Financial Audit: Congressional Award Foundation's Fiscal Years
2001 and 2000 Financial Statements (15-MAY-02, GAO-02-672).
GAO audited the financial statements of the Congressional Award
Foundation for fiscal years 2000 and 1999 and the related
statements of activities and cash flows. GAO found that (1) the
financial statements were presented fairly in conformity with
U.S. generally accepted accounting principles, (2) the Foundation
had effective internal control over financial reporting and
compliance with laws and regulations, and (3) there was no
reportable noncompliance with laws and regulations tested.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-02-672
ACCNO: A03355
TITLE: Financial Audit: Congressional Award Foundation's Fiscal
Years 2001 and 2000 Financial Statements
DATE: 05/15/2002
SUBJECT: Financial statement audits
Internal controls
Reporting requirements
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** 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-02-672
A
Report to the Congress
May 2002 FINANCIAL AUDIT Congressional Award Foundation?s Fiscal Years 2001
and 2000 Financial Statements
GAO- 02- 672
Letter 1 Auditor?s Report 3
Opinion on Financial Statements 3 Opinion on Internal Control 3 Compliance
With Laws and Regulations 4 Objectives, Scope, and Methodology 4
Foundation?s Comments 6
Financial Statements 8 Statements of Financial Position 8
Statements of Activities 9 Statements of Cash Flows 10 Notes to Financial
Statements 11
Letter
May 15, 2002 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 Congressional Award Foundation for the fiscal years ended September
30, 2001, and 2000. These financial statements are the responsibility of the
Congressional Award Foundation. This report also presents (1) our opinion on
the effectiveness of the Foundation?s related internal control as of
September 30, 2001, and (2) our conclusion on the Foundation?s compliance in
fiscal year 2001 with selected provisions of laws and regulations we tested.
We conducted our audit pursuant to section 8 of the Congressional Award Act,
as amended (2 U. S. C. 807), and in accordance with U. S. generally accepted
government auditing standards.
We are sending copies of this report to Senator Joseph I. Lieberman,
Chairman, and Senator Fred Thompson, Ranking Minority Member, Senate
Committee on Governmental Affairs; Representative Dan Burton, Chairman, and
Representative Henry A. Waxman, Ranking Minority Member, House Committee on
Government Reform; Representative John Boehner, Chairman, and Representative
George Miller, Ranking Minority Member, House Committee on Education and the
Workforce; Thomas D. Campbell, Chairman, National Board of Directors,
Congressional Award
Program; William E. Kelley, National Director, Congressional Award
Foundation; and other interested parties.
If you or your staff have any questions concerning this report, please
contact me at (202) 512- 9406 or Julie T. Phillips, Assistant Director, at
(202) 512- 5121. You can also reach us by e- mail at franzelj@ gao. gov or
phillipsj@ gao. gov. Key contributors to this report were Greg Ziombra and
Doug Delacruz.
Jeanette M. Franzel Acting Director Financial Management and Assurance
To the President of the Senate and the
Audi tor? Report s Speaker of the House of Representatives We have audited
the statements of financial position of the Congressional Award Foundation
(the Foundation) as of September 30, 2001, and 2000, and the related
statements of activities and statements of cash flows for the fiscal years
then ended. We found
the financial statements are presented fairly, in all material respects,
in conformity with U. S. generally accepted accounting principles;
the Foundation had effective internal control over financial reporting
(including safeguarding assets) and compliance with laws and regulations;
and
no reportable noncompliance with the provisions of laws and regulations we
tested.
The following sections provide additional detail about our conclusions and
the scope of our audit.
Opinion on Financial The financial statements and accompanying notes present
fairly, in all
Statements material respects, in conformity with U. S. generally accepted
accounting
principles, the Foundation?s financial position as of September 30, 2001,
and 2000, and the results of its activities and its cash flows for the
fiscal years then ended.
