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entitled 'Financial Audit: Congressional Award Foundationís Fiscal 
Years 2008 and 2007 Financial Statements' which was released on May 15, 
2009. 

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United States Government Accountability Office: 
GAO: 

Report to the Chairman, Congressional Award Foundation: 

May 2009: 

Financial Audit: 

Congressional Award Foundationís Fiscal Years 2008 and 2007 Financial 
Statements: 

GAO-09-653: 

Contents: 

Letter: 

Auditorís Report: 

Opinion on Financial Statements: 

Opinion on Internal Control: 

Compliance with Laws and Regulations: 

Objectives, Scope, and Methodology: 

Foundationís Comments: 

Financial Statements: 

Statements of Financial Position: 

Statements of Activities: 

Statements of Cash Flows: 

Notes to Financial Statements: 

[End of section] 

United States Government Accountability Office: 
Washington, D.C. 20548: 

May 15, 2009: 

Mr. Paxton K. Baker: 
Chairman of the Board:
Congressional Award Foundation: 

Dear Mr. Baker: 

This report presents our opinion on the financial statements of the 
Congressional Award Foundation (the Foundation) for the fiscal years 
ended September 30, 2008, and 2007. These financial statements are the 
responsibility of the Foundation. This report also presents (1) our 
opinion on the effectiveness of the Foundationís related internal 
control as of September 30, 2008, and (2) the results of our tests of 
the Foundationís compliance during fiscal year 2008 with selected 
provisions of laws and regulations. We conducted our audit pursuant to 
section 107 of the Congressional Award Act, as amended (2 U.S.C. ß 
807), and in accordance with U.S. generally accepted government 
auditing standards. 

If you or your office have any questions concerning this report, please 
contact me at (202) 512-3406 or by e-mail at sebastians@gao.gov. 
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 report were Julie Phillips, Assistant Director; Liliam 
Coronado; Vivian Gutierrez; and Bethany Smith. 

Sincerely yours, 

Signed by: 

Steven J. Sebastian: 
Director: 
Financial Management and Assurance: 

[End of section] 

United States Government Accountability Office: 
Washington, D.C. 20548: 

Mr. Paxton K. Baker: 
Chairman of the Board:
Congressional Award Foundation: 

We have audited the accompanying statements of financial position of 
the Congressional Award Foundation (the Foundation) as of September 30, 
2008, and 2007, 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; 

* the Foundation had effective internal control over financial 
reporting (including safeguarding assets) and compliance with laws and 
regulations; and: 

* no reportable instances of noncompliance with 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 Foundation's assets, liabilities, and net 
position as of September 30, 2008, and 2007, and the results of its 
activities and its cash flows for the fiscal years then ended. 

Opinion on Internal Control: 

The Foundation maintained, in all material respects, effective internal 
control over financial reporting (including safeguarding assets) and 
compliance as of September 30, 2008, that provided reasonable assurance 
that misstatements, losses, or noncompliance material in relation to 
the financial statements would be prevented or detected on a timely 
basis. Our opinion is based on criteria established in the Standards 
for Internal Control in the Federal Government.[Footnote 1] 

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 Foundation's management is responsible for: 

* preparing the annual financial statements in conformity with U.S. 
generally accepted accounting principles; 

* establishing, maintaining, and assessing the Foundation's internal 
control to provide reasonable assurance that the Foundation's control 
objectives are met; and: 

* complying with applicable laws and regulations. 

We are responsible for obtaining reasonable assurance about whether (1) 
the financial statements are presented fairly, in all material 
respects, in conformity with U.S. generally accepted accounting 
principles and (2) management maintained effective internal control, 
the objectives of which are the following: 

* Financial reporting: Transactions are properly recorded, processed, 
and summarized to permit the preparation of financial statements in 
conformity with U.S. generally accepted accounting principles, and 
assets are safeguarded against loss from unauthorized acquisition, use, 
or disposition. 

* Compliance with laws and regulations: Transactions are executed in 
accordance with laws and regulations that could have a direct and 
material effect on the financial statements. 

