Federally Chartered Corporation: Review of the Financial	 
Statement Audit Reports for the Naval Sea Cadet Corps for 2000	 
and 1999 (17-MAY-02, GAO-02-760R).				 
                                                                 
GAO reviewed the financial statement audit reports for the Naval 
Sea Cadet Corps for fiscal years 2000 and 1999. GAO found no	 
reportable instances of noncompliance. 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-02-760R					        
    ACCNO:   A03384						        
  TITLE:     Federally Chartered Corporation: Review of the Financial 
Statement Audit Reports for the Naval Sea Cadet Corps for 2000	 
and 1999							 
     DATE:   05/17/2002 
  SUBJECT:   Accounting standards				 
	     Audit reports					 
	     Federal corporations				 
	     Financial statement audits 			 
	     Reporting requirements				 

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GAO-02-760R
     
GAO- 02- 760R Naval Sea Cadet Corps

United States General Accounting Office Washington, DC 20548

May 17, 2002 The Honorable F. James Sensenbrenner, Jr. Chairman, Committee
on the Judiciary House of Representatives Subject: Federally Chartered
Corporation: Review of the Financial Statement Audit Reports for the Naval
Sea Cadet Corps for 2000 and 1999 Dear Mr. Chairman:

As requested, we reviewed the audit reports covering the financial
statements of the Naval Sea Cadet Corps, a federally chartered corporation,
for the year ended December 31, 2000 and 1999. 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

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
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, and reviewed the
auditors? reports. We also held limited discussions with the corporation?s
auditors regarding potential enhancements that could be made to the
corporation?s financial reporting. However, we did not review

the auditors? working papers, and we are not rendering an audit opinion. Our
review disclosed no reportable instances of noncompliance with the financial
reporting requirements of the law.

GAO- 02- 760R Naval Sea Cadet Corps Page 2 The audit reports included the
auditors? opinions that the financial statements of the

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

Sincerely yours, Jeanette M. Franzel Acting Director Financial Management
and Assurance

w/ o Enclosures (194103)
*** End of document. ***