Financial Audits: The Vast Majority of Executive Branch Entities 
Included in the Federal Budget Are Statutorily Required to Have  
Their Financial Statements Audited (30-SEP-05, GAO-05-1024R).	 
                                                                 
The Chief Financial Officers Act of 1990 (CFO Act), as expanded  
by the Government Management Reform Act of 1994, requires 24	 
major executive branch departments and agencies to prepare annual
financial statements and have them audited. The Accountability of
Tax Dollars Act of 2002 (ATD Act) extended this requirement to	 
most executive agencies not explicitly subject to the CFO Act,	 
unless they received a waiver or exemption from the Director of  
the Office of Management and Budget (the Director). Further,	 
chapter 91 of title 31 of the United States Code, commonly	 
referred to as the Government Corporation Control Act, and	 
certain federal agencies' enabling legislation also require	 
annual financial statement audits. Given the importance of	 
timely, reliable, and useful financial information in assessing  
the overall financial management of the government, Congress	 
asked us to identify executive branch entities that are not	 
subject to the requirements of preparing annual financial	 
statements and having them audited. In addition, Congress was	 
interested in knowing certain budget information related to	 
executive branch entities covered by the ATD Act that had	 
received an exemption or waiver from the Director for fiscal	 
years 2003 and 2004. This report summarizes the information	 
provided during our June 27, 2005, briefing to congressional	 
staff. Based on request letters and subsequent discussions with  
congressional staff, our objectives were to determine (1) which  
executive branch entities had received an exemption or waiver	 
from the Director for preparing fiscal years 2003 and 2004	 
financial statements and having them audited in accordance with  
the ATD Act, (2) the amount of net budget authority and net	 
outlays for these entities, and (3) which executive branch	 
entities other than those subject to the CFO Act, ATD Act,	 
Government Corporation Control Act, and enabling legislation do  
not annually prepare financial statements and have them audited. 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-05-1024R					        
    ACCNO:   A38881						        
  TITLE:     Financial Audits: The Vast Majority of Executive Branch  
Entities Included in the Federal Budget Are Statutorily Required 
to Have Their Financial Statements Audited			 
     DATE:   09/30/2005 
  SUBJECT:   Federal agencies					 
	     Federal law					 
	     Federal legislation				 
	     Financial statement audits 			 
	     Financial statements				 
	     Waivers						 
	     Executive agencies 				 
	     Reporting requirements				 

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GAO-05-1024R

United States Government Accountability Office Washington, DC 20548

September 30, 2005

Congressional Requesters

Subject: Financial Audits: The Vast Majority of Executive Branch Entities
Included in the Federal Budget Are Statutorily Required to Have Their
Financial Statements Audited

The Chief Financial Officers Act of 1990 (CFO Act),1 as expanded by the
Government Management Reform Act of 1994,2 requires 24 major executive
branch departments and agencies to prepare annual financial statements and
have them audited. The Accountability of Tax Dollars Act of 2002 (ATD Act)
extended this requirement to most executive agencies not explicitly
subject to the CFO Act, unless they received a waiver or exemption from
the Director of the Office of Management and Budget (the Director).3
Further, chapter 91 of title 31 of the United States Code, commonly
referred to as the Government Corporation Control Act, and certain federal
agencies' enabling legislation also require annual financial statement
audits.

Given the importance of timely, reliable, and useful financial information
in assessing the overall financial management of the government, you asked
us to identify executive branch entities that are not subject to the
requirements of preparing annual financial statements and having them
audited.. In addition, you were interested in knowing certain budget
information related to executive branch entities covered by the ATD Act
that had received an exemption or waiver from the Director for fiscal
years 2003 and 2004. This report summarizes the information provided
during our June 27, 2005, briefing to your staff. The enclosed briefing
slides and table highlight the results of our work and the information
provided at the briefing.

