GAO discussed its audit of the Congressional Award Foundation. GAO found that: (1) the financial condition of the Foundation has improved since 1987, most notably in the reduction of its debt and operating expenses; (2) weaknesses in internal accounting controls continue to exist; (3) the Foundation complied with a law requiring that it make expenditures only when resources are available; and (4) program officials adequately responded to 7 of the 12 recommendations included in earlier reports, which represented positive steps toward improving program operations.