Opinion on Internal The Foundation maintained, in all material respects,
effective internal
Control control over financial reporting (including safeguarding assets) and
compliance as of September 30, 2001, that provided reasonable assurance that
misstatements, losses, or noncompliance material in relation to the
financial statements would be prevented or detected on a timely basis. Our
opinion is based on criteria established in our Standards for Internal
Control in the Federal Government. 1 We found matters involving internal
control that we do not consider to be reportable conditions. 2 We will 1
Standards for Internal Control in the Federal Government (GAO/ AIMD- 00- 21.
3.1, November 1999).
communicate these matters separately to the Foundation's management, along
with our suggestions for improvement.
Compliance With Laws Our tests for compliance with selected provisions of
laws and regulations
and Regulations disclosed no instances of noncompliance that would be
reportable under
U. S. 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.
Objectives, Scope, and The Foundation?s management is responsible for
Methodology preparing the annual financial statements in conformity with
U. S.
generally accepted accounting principles; establishing, maintaining, and
assessing the Foundation?s internal
control to provide reasonable assurance that the Foundation?s control
objectives are met; and
complying with applicable laws and regulations. We are responsible for
obtaining reasonable assurance about whether (1) the financial statements
are presented fairly, in all material respects, in conformity with U. S.
generally accepted accounting principles and (2) management maintained
effective related internal control, the objectives of which are the
following:
financial reporting - transactions are properly recorded, processed, and
summarized to permit the preparation of financial statements, in conformity
with U. S. generally accepted accounting principles, and assets are
safeguarded against loss from unauthorized acquisition, use, or disposition;
and
2 Reportable conditions are matters coming to our attention that, in our
judgment, should be communicated because they represent significant
deficiencies in the design or operation of internal control that could
adversely affect an organization's ability to meet the objectives of
reliable financial reporting and compliance with applicable laws and
regulations.
compliance with laws and regulations - transactions are executed in
accordance with laws and regulations that could have a direct and material
effect on the financial statements.
We are also responsible for testing compliance with selected provisions of
laws and regulations that have a direct and material effect on the financial
statements.
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 the Foundation?s management; evaluated the overall presentation of the
financial statements and notes; obtained an understanding of the
Foundation?s internal control related to financial reporting (including
safeguarding assets) and compliance with laws and regulations;
tested relevant internal control over financial reporting (including
safeguarding of assets) and compliance and evaluated the design and
operating effectiveness of internal control; and tested compliance with
selected provisions of the Congressional Award
Act, as amended. We did not evaluate internal controls relevant to operating
objectives, such as controls relevant to ensuring efficient operations. We
limited our internal control testing to controls over financial reporting
and compliance. Because of inherent limitations in internal control,
misstatements due to error or fraud, losses, or noncompliance may
nevertheless occur and not be detected. We also caution that projecting the
results of our tests of internal control 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 did not test compliance with all laws and regulations applicable to the
Foundation. We limited our tests of compliance to those provisions of laws
and regulations that we deemed to have a direct and material effect on the
financial statements for the fiscal year ended September 30, 2001. We
caution that noncompliance may occur and not be detected by our tests and
that such testing may not be sufficient for other purposes. We performed our
work in accordance with U. S. generally accepted government auditing
standards.
Foundation?s We provided a draft of our report to Congressional Award
Foundation Comments
officials for their review and comment. Foundation officials agreed with the
contents of our report.