We are also responsible for 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: 

* examined, on a test basis, evidence supporting the amounts and 
disclosures in the financial statements; 

* assessed the accounting principles used and significant estimates 
made by Foundation management; 

* evaluated the overall presentation of the financial statements and 
notes; 

* obtained an understanding of the Foundation and its operations, 
including its internal control related to financial reporting 
(including safeguarding assets) and compliance with laws and 
regulations; 

* tested relevant internal control over financial reporting (including 
safeguarding assets) and compliance and evaluated the design and 
operating effectiveness of internal control; and: 

* tested compliance with selected provisions of the Congressional Award 
Act, as amended. 

* We did not evaluate internal controls relevant to operating 
objectives, such as controls relevant to ensuring efficient operations. 
We limited our internal control testing to controls over financial 
reporting and compliance with laws and regulations. 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 evaluation 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. 

We did not test compliance with all laws and regulations applicable to 
the Foundation. We limited our tests of compliance to those provisions 
of laws and regulations that we deemed to have a direct and material 
effect on the financial statements for the fiscal years ended September 
30, 2008, and 2007. We caution that noncompliance may occur and not be 
detected by these 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. 

Foundation's Comments: 

We provided a draft of our report to Congressional Award Foundation 
officials for their review and comment. Foundation officials agreed 
with the content of our report. 

Signed by: 

Steven J. Sebastian: 
Director Financial Management and Assurance: 

May 11, 2009: 

[End of section] 

Financial Statements: 

Statements of Financial Position: 

The Congressional Award Foundation: 
Statements of Financial Position: 
As of September 30, 2008, and 2007: 

Assets: 

Cash and cash equivalents: 
2008: $120,691; 
2007: $15,937. 

Certificate of deposit: 
2008: [Empty]; 
2007: $59,610. 

Contributions receivable (note 3): 
2008: $137,400: 
2007: $132,600. 

Accounts receivable: 
2008: $9,820: 
2007: [Empty]. 

Prepaid expense: 
2008: $4,073: 
2007: $2,602. 

Congressional Award Fellowship Trust (note 4): 
2008: [Empty]; 
2007: $29,118. 

Equipment, furniture, and fixtures, net (note 5): 
2008: $21,812; 
2007: $29,355. 

Total assets: 
2008: $293,796: 
2007: $269,222. 

Liabilities and net assets: 

Accounts payable: 
2008: $5,764; 
2007: $14,662. 

Line of credit (note 6): 
2008: [Empty]; 
2007: $100,000. 

Accrued payroll, related taxes, and leave: 
2008: $14,170: 
2007: $7,430. 

Loan from National Director (note 7): 
2008: [Empty]; 
2007: $664. 

Liability for tax penalty and interest (note 8): 
2008: [Empty]; 
2007: $3,317. 

Capital lease liability (note 9); 
2008: $14,266; 
2007: $18,334. 

Total liabilities: 
2008: $34,200; 
2007: $144,407. 

Net assets: 

Unrestricted: 
2008: $239,630; 
2007: $102,058. 

Temporarily restricted (note 10): 
2008: $19,966; 
2007: $22,757. 

Total net assets: 
2008: $259,596; 
2007: $124,815. 

Total liabilities and net assets: 
2008: $293,796; 
2007: $269,222. 

The accompanying notes are an integral part of these financial 
statements. 

[End of table] 

Statements of Activities: 

The Congressional Award Foundation: 
Statements of Activities: 
For the Fiscal Years Ended September 30, 2008, and 2007: 

Changes in unrestricted net assets: 

Operating revenue and other support: 

Contributions: 
2008: $619,316; 
2007: $526,825. 

Contributions - In-kind (note 11): 
2008: $89,989; 
2007: $71,486. 

Program and other revenues: 
2008: $246,486; 
2007: $179,776. 

Interest and dividends: 
2008: $1,420; 
2007: $3,131. 

Net assets released from restrictions (note 10): 
2008: $2,792; 
2007: $2,704. 

Total operating revenue and other support: 
2008: $960,003; 
2007: $783,922. 

Operating expenses (note 12): 

Salaries, benefits, and payroll taxes: 
2008: $349,140; 
2007: $282,547. 

Program, promotion, and travel: 
2008: $49,454; 
2007: $38,886. 

Fund-raising expense: 
2008: $127,642; 
2007: $101,736. 

Costs of direct benefit to donors: 
2008: $13,135; 
2007: $9,768. 

Gold Award ceremony: 
2008: $142,134; 
2007: $111,998. 