Based on your request letters and subsequent discussions with your staff,
our objectives were to determine (1) which executive branch entities had
received an exemption or waiver from the Director for preparing fiscal
years 2003 and 2004 financial statements and having them audited in
accordance with the ATD Act, (2) the amount of net budget authority and
net outlays for these entities, and (3) which executive branch entities
other than those subject to the CFO Act, ATD Act, Government Corporation
Control Act, and enabling legislation do not annually prepare financial
statements and have them audited. Such other entities include

1Pub. L. No. 101-576, 104 Stat. 2838 (Nov. 15, 1990). 2Pub. L. No.
103-356, 108 Stat. 3410 (Oct. 13, 1994). 3Pub. L. No. 107-289, 116 Stat.
2049 (Nov. 7, 2002); see 31 U.S.C. S: 3515.

                 GAO-05-1024R Federal Entities Financial Audits

temporary commissions, task forces, advisory boards, and other special
purpose entities.

When performing our work, we (1) made inquiries to personnel from various
federal agencies, including the Office of Management and Budget (OMB) and
the General Services Administration (GSA),4 as well as personnel from
selected ATD Act agencies and federal commissions not currently required
to prepare financial statements and have them audited; (2) reviewed the
CFO Act, the ATD Act, the Government Corporation Control Act, and enabling
legislation requiring certain federal entities to prepare financial
statements annually and have them audited; (3) obtained and analyzed the
OMB letters that notified the required congressional committees of the
names of the executive branch agencies for which the Director granted
waivers or exemptions from having to prepare financial statements and
having them audited for fiscal years 2003 and 2004; and (4) obtained and
summarized certain net budget authority and net outlays reported in the
Budget of the United States Government, Fiscal Years 2006 and 2005
Appendices (federal budget). We requested comments on a draft of this
report from the Chief of the Financial Standards and Grants Branch at OMB
and a Committee Management Specialist at GSA. We performed our work from
January 2005 through June 2005 in accordance with U.S. generally accepted
government auditing standards.

In summary, we determined that almost 94 percent of the executive branch
entities included in the federal budget are statutorily required to have
their financial statements audited. Looking at the federal government as a
whole, we determined that about 83 percent of federal entities (including
the legislative and judicial branches) included in the federal budget are
statutorily required to have their financial statements audited.5 To put
this in perspective to federal spending, in fiscal year 2004, federal
entities' reported net outlays6 totaled about $2.797 trillion, of which
approximately $2.784 trillion, or about 99.5 percent, was related to
federal entities whose fiscal year 2004 financial statements were
subjected to audit.7

The ATD Act provided the Director with the authority to waive entities
from having to prepare financial statements and having them audited for
fiscal years 2002 and 2003, the initial phase in period of the act.8 In
addition, beginning with fiscal year 2002, the Director could exempt an
ATD Act agency if the total budget authority of the agency for the fiscal
year does not exceed $25 million and if the Director determines that
requiring annual audited financial statements for the agency with respect
to the fiscal year is not warranted due to the absence of risks associated
with the agency's operations, the agency's demonstrated performance, or
other factors

4GSA is responsible for developing regulations and guidance and
maintaining data for advisory
committees as defined by and subject to the Federal Advisory Committee
Act, as amended. It also
provides support services, including accounting services, to various
commissions and boards.
5Federal entities include executive, legislative, and judicial branch
entities. Seven government
sponsored enterprises and an additional entity funded from Federal Home
Loan banks' contributions,
although statutorily required to be audited, are not included in the
federal budget and therefore are not
included in this report.
6Net outlays represent gross outlays net of offsetting collections.
7Certain federal entities, although subject to audit, received disclaimers
of opinion on their fiscal year
2004 financial statements.
8Sections 2(a)(1)(c) and (b)(1) of the ATD Act.

that the Director considers relevant.9 As a result, we found that
primarily due to the expiration of the Director's authority to waive the
requirements of the ATD Act, for fiscal year 2004, the Director granted
exemptions to 12 ATD Act agencies with net outlays totaling approximately
$30 million. By comparison, 21 ATD Act agencies were granted exemptions or
waivers for fiscal year 2003 with net outlays totaling about $1.669
billion. Enclosure II documents which federal executive branch entities
were granted waivers or exemptions from the Director and the amount of net
budget authority and net outlays for these entities.

Aside from these 12, another 9 agencies with net outlays totaling about
$521 million did not prepare and have audited financial statements for
fiscal year 2004. Their reasons varied. However, officials for 5 of the 9
agencies stated that they will prepare and have audited financial
statements for fiscal year 2005. Of the remaining 4, one official
expressed the view that his agency is exempt from the ATD Act, one stated
that it is not cost effective for it to prepare financial statements and
have them audited, one has already requested an exemption from the
Director for fiscal year 2005, and one stated that it plans to request an
exemption for fiscal year 2005.