Jeanette M. Franzel Acting Director Financial Management and Assurance
April 12, 2002 (194084)
Financial Statements
Statements of Financial Position
The Congressional Award Foundation Statements of Financial Position As of
September 30, 2001 and 2000
2001 2000 Assets
Cash and cash equivalents ( note 3) ( $ 7,629) $ 288,177 Contributions
receivable, net ( note 4) 205,000 Prepaid expense 4,441 4,392 Congressional
Award Fellowship Trust ( note 5) 356,934 662,864 Equipment, furniture, and
fixtures, net ( note 2) 65,245 69,509 Escrowed funds from councils, net -
5,145 Other assets - 170
Total assets $ 623,991 $ 1,030,257 Liabilities and net assets
Accounts payable 39,068 Accrued payroll, related taxes, and leave 31,721
25,176 Obligation under capital lease 6,364 9,136 Escrowed funds due
councils, net - 5,145
Total liabilities 77,153 39,457 Net assets
Unrestricted 30,047 650,121 Temporarily restricted 252,334 76,222
Permanently restricted 264,457 264,457
Total net assets 546,838 990,800 Total liabilities and net assets $ 623,991
$ 1,030,257
The accompanying notes are an integral part of these financial statements.
Statements of Activities
The Congressional Award Foundation Statements of Activities For the Fiscal
Years Ended September 30, 2001, and 2000
2001 2000 Changes in unrestricted net assets:
Operating revenue and other support
Contributions $ 519,041 $ 834,828 Contributions - In- kind ( note 6) 74,642
82,794 Program and other revenues 53,464 43,381 Interest and dividends
applied to current operations 7,778 17,678 Net assets released from
restrictions ( note 7) 125,939 33,714
Total operating revenue and other support 780,864 1,012,395 Operating
expenses ( note 12)
Salaries, benefits, and payroll taxes 482,485 446,512 Program, promotion,
and travel 163,525 152,515 Fund- raising expense 131,761 147,428 Gold Award
ceremony 34,541 41,706 Professional fees 181,087 127,139 Depreciation 18,601
15,049 Board of Directors expense 12,136 11,467 Administrative and other
expense 70,611 45,695 Bad debt expense - 2,052
Total operating expenses 1,094,747 989,563 Other changes
Investment earnings ( losses) not applied to current operations ( 306,190)
135,547
Increase ( decrease) in unrestricted net assets ( 620,073) 158,379 Changes
in temporarily restricted net assets:
Contributions ( note 8) 302,050 5,000 Net assets released from restrictions
( note 7) ( 125,939) ( 33,714)
Increase ( decrease) in temporarily restricted net assets 176,111 ( 28,714)
Changes in permanently restricted net assets:
Contributions - 350
Increase in permanently restricted net assets 0 350 Increase ( decrease) in
net assets ( 443,962) 130,015
Net assets at beginning of year 990,800 860,785
Net assets at end of year $ 546,838 $ 990,800
The accompanying notes are an integral part of these financial statements.
Statements of Cash Flows
The Congressional Award Foundation Statements of Cash Flows For the Fiscal
Years Ended September 30, 2001, and 2000
2001 2000 Cash flows from operating activities:
Contributions received $ 616,091 $ 917,629 Cash received from councils and
independents 53,464 45,804 Interest and dividends received 7,778 17,678 Cash
paid to employees ( 373,359) ( 326,674) Cash paid to vendors ( 582,411) (
600,069)
Net cash ( used) / provided from operating activities ( 278,437) 54,368 Cash
flows from investing activities:
Purchase of equipment ( 14,337) ( 6,090) Proceeds from sales of assets (
260) - Purchases of investments - ( 500,661) Proceeds from sale of
investments - 399,525
Net cash ( used) / provided in investing activities ( 14,597) ( 107,226)
Cash flows from financing activities:
Payments on capital lease ( 2,772) ( 2,749)
Net cash used in financing activities ( 2,772) ( 2,749)
Net increase ( decrease) in cash ( 295,806) ( 55,607) Cash at beginning of
the year 288,177 343,784
Cash at end of year ( $ 7,629) $ 288,177 Reconciliation of change in net
assets to net cash ( used) / provided from operating activities Change in
net assets ( $ 443,962) $ 130,015
Adjustments to reconcile change in net assets to net cash used/ provided
from operating activities:
Investment ( earnings) losses not applied to operations 306,190 ( 135,547)
Depreciation expense 18,601 15,049 Bad debt expense - 2,052 Restricted trust
fund contributions - ( 350) Decrease ( increase) in contributions receivable
( 205,000) 77,800 Decrease ( increase) in other accounts receivable - 2,423
