This is the accessible text file for GAO report number GAO-03-822 entitled 'Financial Audit: Capitol Preservation Fund's Fiscal Years 2002 and 2001 Financial Statements' which was released on June 13, 2003. This text file was formatted by the U.S. General Accounting Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. 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Report to the Congress: June 2003: Financial Audit: Capitol Preservation Fund's Fiscal Years 2002 and 2001 Financial Statements: GAO-03-822: Letter: Auditor's Report: Opinion on Financial Statements: Consideration of Internal Control: Compliance with Laws and Regulations: Objectives, Scope, and Methodology: Commission Comments: Financial Statements: Statements of Financial Position: Statements of Activities: Statements of Cash Flows: Notes to Financial Statements: Letter June 13, 2003: 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, 2002, and 2001. It also discusses our consideration of the Fund's internal control and our tests of compliance with laws and regulations during fiscal year 2002. We conducted our audit 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 staffs of the Architect of the Capitol and the Library of Congress during our audit. We are sending copies of this report to the members of the Capitol Preservation Commission; the Honorable Emily J. Reynolds, Secretary of the Senate; the Honorable Jeffrey T. Trandahl, Clerk of the House of Representatives; the Honorable Alan M. Hantman, Architect of the Capitol; the Honorable James H. Billington, Librarian of Congress; and other interested parties. This report will also be available at no charge on the GAO Web site at http://www.gao.gov. If you or your staff have any questions concerning this report, please contact me at (202) 512-9406 or Shirley Abel, Assistant Director, at (202) 512-9516. You can also reach us by e-mail at franzelj@gao.gov or abels@gao.gov. Key contributors to this report were David Merrill and Joel Rodriguez. Jeanette M. Franzel Director Financial Management and Assurance: Signed by Jeanette M. Franzel: Auditor's Report 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, 2002, and 2001, and the related statements of activities and statements of cash flows for the fiscal years then ended. We found: * the financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles; * no material weaknesses in internal control over financial reporting (including safeguarding assets) and compliance with laws and regulations; and: * no 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 audit. 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, 2002, and 2001, 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 audit of the Fund's fiscal year 2002 financial statements, we considered the Fund's internal control over financial reporting and compliance.[Footnote 1] We did this to determine our procedures for auditing the financial statements, not to express an opinion on internal control over financial reporting and compliance. Accordingly, we do not express an opinion on internal control. However, for the controls we tested, we found no material weaknesses in internal controls over financial reporting (including safeguarding assets) and compliance. A material weakness is a condition in which the design or operation of internal control does not reduce to a relatively low level the risk that errors, fraud, or noncompliance in amounts that would be material in relation to the financial statements may occur and not be detected promptly by employees in the normal course of performing their duties. Our consideration of internal control 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 audit was not to provide an opinion on overall compliance with laws and regulations. Accordingly, we do not express such an opinion. Objectives, Scope, and Methodology: The management of the Capitol Preservation Commission is responsible for: * preparing the Fund's financial statements in conformity with U.S. generally accepted accounting principles; * establishing, maintaining, and assessing internal control to provide reasonable assurance that the objectives of internal control are met; and: * complying with applicable laws and regulations. We are responsible for: * obtaining reasonable assurance about whether the financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles; * obtaining a sufficient understanding of internal control over financial reporting and compliance with laws and regulations to plan the audit; and: * testing 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 significant estimates made by management, (3) evaluated the overall presentation of the financial statements and notes, (4) obtained an understanding of the design and operation of internal control related to financial reporting (including safeguarding assets) and compliance with laws and regulations and tested selected internal controls, and (5) tested compliance with selected provisions of the following laws: * Capitol Preservation Commission and Capitol Preservation Fund enabling legislation, 2 U.S.C. 2081-2086, and: * United States Capitol Visitor Center Commemorative Coin Act of 1999, Title II, Public Law 106-126. We did not test all internal controls relevant to the operations of the Capitol Preservation Fund. We limited our consideration to internal control over financial reporting and compliance with laws and regulations for the purpose of planning our audit. Because of inherent limitations in internal control, misstatements due to error or fraud, losses, or noncompliance may nevertheless occur and not be detected. We also caution that projecting our consideration of internal control to future periods is subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with controls may deteriorate. In addition, we caution that our internal control testing 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 year ended September 30, 2002. 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: Signed by Jeanette M. Franzel: May 2, 2003: [End of section] Financial Statements: [See PDF for image] [End of figure] [End of section] Statements of Financial Position: [See PDF for image] [End of figure] Statements of Activities: [See PDF for image] [End of figure] Statements of Cash Flows: [See PDF for image] [End of figure] Notes to Financial Statements: [See PDF for image] [End of figure] (194177): FOOTNOTES [1] The objectives of financial reporting control are to provide reasonable assurance that transactions are properly recorded, processed, and summarized to permit the preparation of the financial statements in conformity with U.S. generally accepted accounting principles, and assets are safeguarded against loss from unauthorized acquisition, use, or disposition. The objective of compliance control is to provide reasonable assurance that transactions are executed in accordance with laws governing the use of budget authority and other laws and regulations that could have a direct and material effect on the financial statements. GAO's Mission: The General Accounting Office, the investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability. 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