In addition, we found that the timing of when the Director notifies
certain congressional committees of the ATD Act agencies exempted from
preparing financial statements and having them audited may not be optimal
for congressional consideration in its decision making and oversight. The
ATD Act is silent on when, other than annually, OMB should provide
Congress with a list of executive branch agencies exempted from preparing
financial statements and having them audited. For fiscal years 2003 and
2004, OMB's letters related to waivers or exemptions were provided to
Congress after the end of each fiscal year subject to audit.

Based on inquiries to OMB and others, we are not aware of any
comprehensive list or database of other executive branch entities that
receive federal funding. Such other entities include temporary
commissions, task forces, and advisory boards. However, based on the
limited information available, we were able to determine that the costs
related to these types of entities are primarily administrative, such as
travel, payroll, rent, and procurements, and may or may not be covered by
separate appropriations. For example, we noted that entities subject to
the Federal Advisory Committee Act included committees, boards, and
councils that generally do not receive separately allocated budgets;
therefore, the costs reported would likely be included in the costs of the
departments, agencies, or bureaus involved.10 As a result, such costs
could be subjected to audit as part of the annual audits of those
entities' financial statements.

Finally,. the Federal Accounting Standards Advisory Board (FASAB)11 is
currently considering undertaking a project that would, among other
things, reconsider the definition of a federal entity and address criteria
and possible disclosures relative to

9Sections 2(a)(4) of the ATD Act.
10GSA's fiscal year 2004 Federal Advisory Committee Act database, as of
May 2005, reported 944
advisory committees with total costs of about $300 million.
11The Federal Accounting Standards Advisory Board was established by the
Secretary of the Treasury,
the Director of OMB, and the Comptroller General in October 1990. It is
responsible for promulgating
accounting standards for the United States government. These standards are
recognized as generally
accepted accounting principles (GAAP) for the federal government.

entities not considered federal entities under Statement of Federal
Financial Accounting Concepts No. 2, Entity and Display,12 but which
present significant financial or other accountability issues for the
federal government. Such a project

13

could identify special purpose and other entities funded by the federal
government.

OMB and GSA officials orally agreed with the matters discussed in this
report. In response to an OMB suggestion, we modified the report to
include the percentage of executive branch agencies statutorily required
to have their financial statements audited.

We are sending copies of this report to other congressional committees,
the Director of OMB, the Administrator of GSA, and other interested
parties. Copies will be made available to others upon request. This report
is also available at no charge on GAO's Web site at www.gao.gov. We look
forward to continuing to work with your staff to help improve financial
management in the federal government. If you have any questions about the
contents of this report, please contact me at (202) 512-3406.

Gary T. Engel
Director
Financial Management and Assurance

Enclosure - 2

12In FASAB's current exposure draft, Technical Agenda Options, it is noted
that in SFFAC 2, FASAB
established concepts for identifying what components to include in
reporting entities.
13Such as federally funded research and development centers and public
private partnerships.

List of Congressional Requesters

The Honorable Tom Coburn, Chairman
The Honorable Thomas R. Carper, Ranking Minority Member
Subcommittee on Federal Financial Management, Government Information, and
International Security
Committee on Homeland Security and Governmental Affairs
United States Senate

The Honorable Daniel K. Akaka, Ranking Minority Member
Subcommittee on Oversight of Government Management, the Federal Workforce,
and
the District of Columbia
Committee on Homeland Security and Governmental Affairs
United States Senate

The Honorable Tom Davis, Chairman
The Honorable Henry A. Waxman, Ranking Minority Member
Committee on Government Reform
House of Representatives

The Honorable Todd Platts, Chairman
Subcommittee on Government Management, Finance and Accountability
Committee on Government Reform
House of Representatives

Financial Audits: The Vast Majority of Executive Branch Entities Included in the
Federal Budget Are Statutorily Required to Have Their Financial Statements
                                    Audited

                          Briefing to the Staff of the
            Subcommittee on Federal Financial Management, Government
       Information, and International Security, Senate Homeland Security
                       and Governmental Affairs Committee
        Subcommittee on Oversight of Government Management, the Federal
       Workforce, and the District of Columbia (Ranking Minority Member),
          Senate Homeland Security and Governmental Affairs Committee
                       House Government Reform Committee
       Subcommittee on Government Management, Finance and Accountability,
                       House Government Reform Committee

                                 June 27, 2005

                                       1

                               Table of Contents

o  Introduction

o  Objectives

o  Results in Brief

o  Scope and Methodology

o  Results of GAO's Work

o  Related Initiative

                                       2

                                  Introduction

o 	The Chief Financial Officers Act of 1990 (CFO Act), as expanded by the
Government Management Reform Act of 1994, requires 24 major executive
departments and agencies to prepare financial statements annually and have
them audited.

o 	The Accountability of Tax Dollars Act of 2002 (ATD Act) extended the
requirement to prepare financial statements annually and have them audited
to most executive agencies not subject to the CFO Act, unless waived or
exempted by the Director of the Office of Management and Budget (OMB).

o 	Chapter 91 of title 31 of the United States Code, commonly referred to
as the Government Corporation Control Act, requires government
corporations to prepare and submit audited financial statements in
accordance with U.S. generally accepted government auditing standards.

o 	Some federal agencies' enabling legislation requires annual audits
(e.g., the American Battle Monuments Commission).

o 	You requested that we perform a study of executive branch entities that
currently are not required to prepare financial statements annually and
have them audited. This study was also to provide certain budget
information on federal entities covered by the ATD Act that had received
an exemption or waiver from the Director of OMB for fiscal years 2003 and
2004.

                                       3

                                   Objectives

o 	Based on the request letters received and subsequent discussions with
the related committee and subcommittee staff, we made inquiries to
personnel from various federal agencies, including OMB, the General
Services Administration (GSA),1 and ATD Act agencies, as well as personnel
from selected commissions not currently required to prepare financial
statements and have them audited, to determine

o 	which executive branch entities had received an exemption or waiver
from the Director of OMB for preparing fiscal years 2003 and 2004
financial statements and having them audited in accordance with the ATD
Act,

o  the amount of net budget authority and net outlays for these entities,
and

o 	which executive branch entities other than those subject to the CFO
Act, ATD Act, Government Corporation Control Act, and enabling legislation
do not annually prepare financial statements and have them audited. (Such
other entities include temporary commissions, task forces, advisory
boards, and other special purpose entities.)

1 GSA is responsible for developing regulations and guidance and
maintaining data for advisory committees as defined by and subject to the
Federal Advisory Committee Act, as amended. It also provides support
services, including accounting services, to various commissions and
boards.

                                       4

                                Results in Brief

o 	Almost 94 percent of executive branch entities included in the federal
budget are statutorily required to have their financial statements
audited.

o 	About 83 percent of federal entities (including legislative and
judicial branches) included in the federal budget are statutorily required
to have their financial statements audited.

o 	Reported net outlays for federal entities in fiscal year 2004 totaled
about $2.797 trillion. Of this amount, approximately $2.784 trillion or
about 99.5 percent was related to federal entities whose fiscal year 2004
financial statements were subjected to audit.

o 	For fiscal year 2003, the Director of OMB granted waivers or exemptions
to 21 ATD Act agencies, with net budget authority totaling about $1.916
billion and net outlays totaling approximately $1.669 billion.

o 	For fiscal year 2004, the Director of OMB granted exemptions to 12 ATD
Act agencies, with net budget authority totaling about $26 million and net
outlays totaling approximately $30 million. In addition, for fiscal year
2004, 9 ATD Act agencies that did not receive an exemption from the
Director of OMB did not prepare financial statements and have them audited
for various reasons. Reasons provided by agency officials included the
inability to prepare the fiscal year 2004 financial statements as well as
the view of one agency official that it is not cost effective to prepare
financial statements and have them audited.

