Federally Chartered Corporation:
Review of the Financial Statement Audit Report for the Civil Air Patrol, Incorporated, for Fiscal Year 1996
AIMD-98-297R: Published: Sep 23, 1998. Publicly Released: Sep 23, 1998.
- Full Report:
Pursuant to a congressional request, GAO reviewed the audit report covering the financial statements of the Civil Air Patrol, Incorporated, for the fiscal year ended September 30, 1996, focusing on whether the audit report complied with the financial requirements of the law.
GAO noted that: (1) nothing came to GAO's attention that would cause it to believe that the financial reporting requirements of the law have not been met; (2) the audit report included the auditor's opinion that with four exceptions, the financial statements of the corporation were presented in accordance with generally accepted accounting principles; (3) the first exception related to the accounts for approximately 1700 units below wing level that had not been audited; (4) the second exception related to donated assets from the Department of Defense to two different state wings valued at original acquisition cost, rather than fair market value at the date of receipt; (5) the corporation is attempting to determine the fair market values of the donated assets; (6) the third exception relates to the proper recognition of fair rental value of the use of one of the state wing's facilities; (7) the effects of these three exceptions were not readily determinable; and (8) the fourth exception related to the inadequacies of accounting records for one state wing.