Review of the Disabled American Veterans' Financial Statements for the Year Ended December 31, 1980
AFMD-82-8: Published: Oct 15, 1981. Publicly Released: Oct 15, 1981.
- Full Report:
GAO reviewed the financial statements for the year ended December 31, 1980, of the Disabled American Veterans (DAV) National Headquarters. DAV is a federally chartered, privately funded, nonprofit corporation established to advance the interests of injured and disabled American veterans. GAO reviewed the workpapers and audit report of the independent certified public accountanting firm that DAV uses to determine the quality of its work and the extent to which GAO could rely on the firm's audits. GAO performed such tests as necessary to ensure that: DAV financial statements were prepared in accordance with generally accepted accounting principles, the audit was made in accordance with generally accepted auditing standards, and the accounting firm had established the necessary policies and procedures to comply with other applicable professional standards.
During the GAO review of the accounting firm's workpapers and audit report, nothing appeared that would indicate that the firm's opinion on the 1980 DAV financial statements was inappropriate. GAO, therefore, concurred with and transmitted to Congress the firm's opinion and the 1980 DAV financial statements. Existing laws require DAV audits by both GAO and independent accountants. GAO and DAV feel that the requirement for GAO to audit the DAV account annually is duplicative and unnecessary. Even if the duplicate annual audit were eliminated, GAO would still perform some oversight of the DAV financial statements and independent auditor's report each year. Since DAV is a federally chartered corporation, its annual reports are subject to a desk review by GAO.
Matter for Congressional Consideration
Status: Closed - Not Implemented
Comments: The House Committee on the Judiciary does not intend to act on the recommendation, but prefers GAO or DAV to sponsor legislation to make the desired change. DAV plans to do so.
Matter: Congress should amend the authorizing legislation of the Disabled American Veterans (DAV) to eliminate the requirement for an annual audit of DAV financial statements by GAO.