Summary

Pursuant to a legislative requirement, GAO provided information on an internal control matter presented in KPMG Peat Marwick LLP's auditors' report on the Schedule of Loans Receivable serviced by the Bureau of the Public Debt (BPD).

GAO noted that: (1) KMPG is responsible for the auditors' report and for the conclusion expressed therein; (2) the purpose of this letter is to advise BPD of an internal control matter included in the KPMG management letter; (3) the matter relates to procedures in place to ensure reasonableness of interest paid by federal entities on loans receivable; and (4) although this matter was not determined to be a material weakness, KPMG believes that it warrants the attention of management.