Federally Chartered Corporation: Review of the Financial	 
Statement Audit Report for the Blue Star Mothers of America,	 
Inc., for Fiscal Year 2000 (17-OCT-01, GAO-02-163R).		 
								 
GAO reviewed the audit report covering the financial statements  
of the Blue Star Mothers of America, Inc., for fiscal year 2000. 
GAO found the corporation's resources were insufficient to engage
a certified or licensed independent public accountant to perform 
the audit, as is required by law. The corporation is undertaking 
an initiative to improve its funding.				 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-163R					        
    ACCNO:   A02340						        
  TITLE:     Federally Chartered Corporation: Review of the Financial 
Statement Audit Report for the Blue Star Mothers of America,	 
Inc., for Fiscal Year 2000					 
     DATE:   10/17/2001 
  SUBJECT:   Audit reports					 
	     Financial statement audits 			 
	     Accounting standards				 
	     Federal corporations				 
	     Reporting requirements				 

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GAO-02-163R
     
GAO- 02- 163R Blue Star Mothers of American, Inc.

United States General Accounting Office Washington, DC 20548

October 17, 2001 The Honorable F. James Sensenbrenner, Jr. Chairman,
Committee on the Judiciary House of Representatives

Subject: Federally Chartered Corporation: Review of the Financial Statement
Audit Report for the Blue Star Mothers of America, Inc., for Fiscal Year
2000

Dear Mr. Chairman: As requested, we reviewed the audit report covering the
financial statements of the Blue Star Mothers of America, Inc., a federally
chartered corporation, for the fiscal year ended August 31, 2000. The
corporation?s purpose is to perpetuate the memory of the men and women who
have served our country as members of the Armed Forces.

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

! present the corporation?s assets and liabilities and reasonable detail on
the corporation?s income and expenses in annual financial statements,

! obtain an annual financial audit by an independent public accountant, and

! 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 audit
report, and made inquiries to corporation officials or the individual
performing the audit as we deemed necessary. We did not review the audit
working papers.

GAO- 02- 163R Blue Star Mothers of America, Inc. Page 2 We were informed by
the individual performing the audit that she was not a certified

or licensed independent public accountant. The audit requirement under 36 U.
S. C. 10101 states a certified or licensed independent public accountant is
to perform the audit. A corporation official said resources are insufficient
at this time to engage a certified or licensed independent public
accountant. The corporation is undertaking an initiative to improve its
funding. 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 (194074)
*** End of document. ***