Decrease ( increase) in prepaid expense ( 49) ( 43) Decrease ( increase) in
other assets 170 ( 170) Increase ( decrease) in accounts payable 39,068 (
47,558) Increase ( decrease) in accrued payroll, related taxes and leave
6,545 10,697
Net cash ( used) / provided from operating activities ( $ 278,437) $ 54,368
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
(194084)
a
GAO United States General Accounting Office
Page i GAO- 02- 672 Congressional Award Foundation
Contents
Page ii GAO- 02- 672 Congressional Award Foundation
Page 1 GAO- 02- 672 Congressional Award Foundation United States General
Accounting Office
Washington, D. C. 20548 Page 1 GAO- 02- 672 Congressional Award Foundation
A
Page 2 GAO- 02- 672 Congressional Award Foundation
Page 3 GAO- 02- 672 Congressional Award Foundation United States General
Accounting Office
Washington, D. C. 20548 Page 3 GAO- 02- 672 Congressional Award Foundation
A
Page 4 GAO- 02- 672 Congressional Award Foundation
Page 5 GAO- 02- 672 Congressional Award Foundation
Page 6 GAO- 02- 672 Congressional Award Foundation
Page 7 GAO- 02- 672 Congressional Award Foundation
Page 8 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 9 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 10 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 11 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 12 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 13 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 14 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 15 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 16 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 17 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 18 GAO- 02- 672 Congressional Award Foundation
Financial Statements Page 19 GAO- 02- 672 Congressional Award Foundation
GAO?s Mission The General Accounting Office, the investigative arm of
Congress, exists to support Congress in meeting its constitutional
responsibilities and to help improve
the performance and accountability of the federal government for the
American people. GAO examines the use of public funds; evaluates federal
programs and policies; and provides analyses, recommendations, and other
assistance to help Congress make informed oversight, policy, and funding
decisions. GAO?s commitment to good government is reflected in its core
values of accountability, integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony
The fastest and easiest way to obtain copies of GAO documents at no cost is
through the Internet. GAO?s Web site (www. gao. gov) contains abstracts and
fulltext files of current reports and testimony and an expanding archive of
older products. The Web site features a search engine to help you locate
documents using key words and phrases. You can print these documents in
their entirety, including charts and other graphics.
Each day, GAO issues a list of newly released reports, testimony, and
correspondence. GAO posts this list, known as ?Today?s Reports,? on its Web
site daily. The list contains links to the full- text document files. To
have GAO e- mail this
list to you every afternoon, go to www. gao. gov and select ?Subscribe to
daily E- mail alert for newly released products? under the GAO Reports
heading.
Order by Mail or Phone The first copy of each printed report is free.
Additional copies are $2 each. A check or money order should be made out to
the Superintendent of Documents. GAO
also accepts VISA and Mastercard. Orders for 100 or more copies mailed to a
single address are discounted 25 percent. Orders should be sent to:
U. S. General Accounting Office 441 G Street NW, Room LM Washington, D. C.
20548
To order by Phone: Voice: (202) 512- 6000 TDD: (202) 512- 2537 Fax: (202)
512- 6061
To Report Fraud, Waste, and Abuse in Federal Programs
Contact: Web site: www. gao. gov/ fraudnet/ fraudnet. htm E- mail: fraudnet@
gao. gov Automated answering system: (800) 424- 5454 or (202) 512- 7470
Public Affairs Jeff Nelligan, managing director, NelliganJ@ gao. gov (202)
512- 4800 U. S. General Accounting Office, 441 G Street NW, Room 7149
Washington, D. C. 20548
United States General Accounting Office Washington, D. C. 20548- 0001
Official Business Penalty for Private Use $300
Address Service Requested Presorted Standard
Postage & Fees Paid GAO Permit No. GI00
*** End of document. ***