Professional fees: 
2008: $63,635; 
2007: $52,736. 

Depreciation and amortization: 
2008: $7,543; 
2007: $4,853. 

Board of Directors expense: 
2008: [Empty]; 
2007: $1,062. 

Administrative and other expense: 
2008: $69,896; 
2007: $71,087. 

Total operating expenses: 
2008: $822,579; 
2007: $674,673. 

Subtotal: 
2008: $137,424; 
2007: $109,249. 

Other changes: 

Net unrealized investment losses: 
2008: [Empty]; 
2007: ($3,776). 

Net realized investment gains: 
2008: $149; 
2007: $13,569. 

Increase/(decrease) in unrestricted net assets: 
2008: $137,573; 
2007: $119,042. 

Changes in temporarily restricted net assets: 

Net assets released from restrictions (note 10): 
2008: ($2,792); 
2007: ($2,704). 

Decrease in temporarily restricted net assets: 
2008: ($2,792); 
2007: ($2,704). 

Increase/(decrease) in net assets: 
2008: $134,781; 
2007: $116,338. 

Net assets at beginning of year: 
2008: $124,815; 
2007: $8,477. 

Net assets at end of year: 
2008: $259,596; 
2007: $124,815. 

The accompanying notes are an integral part of these financial 
statements. 

Statements of Cash Flows: 

The Congressional Award Foundation: 
Statements of Cash Flows: 
For the Fiscal Years Ended September 30, 2008, and 2007: 

Cash flows from operating activities: 

Increase in net assets: 
2008: $134,781; 
2007: $116,338. 

Adjustments to reconcile change in net assets to net cash from 
operating activities: 

Depreciation and amortization: 
2008: $7,543; 
2007: $4,853. 

Net unrealized losses on investments: 
2008: [Empty]; 
2007: $3,776. 

Net realized gains on sale of investments: 
2008: ($149); 
2007: ($13,569). 

Interest and dividends income on certificate of deposit and trust fund: 
2008: [Empty]; 
2007: ($3,131). 

Change in operating assets: 

Contributions receivable: 
2008: $(4,800); 
2007: $(81,300). 

Accounts receivable: 
2008: ($9,820); 
2007: [Empty]. 

Prepaid expenses: 
2008: ($1,471); 
2007: $370. 

Change in operating liabilities: 

Accounts payable: 
2008: ($8,898); 
2007: $3,420. 

Line of credit note payable: 
2008: ($100,000); 
2007: [Empty]; 

Accrued payroll, related taxes and leave: 
2008: $6,740; 
2007: ($10,348), 

Liability for tax penalty and interest: 
2008: ($3,317); 
2007: ($483). 

Net cash provided/(used) in operating activities: 
2008: $20,609; 
2007: $19,926. 

Cash flows from investing activities: 

Purchase of computer equipment: 
2008: [Empty]; 
2007: ($8,098). 

Proceeds from certificate of deposit: 
2008: $59,610; 
2007: [Empty]. 

Net proceeds from sale of investments: 
2008: $29,267; 
2007: $20,000. 

Net cash provided by investing activities: 
2008: $88,877; 
2007: $11,902. 

Cash flows from financing activities: 

Principal payments under capital lease obligation: 
2008: ($4,068); 
2007: ($1,795). 

Repayment of loans: 
2008: ($664); 
2007: ($22,657). 

Net cash provided by financing activities:
2008: ($4,732); 
2007: ($24,452). 

Net increase in cash and cash equivalents: 
2008: $104,754; 
2007: $7,376. 

Cash and cash equivalents, beginning of year: 
2008: $15,937; 
2007: $8,561. 

Cash and cash equivalents, end of year: 
2008: $120,691; 
2007: $15,937. 

Supplemental data: 

Cash paid during year for interest: 
2008: $7,239; 
2007: $12,590. 

Supplemental data on noncash investing and financing activities: 

A capital lease obligation of $20,129 was incurred when the Foundation 
entered into a lease for new equipment in fiscal year 2007. 

The accompanying notes are an integral part of these financial 
statements. 

