Financial Audit: Capitol Preservation Fund's Fiscal Years 2002
and 2001 Financial Statements (13-JUN-03, GAO-03-822).
GAO audited the financial statements of the Capital Preservation
Fund for fiscal years 2002 and 2001. GAO found that the financial
statements (1) were presented fairly in conformity with U.S.
generally accepted accounting principles, (2) contained no
material weaknesses in internal control over financial reporting
and compliance with laws and regulations, and (3) complied with
the provisions of laws and regulations tested.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-03-822
ACCNO: A07159
TITLE: Financial Audit: Capitol Preservation Fund's Fiscal Years
2002 and 2001 Financial Statements
DATE: 06/13/2003
SUBJECT: Auditing procedures
Auditing standards
Financial statement audits
Fund audits
Internal controls
Reporting requirements
Capital Preservation Fund
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GAO-03-822
A
To the Members of the Capitol Preservation Commission Audi Report or* s t
We have audited the statements of financial position of the Capitol
Preservation Fund (the Fund) as of September 30, 2002, and 2001, 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;
no material weaknesses in 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 Capitol Preservation Fund*s financial position as of
September 30, 2002, and 2001, and the results of its activities and its
cash flows for the fiscal years then ended.
Consideration of In planning and performing our audit of the Fund*s fiscal
year 2002 financial
statements, we considered the Fund*s internal control over financial
Internal Control
reporting and compliance. 1 We did this to determine our procedures for
auditing the financial statements, not to express an opinion on internal
control over financial reporting and compliance. Accordingly, we do not
1 The objectives of financial reporting control are to provide reasonable
assurance that transactions are properly recorded, processed, and
summarized to permit the preparation of the financial statements in
conformity with U. S. generally accepted accounting principles, and assets
are safeguarded against loss from unauthorized acquisition, use, or
disposition. The objective of compliance control is to provide reasonable
assurance that transactions are executed in accordance with laws governing
the use of budget authority and other laws and regulations that could have
a direct and material effect on the financial statements.
express an opinion on internal control. However, for the controls we
tested, we found no material weaknesses in internal controls over
financial reporting (including safeguarding assets) and compliance. A
material weakness is a condition in which the design or operation of
internal control
does not reduce to a relatively low level the risk that errors, fraud, or
noncompliance in amounts that would be material in relation to the
financial statements may occur and not be detected promptly by employees
in the normal course of performing their duties. Our consideration of
internal control would not necessarily disclose all material weaknesses.
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 management of the Capitol Preservation
Commission is responsible
Methodology for
preparing the Fund*s financial statements in conformity with U. S.
generally accepted accounting principles; establishing, maintaining, and
assessing internal control to provide
reasonable assurance that the objectives of internal control are met; and
complying with applicable laws and regulations. We are responsible for
obtaining reasonable assurance about whether the financial statements
are presented fairly, in all material respects, in conformity with U. S.
generally accepted accounting principles;
obtaining a sufficient understanding of internal control over financial
reporting and compliance with laws and regulations to plan the audit; and
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 (1) examined, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements and notes, (2) assessed the accounting principles used and
significant estimates made by management, (3) evaluated the overall
presentation of the financial statements and notes, (4) obtained an
understanding of the design and operation of internal control related to
financial reporting (including safeguarding assets) and compliance with
laws and regulations and tested selected internal controls, and (5) tested
compliance with selected provisions of the following laws: Capitol
Preservation Commission and Capitol Preservation Fund
enabling legislation, 2 U. S. C. 2081- 2086, and United States Capitol
Visitor Center Commemorative Coin Act of 1999,
Title II, Public Law 106- 126. We did not test all internal controls
relevant to the operations of the Capitol Preservation Fund. We limited
our consideration to internal control over financial reporting and
compliance with laws and regulations for the purpose of planning our
audit. 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
our consideration 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. In
addition, we caution that our internal control testing may not be
sufficient for other
purposes. We did not test compliance with all laws and regulations
applicable to the Capitol Preservation Fund. We limited our tests of
compliance to selected provisions of laws and regulations that we deemed
applicable to the Fund*s financial statements for the fiscal year ended
September 30, 2002. 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.
Commission We provided a draft of our report to representatives of the
Capitol Comments
Preservation Commission for their review and comment. The Commission*s
representatives agreed with the contents of our report. Jeanette M.
Franzel Director Financial Management and Assurance May 2, 2003
Financial Statements
Statements of Financial Position
Statements of Activities
Statements of Cash Flows
Notes to Financial Statements
(194177)
Report to the Congress
June 2003 FINANCIAL AUDIT Capitol Preservation Fund*s Fiscal Years 2002
and 2001 Financial Statements
GAO- 03- 822
Letter 1 Auditor*s Report 2
Opinion on Financial Statements 2 Consideration of Internal Control 2
Compliance with Laws and Regulations 3 Objectives, Scope, and Methodology
3 Commission Comments 5
Financial Statements 6 Statements of Financial Position 6
Statements of Activities 7 Statements of Cash Flows 8 Notes to Financial
Statements 9
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a
GAO United States General Accounting Office
Page i GAO- 03- 822 Capitol Preservation Fund
Contents
Page 1 GAO- 03- 822 Capitol Preservation Fund United States General
Accounting Office Washington, D. C. 20548
Page 1 GAO- 03- 822 Capitol Preservation Fund
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June 13, 2003 Let t er
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 Capitol Preservation Fund (the Fund) for the fiscal
years ended September 30, 2002, and 2001. It also discusses our
consideration of the Fund*s internal control and our tests of compliance
with laws and regulations during fiscal year 2002. We conducted our audit
pursuant to 2 U. S. C. 2084 and in accordance with U. S. generally
accepted government auditing standards. We appreciate the cooperation and
assistance of the Office of the Secretary of the Senate, the Office of the
Clerk of the House of Representatives, and the staffs of the Architect of
the Capitol and the Library of Congress during our audit. We are sending
copies of this report to the members of the Capitol
Preservation Commission; the Honorable Emily J. Reynolds, Secretary of the
Senate; the Honorable Jeffrey T. Trandahl, Clerk of the House of
Representatives; the Honorable Alan M. Hantman, Architect of the Capitol;
the Honorable James H. Billington, Librarian of Congress; and other
interested parties. This report will also be available at no charge on the
GAO Web site at http:// www. gao. gov.
If you or your staff have any questions concerning this report, please
contact me at (202) 512- 9406 or Shirley Abel, Assistant Director, at
(202) 512- 9516. You can also reach us by e- mail at franzelj@ gao. gov or
abels@ gao. gov. Key contributors to this report were David Merrill and
Joel Rodriguez.
Jeanette M. Franzel Director Financial Management and Assurance
Page 2 GAO- 03- 822 Capitol Preservation Fund United States General
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