Financial Audit: American Battle Monuments Commission's Financial Statements for Fiscal Years 2012 and 2011 Page: 2 of 49
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Highlights of GAO-13-641, a report to the
Chairman and the Secretary, American Battle
Why GAO Did This Study
Created in 1923, the Commission
operates and maintains 24 American
military cemeteries on foreign soil; 25
federal memorials, monuments, and
markers; and 8 nonfederal memorials.
In accordance with section 2103 of title
36, United States Code, GAO initiated
work in July 2012 to conduct the annual
audit of the Commission's financial
statements for fiscal years ended
September 30, 2012 and 2011.
Subsequently, on December 28, 2012,
the GAO Mandates Revision Act of
2012 was enacted, which repealed
GAO's annual requirement to audit the
Commission's financial statements.
However, because the audit was in
progress at the time the act was
passed, GAO elected to complete it
under the authority of the Comptroller
General to conduct evaluations on
GAO audited the Commission's 2012
and 2011 financial statements to
determine whether, in all material
respects, the financial statements were
fairly presented. GAO also tested the
Commission's compliance with selected
laws and regulations.
What GAO Recommends
GAO is not making any
recommendations in this report, but will
be reporting separately on the internal
control matters identified during its audit
and providing recommendations for
In commenting on a draft of this report,
the Commission concurred with GAO's
findings and conclusions and stated that
it has initiated corrective actions on the
material weaknesses and significant
View GAO-13-641. For more information,
contact Cheryl E. Clark at (202) 512-9377 or
American Battle Monuments Commission's Financial
Statements for Fiscal Years 2012 and 2011
What GAO Found
In GAO's opinion, the financial statements of the American Battle Monuments
Commission (the Commission) as of September 30, 2012 and 2011, and for the
fiscal years then ended, are presented fairly, in all material respects, in
conformity with U.S. generally accepted accounting principles. However, GAO
found two material weaknesses that resulted in ineffective internal control over
financial reporting. GAO also found one area of noncompliance with laws and
regulations it tested.
The material weaknesses concern the Commission's financial reporting process
and its monitoring process. Because of these control weaknesses, GAO found
significant errors in the Commission's financial reporting that were not detected
by the Commission. The Commission made the necessary adjustments and was
able to prepare financial statements that were fairly stated in all material respects
by fiscal year-end. However, these material weaknesses increase the risk that a
material misstatement of the Commission's financial statements will not be
prevented, or detected and corrected, on a timely basis. GAO also found that a
previously reported significant deficiency concerning foreign payroll processing
continued to exist during fiscal year 2012. These material weaknesses and the
significant deficiency in internal control warrant the attention of those charged
with governance of the Commission.
The area of noncompliance concerns the Commission not properly using its
Foreign Currency Fluctuation Account for fluctuations in foreign currency
exchange rates related to payments made in foreign currencies.
The Commission's Lorraine American Cemetery and Memorial in Lorraine, France
Source: American Battle Monuments Commission,
United States Government Accountability Office
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United States. Government Accountability Office. Financial Audit: American Battle Monuments Commission's Financial Statements for Fiscal Years 2012 and 2011, report, July 19, 2013; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc299244/m1/2/: accessed September 23, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.