[End of table] 

Notes to Financial Statements: 

The Congressional Award Foundation: 
Notes to Financial Statements: 
For the Fiscal Years Ended September 30, 2008, and 2007: 

Note 1. Organization: 

The Congressional Award Foundation (the Foundation) was formed in 1979 
under Public Law 96-114 and is a private, nonprofit, tax-exempt 
organization under Section 501(c)(3) of the Internal Revenue Code 
established to promote initiative, achievement, and excellence among 
young people in the areas of public service, personal development, 
physical fitness, and expedition. New program participants totaled over
4,400 in fiscal year 2008. During fiscal year 2008, there were 
approximately 26,500 participants registered in the Foundationís Award 
program. Public Law 109-143, enacted in December 2005, reauthorized the 
Congressional Award Foundation through September 30, 2009. 

Note 2. Summary of Significant Accounting Policies: 

A. Basis of Accounting. 

The financial statements are prepared on the accrual basis of 
accounting in conformity with U.S. generally accepted accounting 
principles applicable to not-for-profit organizations. 

B. Cash Equivalents and Certificate of Deposit. 

The Foundation considers funds held in its checking account and all 
highly liquid investments with an original maturity of 3 months or less 
to be cash equivalents. Money market funds held in the Foundationís 
Congressional Award Fellowship Trust (the trust) are not considered 
cash equivalents for financial statement reporting purposes. 

As of September 30, 2007, the Foundation had a $50,000 certificate of 
deposit, which was pledged as collateral on a $100,000 line of credit. 
In February 2008, the $50,000 certificate of deposit was used to pay 
down the original $100,000 line of credit. In May 2008, the balance 
remaining on the $100,000 line of credit was paid in its entirety (see 
note 6). In addition, the Foundation negotiated a new line of credit 
for $50,000 that bears interest at prime plus 2 percent. 

C. Contributions Receivable. 

Unconditional promises to give are recorded as revenue when the 
promises are made. Contributions receivable to be collected within less 
than one year are measured at net realizable value. 

D. Equipment, Furniture, and Fixtures and Related Depreciation. 

The Foundation capitalizes equipment, furniture, and fixtures with an 
individual asset acquisition cost of more than $2,500. Assets are 
stated at cost, and depreciation is computed using the straight-line 
method over estimated useful lives of 5 to 10 years. Expenditures for 
major additions and betterments are capitalized and expenditures for 
maintenance and repairs are charged to expense when incurred. Upon 
retirement or disposal of assets, the cost and accumulated depreciation 
are eliminated from the accounts and the resulting gain or loss is 
included in revenue or expense, as appropriate. Donated equipment is 
recorded at fair value. 

The capital lease liability represents the lesser of the net present 
value of future lease payments or the fair value of the asset acquired. 
Amortization of the capital lease is included in depreciation expense. 

E. Congressional Award Fellowship Trust - Investments. 

The trust investments consisted of equity securities and money market 
funds, which were stated at fair value in fiscal year 2007. The trust 
was terminated in November 2007 (see note 4). 

F. Classification of Net Assets. 

The net assets of the Foundation are reported as follows: 

* Unrestricted net assets represent the portion of expendable funds 
that are available for the general support of the Foundation. 

* Temporarily restricted net assets represent amounts that are 
specifically restricted by donors or grantors for specific programs or 
future periods. 

The Foundation has no permanently restricted net assets. 

G. Revenue Recognition. 

Contribution revenue is recognized when received or promised and 
recorded as temporarily restricted if the funds are received with donor 
or grantor stipulations that limit the use of the donated assets to a 
particular purpose or for specific periods. When a stipulated time 
restriction ends or purpose of the restriction is met, temporarily 
restricted net assets are reclassified to unrestricted net assets and 
reported in the statement of activities as net assets released from 
restrictions. 

H. Functional Allocation of Expenses. 

The costs of providing the various programs and other activities have 
been summarized on a functional basis as described in note 12. 
Accordingly, certain costs have been allocated among the programs and 
supporting services benefited. 

I. Estimates. 

The preparation of financial statements in conformity with U.S. 
generally accepted accounting principles requires management to make 
estimates and assumptions that affect certain reported amounts and 
disclosures. Accordingly, actual results could differ from those 
estimates. 

J. Reclassifications. 

Certain fiscal year 2007 amounts have been reclassified to conform with 
fiscal year 2008 classifications. 

