear Mr. Chairman: As requested, we reviewed the audit reports covering the
financial statements of the National Federation of Music Clubs, a federally
chartered corporation, for the fiscal years ended June 30, 1999 and 1998.
The corporation's purpose is to encourage American musical activities. The
corporation advances its objectives by granting awards and scholarships,
publishing periodicals, and sponsoring various music related activities.

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 auditors' 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.

GAO- 01- 139R National Federation of Music Clubs Page 2 The audit reports
included the auditors' opinions that the financial statements of the

corporation were presented fairly on a modified cash basis of accounting. We
are returning the audit reports you sent with your letter.

Sincerely yours, Jeffrey C. Steinhoff Managing Director Financial Management
and Assurance

w/ o Enclosure (912007)
*** End of document ***