Financial Audit: Capitol Preservation Fund's Fiscal Years 2005	 
and 2004 Financial Statements (13-MAR-07, GAO-07-335).		 
                                                                 
GAO audited the statements of financial position of the Capitol  
Preservation Fund (the Fund) as of September 30, 2005, and 2004, 
and the related statements of activities and cash flows for the  
fiscal years then ended.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-335 					        
    ACCNO:   A66809						        
  TITLE:     Financial Audit: Capitol Preservation Fund's Fiscal Years
2005 and 2004 Financial Statements				 
     DATE:   03/13/2007 
  SUBJECT:   Audit reports					 
	     Auditing standards 				 
	     Financial statement audits 			 
	     Fund audits					 
	     Internal controls					 
	     Public visitor-centers				 
	     Reporting requirements				 
	     Capitol Preservation Fund				 

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GAO-07-335

   

     * [1]Report to the Congress

          * [2]March 2007

     * [3]Financial audit

          * [4]Capitol Preservation Fund's Fiscal Years 2005 and 2004
            Financial Statements

     * [5]Contents

          * [6]Opinion on Financial Statements
          * [7]Consideration of Internal Control
          * [8]Compliance with Laws and Regulations
          * [9]Objective, Scope, and Methodology
          * [10]Commission Comments

     * [11]Financial Statements

Report to the Congress

March 2007

FINANCIAL AUDIT

Capitol Preservation Fund's Fiscal Years 2005 and 2004 Financial
Statements

Contents

March 13, 2007
Letter

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, 2005, and 2004. It also discusses our consideration of the Fund's
internal controls and our tests of compliance with laws and regulations
during fiscal years 2005 and 2004. We conducted our audits 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 staff of the Architect of the Capitol
and the Library of Congress during our audits.

We are sending copies of this report to the members of the Capitol
Preservation Commission, the Secretary of the Senate, the Clerk of the
House of Representatives; the Architect of the Capitol, the Librarian of
Congress, and other interested parties.

If you or your staff have any questions concerning this report, please
contact me at (202) 512-9406 or by e-mail at [email protected] .
Contact points for our Offices of Congressional Relations and Public
Affairs may be found on the last page of this report. Key contributors to
this assignment were John Reilly, John Craig, Stephen Lawrence, and
Verginie Amirkhanian.

Jeanette M. Franzel
Director
Financial Management and Assurance

To the Members of the Capitol Preservation Commission

We have audited the statements of financial position of the Capitol
Preservation Fund (the Fund) as of September 30, 2005, and 2004, and the
related statements of activities and cash flows for the fiscal years then
ended. We found

othe financial statements are presented fairly, in all material respects,
in conformity with U.S. generally accepted accounting principles;

ono material weaknesses in the internal controls we tested over financial
reporting (including safeguarding assets) and compliance with laws and
regulations, although certain Fund-related internal controls at the
Library of Congress (the Library) need to be improved; and

ono 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 audits.

Opinion on Financial Statements

The financial statements and accompanying notes present fairly, in all
material respects, in conformity with U.S. generally accepted accounting
principles, the Capitol Preservation Fund's financial position as of
September 30, 2005, and 2004, and the results of its activities and its
cash flows for the fiscal years then ended.

Consideration of Internal Control

In planning and performing our audits of the Fund's fiscal years 2005 and
2004 financial statements, we considered the Fund's internal controls over
financial reporting and compliance.^1 We did this to determine our
procedures for auditing the financial statements, not to express an
opinion on internal control. Accordingly, we do not express an opinion on
internal control over financial reporting and compliance. However, our
work identified two reportable conditions^2 related to controls at the
Library associated with Fund-related financial services provided by the
Library to the Capitol Preservation Commission (the Commission). While not
considered material weaknesses,^3 we plan to report to the Library on the
need to improve its internal controls over Fund-related cash disbursements
and financial reporting. Our consideration and testing of internal
controls would not necessarily disclose all material weaknesses.

Compliance with Laws and Regulations

Our tests for compliance with selected provisions of laws and regulations
disclosed no instances of noncompliance that would be reportable under
U.S. generally accepted government auditing standards. However, the
objective of our audits was not to provide an opinion on overall
compliance with laws and regulations. Accordingly, we do not express such
an opinion.

Objective, Scope, and Methodology

The management of the Capitol Preservation Commission is responsible for

oensuring that the Fund's financial statements are prepared in conformity
with U.S. generally accepted accounting principles;

oestablishing, maintaining, and assessing internal control to provide
reasonable assurance that the objectives of internal control over
financial reporting and compliance are met; and

ocomplying with applicable laws and regulations.

We are responsible for

oobtaining reasonable assurance about whether the financial statements are
presented fairly, in all material respects, in conformity with U.S.
generally accepted accounting principles;

oobtaining a sufficient understanding of internal controls over financial
reporting and compliance with laws and regulations to plan the audits; and

otesting 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 any
significant estimates made by management; (3) evaluated the overall
presentation of the financial statements and notes; (4) obtained an
understanding of internal control related to financial reporting
(including safeguarding assets) and compliance with laws and regulations;
(5) tested selected internal controls; and (6) tested compliance with
selected provisions of the following laws:

oCapitol Preservation Commission and Capitol Preservation Fund enabling
legislation, 2 U.S.C. 2081-2086 and

oUnited States Capitol Visitor Center Commemorative Coin Act of 1999,
title II, Public Law 106-126.

Our consideration of internal controls over financial reporting and
compliance with laws and regulations was limited to gaining an
understanding of internal control needed to plan our audits for the
purpose of expressing an opinion on the financial statements. Our testing
of internal controls was limited to selected controls over financial
reporting and compliance. Because of inherent limitations in internal
controls, misstatements due to error or fraud, losses, or noncompliance
may nevertheless occur and not be detected. In addition, we caution that
our consideration and testing of internal controls 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 years ended September 30, 2005 and
2004. 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 Comments

We provided a draft of our report to representatives of the Capitol
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

January 3, 2007

Financial Statements

(194569)

*** End of document. ***