Note 3. Contributions Receivable: 

At September 30, 2008, and 2007, promises to give totaled $137,400 and 
$132,600, respectively, none of which were temporarily restricted by 
the donors. All amounts were due within one year. All but $31,250 of 
the $137,400 receivable at September 30, 2008, was received by May 1, 
2009. 

Note 4. Congressional Award Fellowship Trust: 

The trust was established in 1990 to benefit the charitable and 
educational purposes of the Foundation. During the fiscal year ended 
September 30, 2008, the trustees authorized the use of $29,267 of the 
trust fund to support fiscal year 2008 operations. 

In October 2007, the Board of Directors of the Foundation requested 
that the trustees of the Congressional Award Trust approve distribution 
of the assets of the trust to the Foundation, approved termination of 
the trust, and directed that the assets of the trust (together with the 
certificate of deposit and other funds) be used for repayment of the 
Foundation's line of credit. The trustees approved distribution of the 
assets of the trust, and in November 2007, the Foundation received such 
assets and the trust was terminated. 

At September 30, 2008, and 2007, the trust fundís investments at fair 
value consisted of the following: 

Description: Equity and debt securities: 
September 30, 2008: $0; 
September 30, 2007: $27,414. 

Description: Money market funds: 
September 30, 2008: $0; 
September 30, 2007: $1,704. 

Total: 
September 30, 2008: $0; 
September 30, 2007: $29,118. 

Activity in the trust fund for the fiscal years ended September 30, 
2008, and 2007 was as follows: 

Interest and dividends (securities only): 
September 30, 2008: $0; 
September 30, 2007: $473. 

Net realized gains: 
September 30, 2008: $149; 
September 30, 2007: $13,569. 

Net unrealized losses: 
September 30, 2008: $0; 
September 30, 2007: ($3,776). 

Total investment gains (losses): 
September 30, 2008: $149; 
September 30, 2007: $10,266. 

New contributions to investment fund: 
September 30, 2008: $0; 
September 30, 2007: $0. 

Investments and earnings transferred to current operations: 
September 30, 2008: ($29,267); 
September 30, 2007: ($20,000). 

Net change in trust fund investments: 
September 30, 2008: ($29,118); 
September 30, 2007: ($9,734). 

Trust fund investments, beginning of year: 
September 30, 2008: $29,118; 
September 30, 2007: $38,852. 

Trust fund investments, end of year: 
September 30, 2008: $0; 
September 30, 2007: $29,118. 

[End of table] 

Note 5. Equipment, Furniture, and Fixtures: 

Equipment, furniture, and fixtures as of September 30, 2008, and 2007, 
is shown in the schedule below. 

Computer software: 
September 30, 2008: $25,868; 
September 30, 2007: $25,868. 

Equipment - capital lease: 
September 30, 2008: $20,129; 
September 30, 2007: $20,129. 

Furniture and equipment: 
September 30, 2008: $76,576; 
September 30, 2007: $76,576. 

Contributed equipment: 
September 30, 2008: $15,100; 
September 30, 2007: $15,100. 

Accumulated depreciation: 
September 30, 2008: ($110,339); 
September 30, 2007: ($106,822). 

Accumulated amortization - capital lease: 
September 30, 2008: ($5,522); 
September 30, 2007: ($1,496). 

Equipment, furniture, and fixtures, net: 
September 30, 2008: $21,812; 
September 30, 2007: $29,355. 

Equipment under capital lease is pledged as collateral under the terms 
of the lease agreements. 

[End of table] 

Note 6. Line of Credit: 

The Foundation had a $100,000 revolving line of credit with its bank 
that bore interest at the Wall Street Journal Prime Rate plus 2 
percent. Interest paid on this line of credit during fiscal years 2008 
and 2007 was $4,145 and $9,620, respectively. The line of credit was 
partially secured by the Foundationís investment in a $50,000 
certificate of deposit held by the same bank. In February 2008, the 
$50,000 certificate of deposit was used to pay down the original 
$100,000 line of credit. In May 2008, the remaining balance on the 
$100,000 line of credit was paid in its entirety. 

In February 2008, the Foundation negotiated a new line of credit for 
$50,000 that bears interest at prime plus 2 percent and is secured by a 
lien on all business assets. There was no activity on this line of 
credit during the remainder of the fiscal year. 

Note 7. Loan from National Director: 

During fiscal years 2008 and 2007, the National Director used her 
credit card to purchase items for the Foundation. All amounts paid by 
the National Director have been reimbursed. 

