EXECUTIVE SUMMARY:
We audited the statements of financial position of the Public Health Service,
Service and Supply Fund (the Fund), a fund within the Department of Health and
Human Services, and the related statements of operations and changes in net
position (the "Principal Financial Statements") as of and for the
years ended September 30, 1995 and 1994. Our audits were performed in accordance
with generally accepted auditing standards Government Auditing Standards, issued
by the Comptroller General, and Office of Management and Budget (OMB) Bulletin
93-06, "Audit Requirements for Federal Financial Statements" and included
related tests of the financial reporting, internal control structure policies
and procedures, and of compliance with laws and regulations. Our report on the
financial statements and our reports and findings regarding the internal control
structure and compliance with laws and regulations follow this summary. This
report also includes a description of management's responsibilities, of our
responsibilities under the above standards and guidance, and of our methodologies
for fulfilling these responsibilities.
In summary, we found: