Federally Chartered Corporation: Financial Statement Audit Report
for the Fleet Reserve Association for Fiscal Years 2003 and 2002 
(10-JUN-05, GAO-05-502R).					 
                                                                 
GAO reviewed the audit reports covering the financial statements 
of the Fleet Reserve Association for fiscal years 2003 and 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-05-502R					        
    ACCNO:   A26318						        
  TITLE:     Federally Chartered Corporation: Financial Statement     
Audit Report for the Fleet Reserve Association for Fiscal Years  
2003 and 2002							 
     DATE:   06/10/2005 
  SUBJECT:   Financial statement audits 			 
	     Audit reports					 
	     Reporting requirements				 
	     Accounting standards				 
	     Federal corporations				 

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GAO-05-502R

United States Government Accountability Office Washington, DC 20548

June 10, 2005

The Honorable F. James Sensenbrenner, Jr.
Chairman
Committee on the Judiciary
House of Representatives

Subject: 	Federally Chartered Corporation: Financial Statement Audit
Report for the Fleet Reserve Association for Fiscal Years 2003 and 2002

Dear Mr. Chairman:

As requested, we read the audit report covering the financial statements
of the Fleet Reserve Association, a federally chartered corporation, for
the fiscal years ended December 31, 2003, and 2002. The corporation's
purposes are to assist members and their families who may be in urgent
need of assistance; assist in the recruitment of personnel for the United
States Navy, Marine Corps, and Coast Guard; and keep its members informed
of United States Navy, Marine Corps, and Coast Guard matters.

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,

o  obtain an annual financial audit by an independent public accountant,
and

o  	submit the auditor's report and the corporation's financial statements
to the Congress.

Our objective was to advise you of any matters in the report regarding
compliance with the financial reporting requirements of the law. In
carrying out our work, we read the corporation's financial statements and
the accompanying notes, performed certain analytical procedures related to
information presented in the financial statements, and read the auditor's
report. We did not identify any instance of noncompliance with the above
financial reporting requirements of the law.

We did not perform an audit or review the auditor's working papers, and we
are not rendering an audit opinion.

                     GAO-05-502R Fleet Reserve Association

The audit report included the auditor's opinion that the financial
statements of the
corporation were presented fairly in accordance with United States
generally
accepted accounting principles. We are returning the audit report you sent
with your
letter.

This letter is intended solely for your use and the use of the Committee
on the
Judiciary.

Sincerely yours,

Steven J. Sebastian
Director
Financial Management and Assurance

w/o Enclosure

(196041)

                  Page 2 GAO-05-502R Fleet Reserve Association

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