                                       5

                          Results in Brief (continued)

o 	Five of the nine agencies stated that for fiscal year 2005 they will
prepare financial statements and have them audited. The remaining four
agencies do not plan to prepare financial statements and have them audited
for fiscal year 2005.

o 	Based on inquiries to OMB and others, we are not aware of a
comprehensive list or database of other executive branch entities,
including temporary commissions, taskforces, advisory boards, and other
special purpose entities, that receive federal funding.The limited
information that was readily available shows that costs related to other
entities such as commissions, task forces, and advisory boards, are
primarilyadministrative, including travel, payroll, rent, and procurements
and may or may not be covered by separate appropriations.

o 	The Federal Accounting Standards Advisory Board (FASAB) is currently
consideringundertaking a project which would, among other things,
reconsider the definition of a federal entity and address criteria and
possible disclosures relative to entities not considered federal entities
under Statement of Federal Financial Accounting Concepts(SFFAC) No. 2,
Entity and Display, but which present significant financial or other
accountability issues for the federal government.

                                       6

                             Scope and Methodology

o  To accomplish our objectives, we

o 	reviewed the CFO Act, the ATD Act, the Government Corporation Control
Act, and enabling legislation requiring certain federal entities to
prepare financial statements annually and have them audited;

o 	obtained and analyzed the OMB letters which notified the required
congressional committees of the names of the executive branch agencies for
which the Director of OMB granted waivers or exemptions from having to
prepare financial statements and having them audited in accordance with
the ATD Act for fiscal years 2003 and 2004;

o 	obtained and summarized certain net budget authority and net outlays
reported in the Budget of the United States Government, Fiscal Years 2006
and 2005 Appendices (federal budget);

o 	held discussions with various federal agency officials, including OMB,
GSA, and ATD Act agencies, as well as personnel from selected commissions
not currently required to prepare financial statements and have them
audited; and

o 	performed our work from January 2005 through June 2005 in accordance
with U.S. generally accepted government auditing standards.

                                       7

                             Results of GAO's Work

o 	Almost 94 percent of executive branch entities included in the federal
budget are statutorily required to have their financial statements
audited.

o 	About 83 percent of federal entities (including legislative and
judicial branches) included in the federal budget are statutorily required
to have their financial statements audited.

(See table on page 14.)

                                       8

                       Results of GAO's Work (continued)

o 	Reported net outlays for federal entities in fiscal year 2004 totaled
about $2.797 trillion. Of this amount, approximately $2.784 trillion or
about 99.5 percent was related to federal entities included in the federal
budget whose fiscal year 2004 financial statements were subjected to
audit.

(See table on page 16.)

                                       10

                       Results of GAO's Work (continued)

o 	In accordance with the ATD Act, the Director of OMB may exempt a
covered executive agency from the act's requirements if both of the
following criteria are met:

o 	The total amount of budget authority available to the agency for the
fiscal year does not exceed $25 million.

o 	The Director of OMB determines that requiring an annual audited
financial statement for the agency with respect to the fiscal year is not
warranted due to the absence of risks associated with the agency's
operations, the agency's demonstrated performance, or other factors that
the Director considers relevant.

o 	We developed a list of ATD Act agencies for which the Director of OMB
granted waivers or exemptions for fiscal years 2003 and 2004 and the
reported net budget authority and net outlays of those agencies.

o 	For fiscal year 2003, the Director of OMB granted waivers or exemptions
to 21 ATD Act agencies, with net budget authority totaling about $1.916
billion and net outlays totaling approximately $1.669 billion.

o 	For fiscal year 2004, the Director of OMB granted exemptions to 12 ATD
Act agencies, with net budget authority totaling about $26 million and net
outlays totaling approximately $30 million. Three of these 12 agencies
were also granted waivers or exemptions in fiscal year 2003.

                                       12

                       Results of GAO's Work (continued)

o 	In addition, for fiscal year 2004, nine ATD Act agencies that did not
receive an exemption from the Director of OMB did not prepare financial
statements and have them audited.

o 	Five of these nine agencies stated that for fiscal year 2005 they will
prepare financial statements and have them audited.

o 	The remaining four agencies do not plan to prepare financial statements
and have them audited for fiscal year 2005.

o  One entity has requested an exemption from OMB.

o 	One entity plans to request an exemption from OMB for fiscal year 2005
and prepare financial statements and have them audited for fiscal year
2006.

o  One entity said it believes it is exempt from the ATD Act.

o 	One entity expressed the view that it is not cost effective to prepare
financial statements and have them audited.

