Federal Research: Assessment of the Financial Audit for SEMATECH's
Activities in 1992 (Letter Report, 10/13/93, GAO/RCED-94-17).

In reviewing the audit of SEMATECH's 1992 financial statements, GAO
found no indication the Price Waterhouse's report on the internal
control structure or its report on compliance with laws and regulations
cannot be relied on.  SEMATECH is a U.S. semiconductor
manufacturer-Defense Department (DOD) consortium that seeks to advance
semiconductor manufacturing technology.  In January 1993, DOD began
providing advance payments to SEMATECH on a monthly instead of a
quarterly basis.  This procedure, adopted in response to an earlier GAO
recommendation, appears to provide enough working capital funds while
minimizing the amount of unexpended government funds that SEMATECH
holds.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-94-17
     TITLE:  Federal Research: Assessment of the Financial Audit for 
             SEMATECH's Activities in 1992
      DATE:  10/13/93
   SUBJECT:  Advance funding
             Defense industry
             Electronic equipment industry
             Audits
             Financial records
             Internal controls
             Compliance
             Accounting procedures
             Non-government enterprises
             Administrative costs

             
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