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. ***