Note 8. Liability for Tax Penalty and Interest: 

The Foundation filed its annual Internal Revenue Service Form 990 
information return for fiscal year 2005 in July 2006. The Internal 
Revenue Service issued a letter to the Foundation in December 2006, 
advising it that the information return was filed late and that 
penalties and interest had accrued in the amount of $3,580 as of 
January 8, 2007. On January 24, 2007, the Foundation appealed this 
decision. On February 23, 2007, the Internal Revenue Service advised 
the Foundation that it had not yet made a determination and was still 
reviewing the appeal. In November 2007, the Internal Revenue Service 
forwarded the request and all applicable documents to an appeals 
coordinator for final determination. The tax liability of $3,800 was 
reduced by a $483 holdback from the Internal Revenue Service, leaving a 
balance owed at September 30, 2007, of $3,317. 

On March 7, 2008, the Foundation received notification from the Appeals 
Section of the Internal Revenue Service that its request for appeal 
regarding the accrual of penalties and interest stemming from the 
Foundation's late filing of its fiscal year 2005 Form 990 information 
return was denied. On March 18, 2008, the Foundation paid the full 
amount of the obligation of $3,520 ($3,317 plus interest). 

Note 9. Capital Lease Liability: 

During fiscal year 2007, the Foundation entered into a capital lease 
for new computer equipment for $20,129. 

The following is a schedule (by fiscal year) of future minimum lease 
payments under capital leases together with the present value of the 
net minimum lease payments for the 3-year period remaining, net of 
interest, as of September 30, 2008. 

Years ending September 30, 2009: $7,197; 
Years ending September 30, 2010: $6,973; 
Years ending September 30, 2011: $3,886: 
Total minimum lease payments: $18,056; 
Less: amount representing interest: ($3,790); 
Present value of net minimum lease payments: $14,266. 

[End of table] 

Note 10. Temporarily Restricted Net Assets: 

Temporarily restricted net assets as of September 30, 2008, and 2007 
were available for the following programs and future periods: 

Puerto Rico Council development: 
September 30, 2008: $15,024; 
September 30, 2007: $16,237. 

Nevada Council development: 
September 30, 2008: $4,942; 
September 30, 2007: $6,520. 

Total net assets temporarily restricted for use: 
September 30, 2008: $19,966; 
September 30, 2007: $22,757. 

Net assets released from restrictions during the years ended September 
30, 2008, and 2007 were as follows: 

Puerto Rico Council development: 
September 30, 2008: $1,214; 
September 30, 2007: $1,159. 

Nevada Council development: 
September 30, 2008: $1,578; 
September 30, 2007: $1,545. 

Total temporarily restricted net assets released for use: 
September 30, 2008: $2,792; 
September 30, 2007: $2,704. 

[End of table] 

Note 11. In-kind Contributions: 

During fiscal years 2008 and 2007, the Foundation received in-kind 
(noncash) contributions from donors. In-kind contributions are 
accounted for as contribution revenue and as current period operating 
expenses. 

The value of the in-kind contributions recognized was $89,989 and 
$71,486 for fiscal years 2008 and 2007, respectively. These noncash 
contributions are as follows. 

Professional services: 

Legal: 
2008: $30,000; 
2007: $30,000. 

Web site: 
2008: $10,000; 
2007: $13,520. 

Donations relating to fundraising: 
2008: $33,260; 
2007: $14,652. 

Donations relating to program: 
2008: $16,729; 
2007: $13,314. 

Total in-kind contributions: 
2008: $89,989; 
2007: $71,486. 

[End of table] 

In fiscal year 2007, in-kind donations relating to fundraising and 
program were shown together and totaled $27,966. In fiscal year 2008, a 
specific classification for program related in-kind donations was 
added. Under this new classification, fiscal year 2007 donations 
relating to fund-raising and program are shown separately above and were
$14,652 and $13,314, respectively. 

During fiscal years 2008 and 2007, the Foundation employed the services 
of unpaid interns. However, amounts for the intern services are not 
included in these financial statements because the value of the 
services is not readily determinable. 