                                       13

                       Results of GAO's Work (continued)

o 	The ATD Act is silent on when, other than annually, OMB should provide
the Congress with a list of executive branch agencies the Director of OMB
has exempted from having to prepare financial statements and having them
audited. Letters related to waivers or exemptions for fiscal years 2004
and 2003 were provided to the Congress after the end of each fiscal year.

o 	On October 23, 2003, OMB notified the required committees of the
Congress of the names of the executive branch agencies for which OMB had
provided waivers or exemptions for fiscal year 2003.

o 	On November 15, 2004, OMB notified the required committees of the
Congress of the names of the executive branch agencies that OMB had
provided exemptions for fiscal year 2004.

                                       14

                       Results of GAO's Work (continued)

o 	Based on inquiries to OMB and others, we are not aware of a
comprehensive list or database of other executive branch entities,
including temporary commissions, task forces, advisory boards, and other
special purpose entities, that receive federal funding.

o 	The limited information that was readily available shows that costs
related to entities such as commissions, task forces, and advisory boards
are primarily administrative, including travel, payroll, rent, and
procurements, and may or may not be covered by separate appropriations
(e.g., earmark or line item).

o 	The types of entities subjected to the Federal Advisory Committee Act,
as amended (FAC Act) included committees, boards, and councils. According
to a GSA official responsible for obtaining FAC Act data, these committees
generally do not receive separately allocated budgets and the costs
reported would likely be included in other reporting done by the agencies
involved.

o 	Costs related to such entities generally would be rolled up into the
costs of the related departments, agencies, or bureaus and would likely be
subjected to audit as part of those entities' financial statements.

o 	The General Services Administration's fiscal year 2004 FAC Act database
as of May 2005 reported that there were 944 advisory committees and that
their costs totaled about $300 million.

                                       15

                               Related Initiative

o 	FASAB is currently considering undertaking a project that would, among
other things, reconsider the definition of a federal entity, and address
criteria and possible disclosures relative to entities not considered
federal entities under SFFAC No. 2, Entity and Display, but which present
significant financial or other accountability issues for the federal
government.

                                       16

Enclosure II Enclosure II

Federal Entities for Which the Director of OMB Granted Waivers or
Exemptions from the Accountability of Tax Dollars Act's Audit Requirements
for FY 2003 or FY 2004 (dollars in millions)

