This is the accessible text file for GAO report number GAO-04-25R 
entitled 'Federally Chartered Corporation: Review of the Financial 
Statement Audit Reports for the National Federation of Music Clubs for 
Fiscal Year 2002' which was released on October 10, 2003.

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October 10, 2003:

The Honorable F. James Sensenbrenner, Jr.

Chairman, Committee on the Judiciary:

House of Representatives:

Subject: Federally Chartered Corporation: Review of the Financial 
Statement Audit:

Report for the National Federation of Music Clubs for Fiscal Year 2002:

Dear Mr. Chairman:

As requested, we reviewed the audit report covering the financial 
statements of the National Federation of Music Clubs, a federally 
chartered corporation, for the fiscal year ended June 30, 2002. The 
corporation's purpose is to encourage American musical activities. The 
corporation advances its objectives by granting awards and 
scholarships, publishing periodicals, and sponsoring various music-
related activities.

Federally chartered corporations are required under 36 U.S.C. 10101 
to 
present the corporation's assets and liabilities and reasonable detail 
on the corporation's income and expenses in annual financial 
statements, and 
obtain an annual financial audit by an independent public accountant.

The objective of our review was to determine whether the audit report 
complied with the financial reporting requirements of the law. In 
carrying out our work, we reviewed the corporation's financial 
statements and the accompanying notes, performed certain analytical 
procedures related to information presented in the financial 
statements, and reviewed the auditors' report. We also held limited 
discussions with the corporation's auditors regarding potential 
enhancements that could be made to the corporation's financial 
reporting. However, we did not review the auditors' working papers, and 
we are not rendering an audit opinion. Our review disclosed no 
reportable instances of noncompliance with the financial reporting 
requirements of the law.

The audit report included the auditors' opinion that the financial 
statements of the corporation were presented fairly on a modified cash 
basis of accounting. We are returning the audit report you sent with 
your letter.

Sincerely yours,

Jeanette M. Franzel:

Director 
Financial Management and Assurance:

Signed by 
Jeanette M. Franzel: 

w/o Enclosure:

(194331):