In addition, Section 106(e) of the Congressional Award Act, as amended, 
provides that "the Board may benefit from in-kind and indirect 
resources provided by the Offices of Members of Congress or the 
Congress." Resources so provided include use of office space, office 
furniture, and certain utilities. In addition, section 102 of the 
Congressional Award Act, as amended, provides that the United States 
Mint may charge the United States Mint Public Enterprise Fund for the 
cost of striking Congressional Award Medals. The costs of these 
resources cannot be readily determined and, thus, are not included
in the financial statements. 

Note 12. Expenses by Functional Classification: 

The Foundation has presented its operating expenses by natural 
classification in the accompanying Statements of Activities for the 
fiscal years ending September 30, 2008, and 2007. Presented below are 
the Foundation's expenses by functional classification for the fiscal 
years ended September 30, 2008, and 2007. 

Program activities: 
2008: $536,844; 
2007: $433,326. 

Fund-raising activities: 
2008: $152,879; 
2007: $117,273. 

Costs of direct benefit to donors: 
2008: $13,135; 
2007: $9,768. 

Administrative activities: 
2008: $119,721; 
2007: $114,306. 

Total: 
2008: $822,579; 
2007: $674,673. 

[End of table] 

In fiscal year 2007, expenses for fund-raising activities and costs of 
direct benefit to donors were shown together and totaled $127,041. In 
fiscal year 2008, a specific classification for costs of direct benefit 
to donors was added. Under this new classification, fiscal year 2007 
expenses relating to fundraising activities and costs of direct benefit 
to donors are shown separately above and were $117,273 and $9,768, 
respectively. 

Note 13. Employee Retirement Plan: 

For the benefit of its employees, the Foundation participates in a 
voluntary 403(b) tax-deferred annuity plan, which was activated on 
August 27, 1993. Under the plan, the Foundation may, but is not 
required to, make employer contributions to the plan. There were no 
contributions to the plan in fiscal years 2008 and 2007. 

Note 14. Related Party Activities: 

The Foundation engaged in numerous transactions with related parties 
during fiscal years 2008 and 2007. 

During fiscal years 2008 and 2007, the Foundation had an agreement with 
a professional fund-raiser. The professional fund-raiserís spouse is on 
the board of directors of the Foundation. Disbursements by the 
Foundation during fiscal years 2008 and 2007 to the related party 
totaled $18,000 and $18,000, respectively. 

During fiscal years 2008 and 2007, the Controller, through his 
professional tax business, prepared the Foundationís annual Internal 
Revenue Service Form 990 information returns. His firm was compensated 
$900 and $940 during fiscal years 2008 and 2007, respectively. 

During fiscal years 2008 and 2007, the National Director utilized her 
credit card to purchase items for the Foundation. All amounts paid by 
the National Director were reimbursed. 

During fiscal year 2007, a board member, through his company, made a 
direct contribution to the Foundation to cover costs associated with a 
breakfast with the New Jersey delegation in the amount of $1,416. 

The following in-kind contributions were made by related parties and 
are included in note 11: 

* During fiscal years 2008 and 2007, an ex officio director of the 
board provided pro bono legal services to the Foundation. The value for 
fiscal years 2008 and 2007 was $30,000 and $30,000, respectively. 

* During fiscal years 2008 and 2007, a board member did not request
reimbursement of expenses for participants to attend Mississippi and 
Washington, D.C., ceremonies. The value for fiscal years 2008 and 2007 
was $2,950 and $2,800, respectively. 

* During fiscal year 2008, a board member did not request reimbursement 
of expenses for transportation costs to assist with Congressional Award 
events in Washington, D.C. and Pennsylvania, the value of which was 
$1,049. 

* During fiscal year 2008, a board member, through his company, 
provided services relating to the Annual Poker Tournament, the value of 
which was $3,700. 

* During fiscal year 2008, a board member, through his company, 
provided filming of the Gold Award Ceremony, the value of which was 
$8,000. 

* During fiscal year 2007, a board member, through his company, paid 
for fund-raising events, the value of which was $1,548. This board 
member, through his company, also provided a prize for a fund-raising 
event, the value of which was $136. 

[End of notes to financial statements] 

Footnote: 

[1] GAO, Standards for Internal Control in the Federal Government, 
[hyperlink, http://www.gao.gov/products/GAO/AIMD-00-21.3.1] 
(Washington, D.C.: November 1999). 

[End of section] 

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