Federally Chartered Corporation: Review of the Financial	 
Statement Audit Reports for the National Federation of Music	 
Clubs for Fiscal Year 2002 (10-OCT-03, GAO-04-25R).		 
                                                                 
GAO reviewed the audit reports covering the financial statements 
of the National Federation of Music Clubs, for fiscal year 2002. 
GAO found no reportable instances of noncompliance. The audit	 
reports included the auditors' opinion that the financial	 
statements of the corporation were presented fairly in accordance
with generally accepted accounting principles.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-04-25R 					        
    ACCNO:   A08691						        
  TITLE:     Federally Chartered Corporation: Review of the Financial 
Statement Audit Reports for the National Federation of Music	 
Clubs for Fiscal Year 2002					 
     DATE:   10/10/2003 
  SUBJECT:   Accounting standards				 
	     Audit reports					 
	     Federal corporations				 
	     Financial statement audits 			 
	     Reporting requirements				 

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GAO-04-25R

United States General Accounting Office Washington, DC 20548

October 10, 2003

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 National Federation of Music Clubs for
Fiscal Year 2002

Dear Mr. Chairman:

As requested, we reviewed the audit report covering the financial
statements of the National Federation of Music Clubs, a federally
chartered corporation, for the fiscal year ended June 30, 2002. The
corporation's purpose is to encourage American musical activities. The
corporation advances its objectives by granting awards and scholarships,
publishing periodicals, and sponsoring various music-related activities.

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

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

o  obtain an annual financial audit by an independent public accountant.

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, and reviewed the
auditors' report. 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-04-25R National Federation of Music Clubs

The audit report included the auditors' opinion that the financial
statements of the
corporation were presented fairly on a modified cash basis of accounting.
We are
returning the audit report you sent with your letter.

Sincerely yours,

Jeanette M. Franzel
Director
Financial Management and Assurance

w/o Enclosure

(194331)

Page 2

GAO-04-25R National Federation of Music Clubs

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