Federally Chartered Corporation: Review of the Financial Statement Audit
Report for the Naval Sea Cadet Corps for 1998 and 1997 (Correspondence,
10/27/2000, GAO/GAO-01-141R).

GAO reviewed the financial statement audit reports for the Naval Sea
Cadet Corps for 1998 and 1997. 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-01-141R
     TITLE:  Federally Chartered Corporation: Review of the Financial
	     Statement Audit Report for the Naval Sea Cadet Corps
	     for 1998 and 1997
      DATE:  10/27/2000
   SUBJECT:  Audit reports
	     Financial statement audits
	     Federal corporations
	     Accounting standards
	     Reporting requirements
	     Corporate audits
	     Financial records
	     Employment or training programs

******************************************************************
** 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-01-141R

Naval Sea Cadet Corps

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 Report for the Naval Sea Cadet Corps for 1998 and 1997

Dear Mr. Chairman: As requested, we reviewed the audit report covering the
financial statements of the Naval Sea Cadet Corps, a federally chartered
corporation, for the years ended December 31, 1998 and 1997. The
corporation's purpose, in cooperation with the Department of the Navy, is to
encourage and aid American young people to develop an interest and skill in
basic seamanship and its naval adaptations, and to train them in seagoing
skills.

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 report
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'
report, and made inquiries to corporation officials or the auditor as we
deemed necessary. We did not review the auditors' working papers. Our review
disclosed no reportable instances of noncompliance.

GAO- 01- 141R Naval Sea Cadet Corps Page 2 The audit report included the
auditors' opinion that the financial statements of the

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

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

w/ o Enclosure (912012)
*** End of document ***