                FY 2003                                     
                FY 2004                                     
                Year                                 
                waived a                             
                or                                   
                exempted  FY 2003 FY 2004 FY 2005 FY FY 2003 FY 2004 FY 2005 FY
                b         2006 Net budget authorityc 2006 Net outlaysc
 Broadcasting                                                                    
Board of                                                              
Governors     X         $541  $581   $591    $652   $517  $653   $608    $643
    Central                                                                      
 Intelligence                                                            
    Agency       X          223   226    239     245    222   226    239     245
Commodity                                                                     
Futures Trading                                                          
  Commission     X           85    89     94      99     83    92     94      98
Court Services                                                                   
 and Offender                                                            
  Supervision                                                            
Agency for the                                                           
  District of                                                            
Columbia      X          154   167    179     203    140   167    192     198
Defense Nuclear                                                                  
  Facilities                                                             
 Safety Board    X           19    20     20      22     20    21     20      22
    Federal                                                                      
Election                                                              
  Commission     X           50    50     52      55     46    50     56      61
 Federal Labor                                                                   
Relations                                                             
Authority     X           29    29     25      25     27    26     25      25
    Federal                                                                      
Maritime                                                              
  Commission     X           17    18     19      20     17    18     19      20
  Japan-U.S.                                                                     
  Friendship                                                             
  Commission     X    X       3     2      3       3      2     3      3       3
National                                                                      
 Archives and                                                            
    Records                                                              
Administration   X          251   307    320     315    301   307    324     314
National                                                                      
 Endowment for                                                           
the Humanities   X          126   135    138     138    119   127    133     142
National Labor                                                                   
Relations Board  X          237   243    250     252    231   242    250     251
  Peace Corps    X          298   310    319     347    310   306    328     342 
Securities and                                                                   
Exchange                                                              
 Commission d    X        (283) (700)  (950) (1,278)  (532) (685)  (942) (1,256)
Selective                                                                     
Service System   X           26    26     26      26     26    23     26      27
U.S. Commission                                                                  
    for the                                                              
Preservation of                                                          
America's                                                             
Heritage Abroad  X    X       L     L      L       L      L     L      L       L
U.S. Commission                                                                  
 of Fine Arts    X    X       8     8      9       9      8     8      9       9
U.S. Commission                                                                  
on Civil Rights  X            9     9      9       9      9     9      9       9
 U.S. Consumer                                                                   
Product Safety                                                           
  Commission     X           57    60     62      62     59    60     62      62
     U.S.                                                                        
 International                                                           
     Trade                                                               
  Commission     X           54    57     61      65     52    54     60      65
U.S. Office of                                                                   
Special Counsel  X           12    14     15      15     12    13     15      15
Barry M.                                                                         
Goldwater                                                                
Scholarship and                                                          
Excellence in                                                            
Education                                                                
Foundation            X       4     4      4       4      3     3      5       4
  Christopher                                                                    
Columbus                                                              
  Fellowship                                                             
  Foundation          X       0     0      1       1      1     1      1       1
Harry S. Truman                                                                  
Memorial                                                              
  Scholarship                                                            
  Trust Fund          X       3     3      3       3      3     4      3       3
 Marine Mammal                                                                   
  Commission          X       3     3      2       2      2     3      2       2
U.S. Commission                                                                  
on Ocean Policy                                                          
       e              X       2     0      0       0      3     3      1       0
     U.S.                                                                        
  Interagency                                                            
  Council on                                                             
 Homelessness         X       2     2      2       2      1     1      2       2
 U.S. National                                                                   
 Commission on                                                           
 Libraries and                                                           
  Information                                                            
    Science           X       1     1      1       1      1     1      1       1
 U.S. Nuclear                                                                    
Waste Technical                                                          
 Review Board         X       3     3      3       4      3     3      3       4
  White House                                                                    
 Commission on                                                           
 the National                                                            
Moment of                                                             
  Remembrance         X       L     L      L       L      L     L      L       L
Total of                                                                      
waived/exempted                                                          
  in FY 2003     21      $1,916       $1,481  $1,284 $1,669       $1,530  $1,295
Total of                                                                      
exempted in FY                                                           
     2004            12           $26    $28     $29          $30    $30     $29

Source: Office of Management and Budget and the Budget of the United
States Government, Fiscal Year 2006, appendix and Fiscal Year 2005,
appendix. As reported in the Budget of the United States Government,
fiscal years 2003 and 2004 amounts are actuals; fiscal year 2005 amounts
are estimates; and fiscal year 2006 amounts are the President's request.

Legend: L = Amounts in individual accounts for these other independent
agencies are below the million-dollar reporting threshold and they are
consolidated into a single set of schedules under Other Commissions and
Boards in the Budget of the United States Government. The Other
Commissions and Boards account presents data on several small independent
commissions and other entities on a consolidated basis.

a Waiver - Under sections 2 (a)(1)(c) and (b)(1) of the Accountability of
Tax Dollars Act of 2002 (ATD Act), the Director of the Office of
Management and Budget (OMB) could waive entities from having to prepare
financial statements and having them audited for fiscal years 2002 and
2003.

b Exemption - Under section 2(a)(4) of the ATD Act, the Director of OMB
may exempt a covered executive agency from the requirements of the ATD Act
in any fiscal year if (1) the total amount of budget authority available
to the agency for the fiscal year does not exceed $25 million, and (2) the
Director determines that requiring an annual audited financial statement
for the agency with respect to the fiscal year is not warranted due to the
absence of risks associated with the agency's operations, the agency's
demonstrated performance, or other factors that the Director considers
relevant.

c Budgetary totals represent gross budget authority and gross outlays net
of offsetting collections.

d Negative balances represent the amount of offsetting collections (cash)
in excess of gross budget authority and gross outlays.

e On September 20, 2004, the U.S. Commission on Ocean Policy fulfilled its
mandate to submit recommendations for a coordinated and comprehensive
national ocean policy to the President and the Congress.

(198393)

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GAO-05-1024R Federal Entities Financial Audits
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