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Federal Research: Assessment of the Financial Audit for SEMATECH's Activities in 1990

RCED-92-97 Published: Apr 09, 1992. Publicly Released: Apr 09, 1992.
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Highlights

Pursuant to a legislative requirement, GAO reviewed an independent accountant's audit of SEMATECH, Inc.'s financial statements for the year ending December 31, 1990.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense If the Department of Defense continues to fund SEMATECH activities or participates in other joint industry-government consortia, the Secretary of Defense should require that funds be dispersed through a letter of credit rather than by making advanced payments to the consortium.
Closed – Implemented
DOD implemented the recommendation when it reviewed its grant to SEMATECH in October 1992. Under Grant Modification 12, SEMATECH's quarterly contributions statements must show the expenditure projection for the subsequent quarter. During each quarter, three equal monthly payments based on that quarterly expenditure plan will be made.

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Topics

Accounting proceduresAdministrative costsAdvance fundingAuditsDefense industryElectronic equipment industryFinancial recordsInternal controlsPrivate sectorFinancial statements