Congressional Award Foundation: Review of the FY 2024 Financial Statement Audit

Based on the limited procedures GAO performed in reviewing the performance of the independent public accountant’s (IPA) audit of the Congressional Award Foundation’s financial statements for fiscal year 2024, GAO did not identify any significant issues it believes require attention. Had GAO performed additional procedures, other matters related to the performance of the audit might have come to its attention that it would have reported.

The IPA provided an unmodified audit opinion on the Foundation’s financial statements for fiscal years 2024 and 2023. Specifically, the IPA found that the Foundation’s financial statements were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. However, for fiscal year 2024, the IPA identified a deficiency related to revenue recognition that it considered to be a material weakness in the Foundation’s internal control over financial reporting. Further, for fiscal year 2024, the IPA did not identify instances of noncompliance or other matters that are required to be reported under U.S. generally accepted government auditing standards. The Foundation concurred with the IPA’s conclusions.

GAO’s review of the Foundation’s fiscal year 2024 financial statement audit, as differentiated from an audit of the financial statements, was not intended to enable GAO to express—and it does not express—an opinion on the Foundation’s financial statements or a conclusion on the effectiveness of its internal control over financial reporting. Furthermore, GAO does not express an opinion on the Foundation’s compliance with provisions of applicable laws, regulations, contracts, and grant agreements. The IPA is responsible for its reports on the Foundation and the conclusions expressed therein.

GAO provided a draft of this report to the Foundation and the IPA for review and comment. The Foundation’s National Director and the Foundation’s Audit Committee Chair responded in an email that they have taken actions to improve operations and internal controls over financial reporting related to revenue recognition. The IPA’s Audit Principal responded in an email that the IPA had no comments regarding GAO’s report and its findings.

Why GAO Did This Study

This report presents the results of GAO’s review of the Foundation’s financial statement audit for fiscal year 2024. The Congressional Award Act established the Congressional Award Board to carry out a program to promote excellence among the nation’s youth in the areas of public service, personal development, physical fitness, and expedition or exploration. The Board created the Foundation as a nonprofit corporation to help it carry out this program. The Congressional Award Act, as amended by the Government Reports Elimination Act of 2014, requires the Foundation to obtain an annual financial statement audit from an IPA. The act also includes a provision for GAO to review the audit and report the results to the Congress annually.

GAO’s objective was to review the Foundation’s fiscal year 2024 financial statement audit to identify any significant issues it believes require attention. To satisfy this objective, GAO (1) read and considered various documents with respect to the IPA’s independence, objectivity, and qualifications; (2) analyzed key IPA audit documentation; (3) read the Foundation’s financial statements for fiscal years 2024 and 2023, the IPA’s audit report on the these statements, and the IPA’s report on internal control over financial reporting and on compliance and other matters based on its audit; and (4) discussed matters pertinent to its objective with IPA representatives and Foundation management officials.

For more information, contact Cheryl E. Clark at clarkce@gao.gov.